Financial inclusion has emerged as a cornerstone of economic empowerment and social development worldwide. While remarkable strides have been made, significant gaps remain.

This article explores the current landscape, ongoing challenges, and future directions for ensuring that everyone can benefit from financial services.

Global Progress and Regional Variations

Over the past decade, the financial inclusion sector has witnessed dramatic progress over the past decade. Globally, 79% of adults now hold an account at a bank, similar institution, or mobile-money provider—up from 62% in 2014.

However, regional disparities highlight the uneven pace of growth.

• East Asia and the Pacific: 83% account ownership
• South Asia: nearly 80%, with India at 90% ownership
• Latin America and the Caribbean: 77%
• Sub-Saharan Africa: 62%
• Middle East and North Africa: 53%

The Persistent Unbanked Crisis

Despite these advances, 1.3 billion adults remain over half of the unbanked population. Of these, 650 million are concentrated in just eight countries, highlighting the need for targeted interventions.

• Bangladesh
• China
• Egypt
• India
• Indonesia
• Mexico
• Nigeria
• Pakistan

Additionally, 1.6 billion people either lack accounts or hold inactive ones, especially in rural and hard-to-reach regions.

Narrowing the Gender Gap

As of 2024, 73% of women in low- and middle-income economies have their own financial accounts, a 23% increase over the past decade. The gender gap in account ownership has narrowed to 5 percentage points, down from 9 points historically.

Some countries in South Asia and East Asia have completely eliminated this gap, demonstrating that policy focus and inclusive design can yield meaningful outcomes and financial health.

The Digital Transformation

Mobile-phone technology has become a driving force in expanding financial access. In developing economies, 10% of adults now use mobile-money accounts for saving, up 5 percentage points since 2021.

Yet the digital divide persists: 16% of adults lack access to mobile phones, making them harder to include in digital financial services.

The Savings Revolution

The pace of growth in formal savings has been unprecedented. In 2024, 40% of adults in developing countries saved in a financial account—a 16 percentage point increase from 2021, the fastest rise recorded in over a decade.

Sub-Saharan Africa saw formal savings jump to 35% of adults, up 12 points. Still, nearly half of adults in developing economies report they could not cover one month’s expenses in an emergency.

A Philosophical Shift in the Sector

The sector is moving beyond a focus on access metrics toward measuring real-world impacts. Initiatives like CGAP’s Financial Inclusion 2.0 emphasize integrated goals such as resilience, equity, and climate action.

There is growing recognition that finance should serve as a supporting layer, enabling outcomes in healthcare, education, and sustainable livelihoods rather than being an end in itself.

Key Challenges and Barriers

Persistent obstacles continue to limit financial inclusion gains. Fragility, low digital literacy, and gender-specific vulnerabilities all hinder progress, especially in conflict-affected and low-income regions.

• Infrastructural gaps in rural and fragile zones
• Economic and regulatory constraints on digital payments
• Social norms restricting women’s financial autonomy

Future Directions and Strategic Focus

The next phase of financial inclusion demands reimagined success metrics that track resilience and empowerment rather than mere account numbers. Strategies will need to incorporate macroeconomic stability, consumer protection, and digital public infrastructure.

The Center for Financial Inclusion’s 2025 strategy aims to link financial services with broader development goals, from climate resilience to sustainable agriculture.

Insights from Key Stakeholders

World Bank President Ajay Banga highlights the need for digital IDs, social protection with digital transfers, and regulatory reform to make digital finance effective and inclusive.

Bill Gates applauds the growth of financial tools that enable individuals to invest in their futures and build resilience, calling it addressing barriers to digitization is essential for sustainable systems.

Accion CEO Michael Schlein warns that although connecting people to financial services is significant, 1.6 billion remain underserved or excluded, emphasizing the need for deeper digital adoption and innovative business models.

Conclusion

Financial inclusion is at a pivotal moment. With clear data, evolving philosophies, and committed stakeholders, the sector stands poised to transform lives by shift from access to active usage and deliver tangible outcomes. By addressing persistent barriers and aligning with broader development goals, the vision of universal financial inclusion can become a reality.