EXCLUSIVE: 'Embarrassing.' Fintech Execs Slam U.S.'s Financial Literacy. What They Say Will Help Fix The Problem

A major challenge for fintech leaders is expanding the reach of the sector so that it's more inclusive.

Lule Demmissie, CEO of eToro U.S., said her company is making strides in its efforts to increase the accessibility of the space, but there are plenty of communities out there that remain underrepresented in the investing world.

"This is not going to be a destination, but a journey. And I think the fight is not about whether or not we get to that destination, but to make sure that we are guarding with absolute zealous vengeance, the ability to get there, " Demmissie said Thursday at Benzinga's 2022 Global Fintech Deal Day in New York City.

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The challenge for underserved communities is that the space is digital. However there has been a lot of progress made on this front with the advancement of smartphones, Demmissie said during the panel, "How Leaders Can Make Fintech More Inclusive."

But it's not just about giving underrepresented communities access to the space.

UNest founder and CEO Ksenia Yudina, who joined Demmissie on stage at the event, said her company's mission is to democratize access to financial services for families. 

"I completely agree that a lot of communities are still not engaged and involved in fintech ... in my mind, the biggest reason for that is education," Yudina said.

Financial literacy in this country is so low, "it's embarrassing," she said, adding the majority of people don't have access to financial advisors or know the proper ways to save for their children. 

"Young people graduate into adult life burdened with all kinds of debt, student debt, credit card debt and so that's what we are trying to fix," Yudina said.

Myles Gage, co-founder of Rapunzl, said his company offers a solution to the digital financial education problem. 

Rapunzl's platform allows customers to create simulated stock portfolios and also gives access to a full financial education curriculum, which is the key to making fintech more inclusive, he said, echoing comments from Demmissie and Yudina.

"I think it's just a matter of how are we educating the next generation of leaders ... and I think it just comes down to the intentionality of how we are directing or how we're marketing, but also the decision makers that are in these rooms creating these products," Gage said. 

Check out the full event below: