The 2025 Global Findex report, a comprehensive database on global financial inclusion, paints a picture of significant progress interspersed with persistent challenges. A key highlight is the surge in formal saving across developing nations, with 40% of adults now utilizing formal financial services like bank accounts, a remarkable 16-percentage-point increase since 2021. This represents the fastest growth rate in over a decade and is largely attributed to the proliferation of mobile phone technology, revolutionizing financial habits in low- and middle-income countries. Specifically, 10% of adults in these economies now employ mobile money accounts for saving, a five-point jump from 2021. Sub-Saharan Africa witnessed particularly impressive growth, with formal saving increasing by 12 percentage points to encompass 35% of adults. This progress underscores the transformative potential of financial inclusion, empowering individuals and bolstering overall economic development.
The increased access to financial services is undeniably a global phenomenon. The 2025 Findex report reveals that nearly 80% of adults worldwide now possess a financial account, a dramatic increase from just 50% in 2011. This signifies a major milestone in the pursuit of financial inclusion, offering billions more people the opportunity to participate in the formal financial system. This progress is not just about saving; it extends to borrowing, making payments, and engaging in other financial activities that contribute to economic stability and growth. The expansion of digital financial services, particularly through mobile phones, has been a key driver of this trend, offering convenient and accessible solutions for individuals in even the most remote regions.
However, the picture is not entirely rosy. Despite the strides made, significant gaps remain. Approximately 1.3 billion adults worldwide still lack access to basic financial services. Alarmingly, around 900 million of these individuals own mobile phones, including 530 million with smartphones, indicating a substantial, yet untapped, potential for further expansion. Bridging this digital divide remains a critical challenge. It requires concerted efforts to address issues like digital literacy, infrastructure limitations, and affordability of services. Furthermore, regulatory frameworks need to be adapted to support the growth of digital finance while ensuring consumer protection and financial stability.
The report also highlights the importance of focusing on specific demographics, particularly women. While progress has been made in closing the gender gap in financial inclusion, disparities persist. Globally, 77% of women have financial accounts compared to 81% of men. However, in low- and middle-income countries, women’s account ownership has nearly doubled since 2011, reaching 73% in 2024. This demonstrates the potential for targeted interventions to accelerate progress towards gender equality in financial access. Empowering women economically through financial inclusion has far-reaching benefits, not only for individual women but also for their families and communities, contributing to broader social and economic development.
Furthermore, the increasing adoption of digital payments represents another significant trend. In 2024, 42% of adults in low- and middle-income countries made digital merchant payments, either in-store or online, compared to 35% in 2021. This shift towards digital transactions is fueled by several factors, including the convenience, speed, and security offered by these platforms. Governments are also increasingly leveraging digital channels for disbursing transfers and wages, which reduces the risks of theft and improves accountability. This transition to digital payments is crucial for modernizing economies and promoting greater financial transparency.
Finally, while the growth of digital finance offers immense opportunities, it also presents new risks. Among the four billion adults in developing economies with mobile phones, only about half use passwords to secure their devices, making them vulnerable to fraud and theft. This underscores the need for robust consumer protection measures, including educating users about online security best practices. Investing in secure and efficient instant payment systems, similar to India’s UPI and Brazil’s PIX, is also crucial. Strengthening regulatory frameworks and promoting financial literacy are essential to ensuring that the benefits of digital finance are realized while mitigating the associated risks. The future of financial inclusion hinges on striking the right balance between fostering innovation and safeguarding consumers in this rapidly evolving landscape.
