Financial Inclusion Insights

Black-owned banks and credit unions have long been critical pillars of economic empowerment for Black communities across the U.S. These institutions, known as Community Development Financial Institutions (#CDFIs) and Minority Deposit Institutions (#MDIs), emerged as safe havens for Black Americans when larger banks excluded or marginalized them. Today, they continue to play a pivotal role in closing the #racialwealthgap by providing access to capital and fostering financial inclusion. Through my work as a co-lead of Southern Communities Initiative (SCI), I’ve seen how CDFIs and MDIs help alleviate the economic inequities that persist in Black and other underrepresented communities. SCI is committed to modernizing these financial institutions by improving their access to technology and resources. We aim to boost their capacity to issue more capital, support small business owners and grow generational wealth in historically underrepresented areas. As we push for systemic change, I encourage everyone to explore and support Black-owned banks and credit unions, as highlighted by Business Insider. By choosing to bank with these institutions, we can collectively invest in the economic well-being of our communities and work toward a more equitable future. https://bit.ly/40kv2IV

In much of the world, digital financial tools are a daily reality—used to process paychecks, pay for dinner, buy groceries, and more. But 1.4 billion adults in low- and middle-income countries still lack access to these tools.    This isn’t just an inconvenience for them; it's a barrier to economic growth and empowerment. According to a 2023 UN analysis, digital public infrastructure—including digital ID, payments, and data exchange—could accelerate GDP growth in these countries by 20 to 33 percent.    That’s where Mojaloop Foundation comes in: Their open-source software makes it possible for countries to build inclusive digital payment systems that allow anyone with a mobile phone to send and receive money securely, instantly, and affordably. This has the potential to drive economic inclusion—and open the doors to financial freedom—for billions.

In 2021, I became the first woman to head a unicorn in Israel, AKA Startup Nation. In many parts of the world, women are excluded from even the most basic financial services, so leading a fintech company is far from their reality. United Nations data estimates that 3.8 billion women live in the world, 50% of which are adults. According to the World Bank’s Global Findex Database, 1.4 billion of those 1.9 billion adult women, are unbanked. That’s 73.65%. Visit that statistic again. It represents a disturbing gender gap in financial access, with women being far less likely than men to have bank accounts or access formal financial services. This financial exclusion has personal impact. It diminishes women’s economic empowerment by restricting access to education and limiting their potential for personal growth and independence. It makes women more financially dependent, and therefore, more vulnerable. There's economic impact, too. Research by McKinsey highlights the economic loss due to financial exclusion of women, noting that closing the gender gap in labor force participation could add trillions to global GDP. Financial inclusion isn’t just a matter of equality – ensuring the same opportunities for all. It’s a matter of equity - ensuring women have the tools and access they need to fully participate in the global economy. That’s where technology enters the picture to level the field. The rise of mobile banking is a great example of innovation enhancing financial inclusion. According to a report by the International Finance Corporation, mobile money accounts are more popular among women in regions like Sub-Saharan Africa, where access to traditional banking is limited. Various fintechs provide financial literacy resources, helping women understand financial products, budgeting, and saving strategies. Other solutions include AI-driven platforms that offer personalized recommendations and advice, empowering women to make informed financial decisions. Aside from personal apps and solutions, fintechs can facilitate community-based lending and saving initiatives, allowing women to support each other through group savings or microfinance schemes, fostering a sense of solidarity and shared purpose. This International Women’s Day’s theme is "accelerate action". In my mind, nothing accelerates action like innovation. As we mark International Women's Day, let’s advocate and innovate to enhance financial inclusion for women worldwide. #IWD2025 #financialInclusion Papaya Global

The "Ripple Effect: The Macroeconomic Impact of Small Business Lending" report highlights the critical role of mission-driven Community Development Financial Institutions like Accion Opportunity Fund. #CDFIs are mission-driven lenders that provide affordable financial services and loans to underserved communities, fostering economic growth and financial inclusion. For every $1 invested in small businesses, over $2 is generated annually in new taxes, spending, and wages across key states. This creates a lasting economic impact, supporting suppliers, employees, and customers. Over 90% of AOF borrowers remain in business 1-2 years post-loan, reinforcing community economic vitality. AOF’s lending generates $2.05 in additional annual economic activity per dollar invested, showcasing the significant ripple effect of their loans. Although effective, CDFIs struggle to meet high demand. I've previously posted on the Federal Reserve Bank of New York's suggestion for increasing funding, which could help bridge this gap and better support women and POC entrepreneurs. For links to "Ripple Effect: The Macroeconomic Impact of Small Business Lending" and my post on how the FRBNY suggests increasing funding to CDFIs see comments.

While unbanked rates in the US has improved — from 7% in 2015 to 5.4% in 2019 and 4.3% in 2023 (a historical low), nuances remain: the unbanked rates vary across states and remain high for some demographic groups. A new study from the Federal Reserve Bank of Philadelphia reveals interesting findings: 💰 Income remains the most significant differentiator:  Those earning under $15k annually are 13 times more likely to be unbanked compared to households earning over $75k. 🌐 Lack of digital access and non-citizen immigrant status are both associated with significantly higher likelihood of being unbanked. So ... what are some of the things that can be done? 🤝 Bridge the digital divide in rural and urban areas 📚 Enhance financial literacy 🏦 Increase availability of more affordable banking options (e.g. Bank On) ➡️ "The challenge of bringing households into the banking system is somewhat inseparable from the broader challenge of fostering inclusive economic growth. The results also suggest that further progress in financial inclusion may be tied to progress in digital inclusion and on addressing challenges faced by the expanding, foreign-born non-citizen population." 💫 As I often say: There is no true financial inclusion without digital inclusion. #FinTech #FinancialServices #FinancialInclusion #BankingIndustry

Africa fintech company M-KOPA with over 5 million customers across Kenya, Uganda, Nigeria, Ghana and South Africa has reached another milestone with an affordable branded smartphone Some impressive points include: 📱 1 Million Devices Sold—Smartphones as Financial Lifelines M-KOPA has sold over 1 million branded smartphones in just 12 months, embedding financial services like credit, insurance, and device protection directly into the hardware. 🏭 Local Manufacturing, Pan-African Impact With Africa’s largest smartphone factory in Nairobi, M-KOPA has created 400+ jobs and slashed Kenya’s import bill—proving that local assembly can drive scale and affordability. 💸 Fintech Innovation Meets Daily Earners: These devices aren’t just tools—they’re gateways to income generation, credit-building, and financial inclusion for millions of underbanked Africans across 5 countries #africa #fintech #payasyougo #credit #digitalinclusion #financialinclusion #jobcreation #africameansbusiness #africarising #theafricawewant You can read more here https://lnkd.in/dZNYZvYN c/o Tech in Africa c/o M-KOPA

As we advance toward a more inclusive digital future, the newly launched Global Findex 2025 report highlights how digital tools are reshaping access to financial services worldwide. Here’s what’s changing: • 8 in 10 adults now have access to a financial account, up from just 50% in 2011. 71% in developing economies now own a financial account. • 42% in developing countries are making digital payments, up from 35% in 2021, helping more people access savings, credit, and build financial security. • 2 billion women now own smartphones. That is over half of all users worldwide. Connectivity is the first step to financial access. These trends reinforce our focus on closing the digital divide by building secure, inclusive digital public infrastructure that empowers people and supports opportunity. Explore the full report: globalfindex.worldbank.org

E-money has allowed millions to access financial services, facilitating secure money transfers, payments, and savings without needing a bank account. Access to digital payments in turns leads to increased entrepreneurship, small business growth, but also greater women agency and economic empowerment. It also increase resiliency, and can augment the targeting effectiveness and efficiency of government transfers. Overall, it can be an on-ramp towards greater prosperity for many excluded and vulnerable groups. But to unleash this potential while ensuring financial stability, e-money policies and regulations need to provide the right balance between i) ensuring strong consumer protection and safeguards to build trust and foster uptake of e-money, and preserve stability, and ii) providing room for competition among various bank and non bank e-money providers, and foster data-driven innovation and inclusion. To get there, countries need a strong inclusive Digital Public Infrastructure, but they also need four basic regulatory enablers: risk-based e-money regulation and supervision, tiered agent network regulation, strengthened consumer protection, and a data-sharing scheme like open finance to enable customers to leverage their e-money data trails. Thank you Gita Gopinath, International Monetary Fund, Alvin Hilaire, Central Bank of Trinidad and Tobago, Alvaro Gonzalez Ricci, Bank of Guatemala, Dominique Desruelle for the great conversation at the IMF Annual Meetings 2024!

It has been a hard day. But, even on days like today, I am bullish because I stay focused on the transformative power of the technology rather than the volatility of individual assets. We are building a safer financial system that is so much more than price fluctuations - as much as they hurt! 😞 Let's stay focused! Here is what we are building: ⛓️ Security: Blockchain’s decentralized structure and cryptographic security protocols ensure that data is tamper-proof and transactions are secure. 👀 Transparency and Traceability: Every transaction on a blockchain is recorded and immutable, providing a transparent and verifiable history of all activities. With the use of blockchain intelligence like TRM Labs, law enforcement, national security agencies, and compliance professionals can conduct better, more efficient investigations into fraud and financial crime. 💰 Efficiency and Cost Reduction: By enabling direct peer-to-peer transactions and eliminating intermediaries, blockchain reduces processing times and transaction costs. This is particularly beneficial for cross-border payments and trade finance, where traditional systems are often slow and costly. 💻 Decentralization: Blockchain’s distributed ledger technology removes the need for a central authority, ensuring no single point of failure. This decentralization fosters a more resilient financial ecosystem and empowers individuals by giving them control over their assets. 📉 Data Integrity and Immutability: Blockchain ensures that once data is recorded, it cannot be altered or deleted. This immutability guarantees the accuracy and reliability of financial records, which is essential for audits and regulatory compliance. 🍃 Sustainability: With the advent of more energy-efficient blockchain protocols, the technology is becoming more sustainable. This addresses environmental concerns while maintaining the security and efficiency of financial transactions. 🌎 Financial Inclusion: Blockchain opens up access to financial services for the unbanked and underbanked populations worldwide. By lowering barriers and reducing costs, it provides opportunities for financial participation and economic growth in underserved regions. 🤝 Payments and Remittances: Blockchain enables faster, cheaper, and more transparent cross-border payments and remittances. This is especially beneficial for migrant workers sending money back home, ensuring more of their hard-earned income reaches their families. ⛈️ Humanitarian Relief In times of crisis, blockchain can facilitate the swift and transparent distribution of aid. By ensuring that funds are used as intended, it enhances the effectiveness of humanitarian relief efforts and builds donor confidence. The crypto ecosystem is so much more than the volatility of the market. Focus on the tech and never forget what we are building together. #cryptoverse

By the end of this decade, 10% of global GDP will be stored and traded via blockchains, with the tokenization market projected to reach $16 trillion, according to EU Blockchain Observatory and Forum. But beyond these impressive figures lies something more profound: A fundamental shift toward financial inclusion. ⚡ Traditional barriers to investment are falling. Assets once reserved for the wealthy few are becoming accessible to many through fractional ownership. One example: Archax uses the Hedera network to allow anyone to invest in a wide variety of tokenized RWAs, including commodities, funds, equities and bonds. ⚡ Geographic limitations are dissolving. An investor in Lima can now own a piece of prime real estate in New York with minimal friction. ⚡ Entry thresholds are shrinking. Instead of needing hundreds of thousands to invest in commercial property, tokenization allows participation with smaller amounts. This new technology promises to create pathways to economic participation for millions who were previously excluded from traditional investment opportunities. The revolution isn't coming. It's already here.