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Dormant Bank Accounts: How to Unlock Their Value
- BRANDi
- 11 hours ago
- 2 min read
The expansion of financial accounts worldwide is a remarkable achievement. However, according to the World Bank’s report, the Global Findex Database 2025, ownership, or the number of accounts is only half the story. Millions of people who now hold an account remain financially inactive, with little or no regular transactions. The data shows that inactivity is particularly pronounced in low- and middle-income countries, where cash continues to dominate daily life. This points to a critical gap: access without usage fails to unlock the true benefits of financial inclusion, from savings and investment to credit-building and resilience in times of crisis.
WHY MANY REMAIN INACTIVE
Several factors help explain this persistent inactivity. For many, irregular or low income means they simply have nothing to deposit. Others lack confidence in formal financial systems, perceiving banks and digital wallets as costly, complex, or unsafe. In many communities, cash remains the preferred option, as it is familiar, tangible, and widely accepted, whereas accounts can feel abstract or burdensome. These barriers reflect not only economic constraints but also psychological and cultural preferences, making account usage a more complex challenge than account ownership.
BRINGING ACCOUNTS TO LIFE
The path forward lies in making accounts more relevant and trustworthy. Businesses and financial institutions must prioritize improved product design: low-fee accounts, flexible savings tools, and services tailored to women, rural residents, and informal workers. At the same time, public-sector actors must strengthen financial literacy programs so that people not only understand how to use digital accounts but also see their value in real life. Building confidence is equally critical: robust consumer protection, fraud safeguards, and clear communication about digital security can help transform hesitant account holders into active users.
Encouraging usage is about moving from financial access to financial empowerment. The next frontier for inclusion is not just opening accounts, but ensuring they are actively used to save, borrow, and transact. Governments and businesses that invest in user-friendly design, literacy, and trust-building will unlock the real promise of digital finance: stronger household resilience, deeper participation in the economy, and more inclusive growth. Accounts that sit dormant are missed opportunities. Accounts that are used well, however, can change lives.