Fixing the Healthcare Sector: How Does FinTech Play a Role?

Healthcare expenses are a burden to about half the world's population—and some 100 million are driven into poverty because of them. About 4 in 10 U.S. adults report carrying a hefty debt and avoiding their necessary medical appointments to avoid the costs. And in underdeveloped countries, both access and quality are low. To combat this seemingly age-old issue, Fintech for Health was launched in 2019 with support from the MetLife Foundation.

Over the next couple years, Fintech for Health’s goal is to provide better access and improve the quality of healthcare by utilizing digital financial services. Some of these include creating a digital bank for patients to set aside money exclusively for medical care, and using AI to analyze someone’s credit risk even when their credit history is short. Additionally, the project includes creating mobile wallets and digital ID’s. This means that transactions would be easier, more inclusive and more predictable, aiding those who previously could not afford to go through the long and stressful process only to receive ineffective treatment.

Currently, countries primarily in Africa and Asia are looking to expand their healthcare system to FinTech. Ghana, Kenya, Nigeria, and Tanzania actively use Fintech healthcare, and the technology looks to be expanding to Indonesia, the Philippines, and Singapore as well. In the future, more FinTech initiatives should be considered by the U.S., which would help the disproportionately affected black and Hispanic communities that don’t have the same level of access as others do.

Why Is FinTech Better Than Alternatives?

Because FinTech uses digital services, there is a built-in level of protection and privacy that other institutions may not have. With qualities such as end-to-end encryption and other protective measures, FinTech has the power to protect your financial decisions in a way that others cannot. 

To continue, many underdeveloped countries have a widespread use of cellphones, but don’t have security in larger organizations, such as banks or insurance companies. Combining the two means that more people can access beneficial treatment using resources they already have. This is especially important in case there is a nationwide emergency, where prices rise even higher or certain places are no longer available. This way, FinTech for Health could potentially be used as an emergency plan and can be used until the economy is restored.

What Does This Mean For the Future?

In a few years, FinTech will most likely become a more common healthcare aid throughout the world. By implementing digital technology to make the process of receiving medical support easier and more affordable for the consumer, Fintech for Health should use their resources in order to benefit the healthcare industry as a whole.