26 April 2017

How financial inclusion will look like in 2025

The growing risk of digital divide and disruption among digital ecosystems are among the main financial inclusion trends for 2025. This is what a research by the Consultative Group to Assist the Poor (CGAP) shows about the main forces which will drive financial inclusion in the next years. The study is conducted based on series of global workshops in Accra, Bangalore, London and Washington, D.C., among financial service providers, donors, media organizations, regulatory bodies, etc. Based on the research the organization will support the development of their five-year strategy which will be launched in 2018.

The study claims that there is a risk for specific segments (e.g. women, crisis-affected people, and people living in rural areas) to become more excluded from the financial economy than they are today. This might be the threat, if the digital infrastructure does not reach certain areas, it is not adapted to the education and language capabilities of consumers, and smartphones are not yet affordable for all people. The resolution of this problem lies in putting more investments to address these gaps or working on alternative solutions to reach these groups.

Another trend is related to the continued disruption of digital ecosystem. According to the research, financial services providers will not look the same in the future. Tech giants such as Google, Amazon and Facebook are likely to become trusted financial service providers and are expected to continue integrating financial services into their networks. This will reflect on banks which will be used to hold deposits and move money between newly trusted financial services providers, such as social media companies and fintechs.

CGAP is also emphasizing on the data ownership and control that could make or break solutions for poor people. Governments will have a crucial role in regulating the ownership of data, control and security and they will have the challenge to handle these regulatory needs in the rapidly changing environment.

To learn more about the trends and the future of financial inclusion, read the full research here.

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