Analysis: How Fintech Impacts Financial Inclusivity
By Jakob Rost
According to the World Bank, financial inclusion is one of the main ways to monitor progress in reducing social inequality, the global spread of economic well-being and related issues, such as gender equality.
The Washington-based institution provides statistics on the issue via its Global Findex Database every three years. The latest edition reports 76% of adults globally to have an account at a bank, other financial institution or with a mobile money provider—up from 68% in 2017 and 51% in 2011.
Around the world, however, there are discrepancies from country to country. In the U.S., 94.95% of people 15 or older have an account, while the figure is 51.76% and growing in Indonesia, fueled by one of the most dynamic economies in the world.
Is fintech helping to improve financial inclusion? In short, yes. A recent study by the Cambridge Centre of Alternative Finance (CCAF), the World Bank Group and the World Economic Forum, based on data from 1,448 fintechs operating in 192 areas worldwide, reports that many fintechs are progressing in financial inclusion within their customer base.
Photo courtesy of lau rey.