New products and innovation are needed to broaden access to the global financial system, participants on a Davos panel said Tuesday.
At least two billion people live outside the financial system, and at least another two billion are poorly served, and pay high fees or interest rates for services for which the wealthy pay much less, said Dan Schulman, chief executive of PayPal PYPL, -0.60%.
“We have a good financial system…but I don’t think it’s doing the job that it needs to do, which is being an inclusive economy that brings everybody in together,” Mr. Schulman said.
Mark Suzman, chief executive officer of the Bill & Melinda Gates Foundation, said new tools are needed to unlock what he called multilateral development finance, since many poorer countries don’t have the firepower to weather a debt crisis.
The panelists said they are most excited about the potential for artificial intelligence to transform finance. However, they sounded a note of caution about financial innovation.