Financial Inclusion in the Global South
How mobile money, digital banking, and fintech are bringing billions of unbanked people into the financial system.
The Unbanked Billions
As recently as 2011, 2.5 billion adults worldwide had no bank account. They saved by hiding cash under mattresses, borrowed from moneylenders at extortionate rates, and sent remittances through informal and expensive channels. By 2022, the number of unbanked adults had fallen to roughly 1.4 billion -- a dramatic improvement driven largely by mobile money and digital financial services.
Financial exclusion is not just an inconvenience; it is a development trap. Without a bank account, people cannot safely save, access credit for productive investment, insure against risk, or receive government transfers efficiently. Women, rural populations, and the poorest households are disproportionately excluded. In sub-Saharan Africa, only 55% of adults have a bank or mobile money account, compared to over 95% in high-income countries.