A Path to Financial Inclusion Through Technology

Regulatory Ramblings

Ep #57 with Eelee Lua, xcube

Eelee Lua is chief of staff and a director at xcube.co – a Singapore-based corporate venture studio. A seasoned business leader in the technology space, specializing in risk mitigation and strategic partnerships. Having entered the risk and compliance field 13 years ago, having previously held roles at AsiaVerify and the RISQ Group.

Eelee holds a board director accreditation from the Singapore Institute of Directors, and actively contributes to industry communities such as the Singapore FinTech Association and Women In Alliances.

Recently, she penned an article entitled “Circular Financial Identity – The Missing Piece for Financial Inclusion,” which forms the basis for this episode’s discussion.

In this instalment of Regulatory Ramblings, Eelee talks to host Ajay Shamdasani about her piece and how financial inclusion remains a critical global issue, with approximately 1.4 billion people still lacking access to formal financial services. She also shared a little about Defy, an xcube company on a mission to address financial inclusion. Her observation that traditional financial systems often exclude marginalized populations, such as low-income individuals, women, rural communities, and refugees was what compelled her to write the article. Financial exclusion not only limits economic opportunities but also perpetuates poverty.

Yet, all is not lost and Eelee believes technology may yet deliver true financial inclusion. A promising solution to bridge this gap is Circular Financial Identity (CFI), she says, “which has the potential to transform financial inclusion efforts worldwide.” The key, she says is understanding CFI because “unlike traditional digital identities that rely on static information and centralized databases, CFI employs a dynamic, decentralized, and interoperable system” – thereby enabling “under-documented individuals, including refugees, to gradually build their financial identity by capturing their digital financial footprint across various domains such as earning, spending, borrowing, saving, investing, and lending.”

The circularity of data, particularly, the continuous accumulation and reuse of financial data create a comprehensive, robust, and evolving picture of their financial behaviour and capabilities, enabling access to a broader range of financial services, Eelee says.
(For more details about CFI, visit: www.hkufintech.com/regulatoryramblings)
Eelee also shares a little about her own background, upbringing, education and what launched her on a path to a compliance career. She also describes what xcube does as well as her own “moment of epiphany” when she realized that the world of cryptocurrencies and digital assets were something important that she needed to pay attention to in the years to come.

Looking ahead, while she thinks Web3 will have a marked impact on banking Southeast Asia and the Middle East, she cautions that many of the world’s financial institutions have yet to consider the interoperability and integration issues of how to use such technologies in the current world.

A resolute believer in the power of targeted use of technology to aid the perennial global cause of financial inclusion and bring about a more egalitarian world with a more level playing field, the conversation concludes with her reflections on a decade plus in the risk and compliance field, and her greatest lessons, challenges and regrets in that time.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Kapitler

1. A Path to Financial Inclusion Through Technology (00:00:00)

2. Curiosity with Opportunity: Eelee Lua’s Accidental Career in Risk & Compliance (00:03:43)

3. Empowering Innovation Beyond Core Business: The xcube and Defy Approach to Venture Ecosystems (00:09:31)

4. Beyond Access: How Web3, AI, and Blockchain Drive Financial Inclusion and Economic Progress (00:17:56)

5. Breaking Through the Noise to Keep Financial Inclusion in the Spotlight (00:29:31)

6. How “Circular Financial Identity” Can Transform Inclusion on a Global Scale (00:42:09)

7. From Pressure to Partnership: Overcoming Tech’s Intimidation Through Collaboration in Compliance (00:47:27)

8. From Read-Write to Read-Write-Own: Understanding Web3’s Transformative Impact on Data Ownership and Daily Life (00:58:26)

9. Trust and Technology: How Awareness, Security, and Real-Life Impact Drive User Confidence Amid Risks (01:05:34)

10. Breaking Silos and Embracing Growth: Insights for New Professionals in Compliance and Beyond (01:10:24)