For as long as the internet has existed, a fateful question has loomed over its development. Pessimists have long said that increasingly advanced digital technology would leave behind those who lack the tools and training to utilize it. What good is the internet, they argue, for people without the computers to use it, the infrastructure to maintain a stable connection, and the education to make the most of its capabilities? As the well-off members of society benefit from increased productivity and entertainment, the theory goes, the poorest will be shut out entirely — finding even the bottom rung of this new ladder to be hopelessly out of reach.

Optimists, for their part, have envisioned the digital age as one of accelerated democratization, putting resources and access in the hands of those who need them most. They concede that internet access requires an investment, but point out that plenty of education is cheap or free when people do get online. Working and shopping remotely, they add, cost far less than traveling to workplaces or shopping centers each day, especially by car. Moreover, the internet lets people participate in active economic sectors even if they live far away from high-rent urban districts.

Both of these arguments seemed compelling at the dawn of the internet age. But developments in the intervening years — as well as those currently driving Fintech — seem to at last provide a definitive answer to this question of how the internet affects social stratification.

Over the past two decades, the online world has provided more than enough economic growth to support expanded infrastructure, enabling poorer communities to get online. At the same time, the cost of internet-capable devices has plummeted, to the point where a budget laptop or smartphone (especially a used one) is now affordable for virtually everyone.

One by one, the barriers are falling away while productive internet access becomes more commonplace at every level of society. But perhaps the most encouraging development along these lines is the path currently being opened by Fintech. As we will see, today’s Fintech innovations are not merely eliminating obstacles; they are actively and positively boosting the economic prospects of those who have been excluded from opportunity for far too long.

Raising the floor

The widespread embrace of digital payments, alongside other new developments in the Fintech sector, are bringing about increased access to capital among underserved markets.

These welcome trends provide relief for those who need it most, amid a range of macroeconomic challenges — such as general inflation, the high cost of energy, and the types of supply chain issues that have emerged as a result of climate-related events and the ongoing conflict in Ukraine. Consider the following Fintech developments and the ways in which they serve the interests of people who have historically had less economic opportunity:

• New payment solutions facilitate capital access in emerging markets. With social distancing requirements during the pandemic accelerating the trend toward online shopping and digital payments, many of the long-term beneficiaries of this change include consumers who lack access to reliable transportation, as well as those who lack the free time to do their shopping in person. Unsurprisingly, emerging markets show the strongest growth in the digital payment space, driven by a young population which sees increasing demand for financial services.

• The digitalization of financial services allows banks to widen their customer base, as people who live in rural areas can access financial services remotely. This trend has also increased overall banking penetration, which benefits non-traditional financial actors. As digital finance enables easier access to both loans and payment networks, people at all levels of society can benefit from greater economic freedom.

• Fintech in emerging markets has attracted significant investment, driving a more equitable distribution of capital inflows. With poorer and more rural areas now in a better position to receive outside investment and support, their economic ceiling rises considerably.

• Central bank digital currencies are on the rise globally, with several countries exploring their implementation. These CBDCs will give consumers as well as businesses the ability to hold and transfer digital money both locally and globally in an instant, facilitating economic activity without the need for traditional financial infrastructure such as ATMs and bank branches.

• Blockchain-powered Fintech has likewise gained traction in emerging markets. This secure accounting system allows for the reliable and frictionless trading of both goods and services.

Taken together, these developments and innovations make it easier for people across all of society to borrow money, start their own businesses, access the goods and services they need, attract outside investment, and build prosperous financial relationships within and between communities.

In retrospect, it makes sense that the internet would serve as the vehicle for these types of opportunities. Inclusion, after all, begins with connection — and the internet is the best tool for connecting people that the world has ever seen.

As we move deeper into our digital era, we are finally beginning to see what happens when we harness the collective skills and ideas that our society can produce. Influence and success will no longer primarily be the domain of the wealthy or the well-connected, but will be within reach of everybody. Though many obstacles remain, and new challenges will surely arise, the breaking of this ceiling should serve as an inspiration to us all.