Digital payment and financial tools enabled by mobile internet are becoming a powerful force to expand access to financial services in developing economies in Africa to reach the unbanked population.
April 09, 2021 | Andy Jury- Some 400 million adults in Africa do not have access to financial services
- Migrant workers’ remittances reached $85 billion in 2019
- Mobile money accounts expected to grow to 475 million (39% of the sub-Saharan population) by 2025
Developments in technology provide access to a wide range of financial services such as savings accounts, money transfers, and loans that make a positive difference in the lives of people in developing economies. Digital financial services are becoming a potent force that brings more people closer to a financial inclusion goal.
400 million adults in Africa lack access to financial services
The World Bank Global Findex database showed that there are 1.7 billion unbanked adults globally, of which 75% own a mobile phone that could give them access to financial services.
The Women's Digital Financial Inclusion in Africa reported that at least 400 million African adults lacked access to formal financial tools. Barriers to financial inclusion include the inability to prove one’s identity, cited by 20% of the unbanked, 22% said they live far from financial institutions, and about 16% claimed they distrust the financial system.
When informal cash-out services become less accessible to communities, for instance, people could rely on intuitive digital financial services platforms to conduct basic banking transactions like sending and receiving money during unprecedented times. Moreover, after using digital channels for the first time many first-time users discovered that they can also fulfil their other financial needs simply by following the user journey and providing ongoing feedback.
Remittance flows in Africa
The United Nations Economic Commission for Africa said one out of five people in Africa sends or receives international remittances. Remittance flows have nearly doubled since 2009, with migrant workers sending...
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Digital payment and financial tools enabled by mobile internet are becoming a powerful force to expand access to financial services in developing economies in Africa to reach the unbanked population.
April 09, 2021 | Andy Jury- Some 400 million adults in Africa do not have access to financial services
- Migrant workers’ remittances reached $85 billion in 2019
- Mobile money accounts expected to grow to 475 million (39% of the sub-Saharan population) by 2025
Developments in technology provide access to a wide range of financial services such as savings accounts, money transfers, and loans that make a positive difference in the lives of people in developing economies. Digital financial services are becoming a potent force that brings more people closer to a financial inclusion goal.
400 million adults in Africa lack access to financial services
The World Bank Global Findex database showed that there are 1.7 billion unbanked adults globally, of which 75% own a mobile phone that could give them access to financial services.
The Women's Digital Financial Inclusion in Africa reported that at least 400 million African adults lacked access to formal financial tools. Barriers to financial inclusion include the inability to prove one’s identity, cited by 20% of the unbanked, 22% said they live far from financial institutions, and about 16% claimed they distrust the financial system.
When informal cash-out services become less accessible to communities, for instance, people could rely on intuitive digital financial services platforms to conduct basic banking transactions like sending and receiving money during unprecedented times. Moreover, after using digital channels for the first time many first-time users discovered that they can also fulfil their other financial needs simply by following the user journey and providing ongoing feedback.
Remittance flows in Africa
The United Nations Economic Commission for Africa said one out of five people in Africa sends or receives international remittances. Remittance flows have nearly doubled since 2009, with migrant workers sending...
Categories:
Keywords: