Financial inclusion spans savings, credit, payment services, insurance, and investments. Many low-income households and small businesses, particularly in developing countries, remain excluded or underbanked, relying mainly on cash transactions that expose them to risks and hinder their saving and investing activities. Credit access is often limited or costly, pushing many to informal lenders or expensive formal options. Digital finance—financial services delivered via mobile and internet platforms—is central to expanding access.
Key Takeaways
- Over a billion of adults have no access to finance: According to the World Bank’s Global Findex Database, 2025, about 1.3 billion adults globally do not have an account with a financial institution. This is over 20% of the global adult population. A large portion of these individuals live in developing economies, mainly in Africa, South Asia, and South America. Most of them are low-income households, women, minorities, and the elderly.
- Micro, small and medium enterprises (MSMEs) are also facing a significant financing gap: MSMEs is another sector that faces under banking and constrained access to finance. According to the MSME Finance Gap, unmet global financing need for MSMEs is about $5.7 trillion as of 2019. Over 130 million MSMEs in developing economies face financing exclusion.
- Financial inclusion can reduce a provider’s concentration risks, improve efficiency and profitability: Banks and insurance companies can diversify their asset and liabilities bases, limiting concentration risks, often restraining revenue and profit volatility. Financial inclusion’s reliance on digital platforms can lead to efficiency benefits, supporting stronger profitability. Financial inclusion also reduces income and gender inequality. Main risks include higher credit and cybersecurity related risks.
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