The world has seen remarkable progress in financial inclusion. Adults without access to financial services dropped from 2.5 billion in 2011 to 1.4 billion in 2021. This substantial reduction aligns with internet access growth, which expanded from less than one per cent in 1995 to about 68 per cent today. Affordable smartphones made this expansion possible.
We have a long way to go, but we can build on this progress as gaps exist in financial health and connectivity in different regions. Kenya shows promise with a 79 per cent financial inclusion rate, and 69 per cent of adults have mobile money accounts. Other developing economies tell a different story. The United States had 7.1 million unbanked households in 2019, according to FDIC data.
COVID-19 revolutionized the digital financial world. A 2020 Mastercard study showed over 40 million consumers in four Latin American markets became banked within five months of the pandemic. Cash-only consumers in seven Latin American markets dropped substantially from 45 per cent in 2020 to 21 per cent in 2023.
Fintech breakthroughs now connect traditional financial institutions with underserved populations. Most fintech companies (84 per cent) have formed mutually beneficial alliances with existing financial institutions, especially in API integrations and technology exchange. Digital banking helps improve financial education through budgeting tools, savings automation, and educational resources.
This piece explores how inclusive finance and fintech solutions improve access to financial services across East Africa, South Asia, the Pacific Islands, and other active regions. Successful digital financial inclusion models, challenges faced by underserved communities, and collaborative efforts between governments and donors drive eco-friendly change.
The State of Financial Inclusion Today
The latest numbers show remarkable progress in global financial inclusion. Around the world, 79% of adults now have an account at a bank, with a mobile money provider, or both. This represents a big jump from 51% in 2011. Account ownership in low- and middle-income economies has climbed to 75%, showing an 80% increase since 2011. All the same, 1.3 billion adults worldwide still don’t have bank accounts.
Global progress in financial inclusion
The way people access finance has gone through a transformation. Traditional touchpoints like ATMs and bank branches are becoming less common. Retail agents and mobile money agents have started taking their place. The widespread availability of digital financial service points has led to increased usage. About 61% of adults in low- and middle-income economies made or received digital payments in 2024. This shows a 27-percentage-point rise since 2014.
Digital financial inclusion trends in Africa and Asia
Sub-Saharan Africa remains the world leader in mobile money adoption. The region boasts 40% of adults with mobile money accounts in 2024, up from 27% in 2021. Mobile money transactions in Africa grew from 26% to 35% of GDP between 2021 and 2022. Other regions are catching up fast. Latin America and the Caribbean now have 37% mobile money account ownership, a significant rise from 22% in 2021.
South Asia’s account ownership has reached about 80%. Egypt stands out with its financial inclusion rate hitting 70.7% by the end of 2023.
Insights from the World Bank report on financial inclusion
The World Bank’s Global Findex 2025 shows a dramatic uptick in formal saving a crucial factor in financial resilience. About 40% of adults in developing economies now save using accounts, showing a 16-percentage-point increase since 2021. Digital merchant payments have grown to include 42% of all adults.
We have a long way to go, but we can build on this progress. Problems like connectivity gaps, affordability, and low financial literacy still need solutions.
Country-Level Innovations in Fintech
Many developing economies are creating unique fintech solutions that tackle local challenges and expand financial access. Each country’s approach reflects its regulatory framework, cultural context, and technological capabilities.
Kenya’s mobile money ecosystem
M-PESA, a 16-year old service launched by Vodafone and Safaricom, serves as the life-blood of Kenya’s mobile money revolution. The service now operates in Tanzania, Mozambique, Democratic Republic of the Congo, and five other countries. The platform boasts 91% market penetration with 47.7 million active subscriptions as of June 2025. Users complete over 180 million transactions daily. M-PESA’s influence goes beyond mere convenience – studies show it helped 194,000 Kenyan households escape poverty. Annual transaction values reached 7.2 trillion shillings by 2023, making up 55% of Kenya’s GDP.
Bangladesh’s digital ID and mobile finance
Bangladesh has taken big steps forward with its digital identification systems through Smart NIDs and Bangla QR implementations. Daily MFS transactions averaged Tk 48.33 billion (approximately US$314.62 million) in 2024, accounting for about 8.61% of global mobile money transactions. The country launched its Interoperable Digital Transaction Platform ‘Binimoy’ in 2022 to solve fragmentation issues among service providers. Mobile money adoption for loans doubled from 7% to 14% between 2023-2024 as a result.
Ghana’s interoperability reforms
Ghana rolled out Mobile Money Interoperability (MMI) in May 2018. This system allows uninterrupted transfers across different telecommunications networks. The initiative achieved 97% financial inclusion in terms of access, though financial literacy remains at 32% of the population. The Payment Systems and Services Act of 2019 created a reliable legal framework. The Bank of Ghana’s FinTech and Innovation Office (FIO), established in 2020, manages licensing and supervision through a tiered system.
Nigeria’s fintech startup boom
Nigeria’s fintech sector grew by 70% year-over-year despite tough economic conditions. The country now hosts more than 430 fintech companies across 12 verticals as of February 2025. Cryptocurrency and Web3.0 emerged as the fastest-growing segment. Moniepoint secured US$87.36 million in Series C funding, marking a major milestone. Nigeria now dominates Africa’s fintech market with 28% of all African fintech companies.
Fiji and Samoa’s digital inclusion challenges
Samoa launched its second National Financial Inclusion Strategy to increase formal financial access for 40,000 excluded adults by 2025/2026. The country’s Digital and Financial Literacy Survey helps shape targeted interventions. Pacific Island nations still face geographical hurdles. Solomon Islands’ residents spend over an hour reaching service points, with bank branch access costing US$6.89 one-way.
Middle East’s digital finance strategies
Saudi Arabia’s Vision 2030 charts its path to become a digital finance hub, reducing oil dependency through fintech investments. The UAE aims to become a global center for digital finance through its Central Bank’s Financial Infrastructure Transformation Program and Digital Dirham initiatives. Both nations utilize high mobile penetration rates and tech-savvy populations to create cashless societies and boost financial inclusion.
Barriers Facing Underserved Communities
People worldwide still face the most important barriers to financial services, despite progress in financial inclusion. These obstacles create a complex web of exclusion that needs targeted solutions.
Connectivity and infrastructure gaps
The numbers paint a clear picture – 31% of adults who don’t have financial accounts also lack access to mobile phones, which blocks their path to digital financial services. People in remote Pacific Island nations like Solomon Islands spend over an hour to reach service points, and they must pay US$6.89 one-way just to visit a bank branch.
Affordability and cost of access
Money transfers remain too expensive in many markets. Recent data from the Transaction Cost Index shows that mobile money transfers can cost up to 8.6% of the total amount, with Tanzania standing out as one of the priciest markets. These high fees hit low-income users the hardest and could reverse the progress we’ve made toward universal account ownership.
Low financial and digital literacy
The European Union faces a stark reality – 48% of its population lacks financial literacy, while 41.7% struggles with digital skills. These knowledge gaps become major roadblocks because they stop people from using financial services that are right in front of them. Ghana shows this clearly – financial access reaches 97%, but only 32% of people understand how to use these services.
Gender-based financial exclusion
Women face unique challenges in the financial world. Take Kenya, where women run 40% of smallholder farms but receive only 10% of MSME credit. The global picture looks even worse – women make up 56% of all unbanked adults, nearly a billion people. The situation becomes dire especially when you have women who’ve faced abuse and violence, as half of them live in poverty.
Cybersecurity and trust issues
Trust makes or breaks financial inclusion efforts. Cyberattacks have more than doubled since the pandemic, and losses from extreme incidents have quadrupled since 2017, reaching £1.99 billion. Deepfake attacks targeting customers have surged by 243% in the last year, becoming banks’ top security concern. On top of that, 58% of banking customers worry about their personal and financial data security.
Fragmented digital ecosystems
National digital systems often lack proper coordination without the right global infrastructure in place. Entrepreneurs in developing markets must wear multiple hats – they build complete solutions while working to gain trust from regulators, users, and partners because reliable infrastructure doesn’t exist.
How Donors and Governments Are Driving Change
Multilateral organizations, donors, and governments now work together on coordinated initiatives to expand financial access in underserved communities.
World Bank and ADB financial inclusion strategy
More than 60 nations have launched or developed National Financial Inclusion Strategies since 2010. These strategies unite diverse stakeholders like financial regulators, telecommunications ministries, and other government entities. Several countries have made remarkable progress through large-scale policies. India’s Aadhaar initiative stands out by providing over 1.2 billion residents with universal digital identification.
USAID and UNCDF digital wallet pilots
UNCDF collaborated with UNDP to launch a pilot in March 2022. The pilot digitizes payments made by international NGOs using six different digital payment solutions across Afghanistan. USAID research shows governments could bring more than 35 million adults into the formal financial sector through digital public sector wage payments.
FCDO and UNDP support for digital public infrastructure
FCDO’s Digital Development Strategy plans to help at least 20 partner countries transform their national digital services by 2030. This transformation will happen through improved Digital Public Infrastructure. UNDP leads countries in designing, implementing, and governing their DPI through initiatives like the 50-in-5 Campaign.
Financial inclusion committees and national strategies
The UK Financial Inclusion Committee unites representatives from government, industry, and third sector to remove barriers to financial access. The UK will publish its first National Financial Inclusion Strategy by the end of 2025, following this successful model.
Public–private partnerships in fintech development
IFC helps governments create strategic collaborations with the private sector through well-structured PPPs that extend access to underserved areas.
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