In today’s world, having access to financial tools is not just a convenience—it’s a necessity. However, around 1.4 billion adults worldwide remain unbanked, meaning they lack access to financial institutions or non-bank providers. Without basic financial services, such as bank accounts, credit cards, or even mobile payment apps, people face major limitations in managing money, paying bills, and accessing loans or investments. These barriers to financial inclusion contribute to economic inequities and missed opportunities.
Thankfully, the rapid evolution of digital financial technology offers hope. Mobile phones, once seen only as communication tools, are now central to managing money and advancing financial inclusion. With about 6.7 billion smartphones in use worldwide by 2023—about 69% of the global population—many barriers are being broken down. The ability to move money safely and quickly is becoming easier, and innovations like mobile wallets and real-time payments are already transforming lives.
According to the World Bank, financial technology has already enabled 1.2 billion previously unbanked adults to access financial services in the past decade. This is a major leap toward achieving global financial equity. In particular, regions like Sub-Saharan Africa, South Asia, and East Asia have seen notable advances through mobile money platforms.
Global Examples of Financial Inclusion
Kenya: M-PESA’s Revolutionary Impact
One standout example of how technology is promoting financial equity is M-PESA, a mobile money service that has dramatically improved financial inclusion in Kenya. By enabling people to send and receive money, pay bills, and access loans directly via mobile phones, M-PESA has brought financial services to millions who previously had no access to banks. Notably, a 2016 MIT study revealed that M-PESA helped 194,000 households escape poverty over six years, providing them with the means to save money, make purchases, and receive government payments. This was a game-changer for the Kenyan economy, fostering both growth and stability.
Closing the Financial Gender Gap: Tala
In addition to serving underserved populations, fintech is also making strides toward gender equity in financial access. Tala, a global fintech company, is using alternative data to help assess creditworthiness, enabling microloans for people in emerging markets such as Mexico, India, and the Philippines. This is especially crucial for women in developing countries, where access to credit remains a major barrier to financial independence. For example, 62% of Mexican women have limited or no access to formal financial services, making them a minority among banking customers. However, 50% of Tala’s lending portfolio in Mexico is directed towards women, closing this gap and promoting economic empowerment.
Real-Time Payments: Empowering Underserved Americans
In the United States, the rise of Real-Time Payments (RTP) is helping underserved communities by facilitating the immediate movement of money. For workers living paycheck to paycheck, especially those in hourly positions, the speed at which they receive their wages can make the difference between financial stability and crisis. RTP platforms, like those created by The Clearing House, allow employers to pay employees instantly, ensuring bills are paid on time and alleviating financial stress. This advancement is especially important at a time when 27% of Americans report having no emergency savings.
The Path Forward: Bridging the Gap
While these advancements are promising, there is still much work to be done. According to the World Bank, 720 million people—or 9% of the world’s population—still live in poverty, without access to essential financial services. Yet, the widespread adoption of technology offers a clear path forward. By continuing to innovate and expand access to financial tools for everyone—whether they are in rural Kenya, urban Mexico, or underserved neighborhoods in the U.S.—we can work toward true global financial equity.
The potential of digital financial services to break down barriers, create opportunities, and foster financial inclusion is immense. As CEO of DailyPay, I am committed to advancing technology that lifts people out of poverty, empowers individuals, and creates a more equitable global financial system.
Conclusion: Technology as a Catalyst for Change
The promise of financial equity is becoming increasingly achievable thanks to the ongoing innovation in financial technology. By providing access to vital financial services through mobile phones, real-time payments, and alternative credit scoring, we can create a more inclusive global economy. As these technologies continue to evolve and expand, they have the power to transform lives, reduce inequality, and help bridge the gap between the wealthy and the underserved. The time to act is now, and technology is leading the way toward a more financially equitable world.
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