Takeaways From The Global Financial Index Report 2021.


The technological revolution, and the accelerated adoption of digital solutions as a result of the COVID-19 pandemic, are transforming access to finance. As the 2021 edition of the Global Findex database shows, 71 percent of adults in developing economies now have a formal financial account, compared to 42 percent a decade ago when the first edition of the database was published. And the gap in access to finance between men and women in developing economies has fallen from 9 percentage points to 6

76% of adults around the world now own an account, could be a bank account, mobile money account, SACCO,mutual funds etc.

33% of adults in sub Saharan Africa have a mobile money account. We have 1.4 Billion unbanked adults around the world, around 600 Million are in India. Lack of money and one family member owning an account being the main reasons for lack of an account. 2/3 or 66.6 % of adults world wide make or receive digital payments. Since the pandemic, 41 % of adults made their first digital payment. 30% of adults in sub Saharan Africa are still unbanked. 100 million adults in sub Saharan Africa lack IDs meaning they can't meet the basic Kyc requirements to open an account. The three main issues that customers look at when subscribing for a mobile money service are; 1. Safety 2. Privacy 3. Ease-Speed ( #ux / #ui ) Access and usage are the base lines for financial services providers. #interoperability and low fees are the competitive edge moving forward. #mobile money has evolved in this order ;. 1. Cash in/cash out - building trust due to cash dominance (2007-2013) 2. 1+ pay bill + airtime purchase+ buy goods (2011-2016) 3. 1+2+ Credit + savings ( 2013-2020) 4. 1+2+3+ virtual cards ( 2020- Present)- Building the digital ecosystem, a rise in super apps. The financial rails anchoring on banks and the digital payments infrastructure ( fintech's ) are driving financial inclusion on the digital frontier. Number of transactions and volumes to achieve scalability are vital for businesses to drive universal financial inclusion. Customer support and the need for human touch is still key, customers want to talk to someone when they have issues. Building financial services platforms (web and apps) for the smartphone is building for the future, as internet penetration keeps growing and more affordable mobile devices come into market, this are strong fundamentals on the opportunity that lies ahead for financial players. End

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