Financial Inclusion: a Much-Needed Item on the Developmental Agenda

In today’s global economy, being financially excluded often means being left behind. Yet, as of 2023, 1.4 billion adults still lack access to formal financial services, while 345 million microenterprises still operate informally, i.e., without any oversight. These highlight a massive gap in the global financial system, and the following numbers illustrate the reason why. According to the Global Partnership for Financial Inclusion (GPFI), a multinational platform established to uplift financial equity, MSMEs, or micro, small, and medium enterprises, account for 90% of businesses and over 70% of jobs worldwide. What this means is poignant: financial access is not only a social equity issue but also a development imperative, and financial inclusion must be treated not as an add-on but as a foundation for resilient, equitable growth.

BRINGING FINANCE TO THE FRONTIER

According to experts who convened at the GPFI's 2024 conference in Seoul, with today's technology being the leading enabler, there is no excuse for not opening a new frontier for inclusion. This is especially true when it comes to fintech solutions, from mobile money to micro-loans, which are helping underbanked populations access credit, savings, and insurance. Initiatives such as U Bank in Pakistan (the country's major microfinance banking system), which has served 400,000 rural clients, and Erada in Egypt, which combines microfinance with digital education, show that inclusive finance can be both scalable and sustainable. Still, the GPFI stresses that closing the gap will require more than just mobile apps; it demands infrastructure investment, interoperable payment systems, and regulatory innovation to ensure underserved populations can fully participate in the digital economy.

A JOINT AGENDA FOR GOVERNMENTS AND INDUSTRY

The takeaway for governments worldwide is clear: integrate financial inclusion into national development strategies and prioritize digital public infrastructure, such as e-ID and real-time payment rails. Meanwhile, the private sector, especially telecoms and tech companies, must embrace their role as enablers. With their reach, data capabilities, and innovation pipelines, firms can deliver tailored financial products at scale, provided they also invest in trust-building through local language support, transparent pricing, and community-based partnerships.

The next wave of progress will not come from pouring more capital into old models but from designing systems that recognize and empower people where they are. Financial inclusion enables everything else, whether it be entrepreneurship, education, healthcare, or climate resilience. For development finance to truly deliver in the 21st century, it must embrace inclusive finance as a cross-cutting enabler. If humanity succeeds, it will unlock the full potential of people and places that have long been overlooked; the time to act is now.

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