Financial technology, or fintech, has become increasingly prevalent in recent years, revolutionizing the way we manage and access financial services. As a result, the impact of fintech on global financial inclusion has become a popular topic in IELTS Writing Task 2 essays. This article will provide sample essays at different band scores to help you prepare for this important subject.
Based on our analysis of past IELTS exams and current trends, we predict that questions related to fintech and financial inclusion are likely to appear more frequently in future tests. Let’s examine a relevant essay prompt that has appeared in recent IELTS exams:
Some people believe that the widespread adoption of financial technology (fintech) will lead to greater financial inclusion globally. Others argue that it may widen the gap between the rich and the poor. Discuss both views and give your own opinion.
Analyzing the Essay Prompt
This question requires candidates to discuss two contrasting viewpoints on the impact of fintech on global financial inclusion. The key points to address are:
- The potential of fintech to increase financial inclusion worldwide
- The possibility that fintech may exacerbate wealth inequality
- Your personal opinion on the issue, supported by reasoning and examples
Now, let’s look at sample essays for different band scores, starting with a high-scoring essay.
Sample Essay 1 (Band 8-9)
The rapid advancement of financial technology has sparked a debate about its potential impact on global financial inclusion. While some argue that fintech will democratize access to financial services, others contend that it may further widen the wealth gap. In my opinion, although challenges exist, the overall effect of fintech on financial inclusion is likely to be positive.
Proponents of fintech argue that it has the potential to bring financial services to previously underserved populations. Mobile banking apps, digital wallets, and peer-to-peer lending platforms have made it possible for people in remote areas to access banking services without the need for physical bank branches. For instance, M-Pesa in Kenya has revolutionized mobile money transfers, allowing millions of unbanked individuals to participate in the formal financial system. Additionally, blockchain technology and cryptocurrencies offer the promise of borderless transactions, potentially reducing the cost and increasing the speed of international remittances.
On the other hand, critics argue that the digital divide may prevent certain segments of the population from benefiting from fintech innovations. Lack of internet access, digital literacy, and smartphones in some regions could exclude vulnerable groups from these new financial services. Moreover, data-driven algorithms used in fintech applications might perpetuate existing biases, potentially leading to discriminatory lending practices or unfair pricing for certain demographics.
In my view, while the concerns about the digital divide are valid, the overall impact of fintech on financial inclusion is likely to be positive. Governments and fintech companies can work together to address these challenges by investing in digital infrastructure, providing digital literacy programs, and developing inclusive fintech solutions. For example, India’s Unified Payments Interface (UPI) has successfully bridged the gap between traditional banking and digital payments, fostering financial inclusion across diverse socioeconomic groups.
In conclusion, although fintech may initially create some disparities, its long-term potential to increase financial inclusion outweighs the drawbacks. By addressing the challenges proactively and leveraging the innovative power of fintech, we can work towards a more financially inclusive global society.
(Word count: 391)
Sample Essay 2 (Band 6-7)
Financial technology, or fintech, has become very popular in recent years. Some people think it will help more people access financial services, while others worry it might make rich people richer and poor people poorer. I believe fintech can be good for financial inclusion if used correctly.
One reason why fintech can improve financial inclusion is that it makes banking services easier to access. Many people in poor countries don’t have bank accounts, but they do have mobile phones. With fintech apps, they can now send money, save, and even get loans using their phones. This means they don’t need to travel far to a bank or have lots of documents. For example, in India, many people use digital wallets to pay for things and send money to family.
However, there are some problems with fintech that could make inequality worse. Not everyone has a smartphone or knows how to use apps. Older people and those in rural areas might find it hard to use new technology. Also, some fintech companies might only want to work with richer customers who can afford their services. This could leave poor people with fewer options for banking.
I think that overall, fintech can help more people access financial services if it is used in the right way. Governments should work with fintech companies to make sure everyone can benefit. They could provide training on how to use fintech apps and make sure there is good internet connection everywhere. Fintech companies should also try to make their services easy to use for everyone, including people who are not good with technology.
In conclusion, while there are some challenges, I believe fintech has the potential to improve financial inclusion around the world. It’s important for governments and companies to work together to make sure everyone can benefit from these new technologies.
(Word count: 339)
Sample Essay 3 (Band 5-6)
Fintech is becoming more popular these days. Some people think it will help more people use banks and money services. But other people worry it will make rich people richer and poor people poorer. I think fintech can be good if we use it right.
Fintech can help people who don’t have banks nearby. They can use their phones to send money and save money. This is good because they don’t need to go far to a bank. For example, in some countries, people use phone apps to pay for things in shops.
But there are some problems with fintech. Not everyone has a smartphone or knows how to use apps. Old people might find it hard to use new technology. Also, some fintech companies might only want rich customers. This could be bad for poor people.
I think fintech can help more people use money services if we do it right. The government should help people learn how to use fintech apps. They should also make sure everyone has internet. Fintech companies should make their apps easy for everyone to use.
In conclusion, I think fintech can be good for helping more people use money services. But we need to be careful and make sure everyone can use it, not just rich people or people who are good with technology.
(Word count: 249)
Explanation of Band Scores
Band 8-9 Essay:
This essay demonstrates a high level of language proficiency and critical thinking. It:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary accurately and flexibly
- Uses a wide range of structures with full flexibility and accuracy
- Organizes ideas logically with clear progression throughout
- Uses cohesive devices effectively
Band 6-7 Essay:
This essay shows a good understanding of the task and adequate language skills. It:
- Addresses all parts of the task, although some parts may be more fully covered than others
- Presents a relevant position, although the conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and there is clear overall progression
- Uses cohesive devices effectively, but cohesion within and/or between sentences may be faulty or mechanical
Band 5-6 Essay:
This essay demonstrates a basic understanding of the task and limited language skills. It:
- Addresses the task only partially; the format may be inappropriate in places
- Expresses a position but the development is not always clear
- Uses a limited range of vocabulary, but this is minimally adequate for the task
- Uses only a limited range of structures with only rare use of subordinate clauses
- Presents information with some organization but there may be a lack of overall progression
- Makes inadequate, inaccurate or over-use of cohesive devices
Key Vocabulary to Remember
- Financial inclusion (noun) – /faɪˈnænʃəl ɪnˈkluːʒən/ – The availability and equality of opportunities to access financial services
- Fintech (noun) – /ˈfɪntek/ – Financial technology, referring to new tech that seeks to improve and automate financial services
- Digital divide (noun) – /ˈdɪdʒɪtl dɪˈvaɪd/ – The gap between demographics and regions that have access to modern information and communications technology and those that don’t
- Democratize (verb) – /dɪˈmɒkrətaɪz/ – To make something available to all people
- Remittances (noun) – /rɪˈmɪtənsɪz/ – Money sent by someone working abroad to their family in their home country
- Blockchain (noun) – /ˈblɒktʃeɪn/ – A system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system
- Cryptocurrency (noun) – /ˈkrɪptəʊˌkʌrənsi/ – A digital or virtual currency that is secured by cryptography
- Digital literacy (noun) – /ˈdɪdʒɪtl ˈlɪtərəsi/ – The ability to use information and communication technologies to find, evaluate, create, and communicate information
- Peer-to-peer lending (noun) – /pɪər tuː pɪər ˈlendɪŋ/ – The practice of lending money to individuals or businesses through online services that match lenders with borrowers
- Underserved (adjective) – /ʌndəˈsɜːvd/ – Not provided with adequate services or facilities
In conclusion, the impact of fintech on global financial inclusion is a complex and relevant topic for IELTS Writing Task 2. By understanding the key arguments and using appropriate vocabulary and structures, you can craft a well-developed essay that addresses all aspects of the question. Remember to practice writing essays on similar topics, such as how fintech changes the way we invest or the impact of digital currencies on financial inclusion. You can also expect to see related questions about the impact of globalization on banking systems or how technology-driven financial services impact consumers.
To further improve your skills, try writing your own essay on this topic and share it in the comments section below. This practice will help you refine your arguments and improve your writing style for the IELTS exam.