Financial Inclusion Approaches

🚀 Boosting Electronic Payment Adoption: Lessons from Tanzania, India, Brazil, and Algeria 🌍 Digital payments are reshaping economies, with emerging markets leading the way. Recent innovations from Tanzania, India, Brazil, and Algeria showcase transformative strategies for accelerating adoption and enhancing financial inclusion. Here’s how these nations are driving change: 🌟 4 Inspiring Strategies 1️⃣ Tanzania – Breaking Barriers with Fee Removal • By eliminating fees on card transactions, Tanzania is paving the way for a cash-lite economy, ensuring digital payments are affordable for consumers and merchants. • Takeaway: Removing financial barriers at the point of use is a simple yet powerful way to encourage adoption. 2️⃣ India – Scaling Through Subsidies • India’s UPI platform, backed by government subsidies, offers zero fees for consumers and most merchants. With over 8 billion transactions monthly, UPI has become a global benchmark for scale and accessibility. • Takeaway: Public investment in digital infrastructure can create a massive, inclusive payment ecosystem. 3️⃣ Brazil – Balancing Low Costs and Sustainability • The PIX system, centralized by Brazil’s Central Bank, provides free transactions for individuals and minimal fees (0.5%-1%) for merchants. This model ensures both affordability and system sustainability. • Takeaway: A modest fee for merchants can sustain growth while driving widespread adoption. 4️⃣ Algeria – Incentivizing Inclusion with Tax Relief • Launching DZ MOB PAY in 2025, Algeria plans to offer free payments for users and merchants. Banks will cover costs through tax offsets, aligning with the nation’s goals for modernization and financial inclusion. • Takeaway: Tax incentives can motivate private-sector participation and foster a modern, inclusive payment ecosystem. 🌍 What Emerging Economies Can Learn To build a thriving digital payment ecosystem, nations can: 1. Eliminate Cost Barriers: Ensure low or nonexistent fees for consumers and merchants. 2. Leverage Public-Private Partnerships: Share costs through subsidies or tax incentives. 3. Prioritize Infrastructure: Develop secure, interoperable systems that scale effectively while earning user trust. 4. Promote Awareness: Educate citizens, especially in underserved areas, to build trust and adoption. 🌟 The Vision for a Cash-Lite Future Affordable, inclusive, and innovative payment systems are the cornerstone of a cash-lite economy. Emerging markets can draw inspiration from Tanzania, India, Brazil, and Algeria to empower citizens, modernize financial systems, and unlock economic potential. 💡 What do you think? Could these strategies work in your country? Let’s exchange ideas and shape the future of payments together! #DigitalPayments #FinancialInclusion #EmergingMarkets #Tanzania #India #Brazil #Algeria #Innovation #CashLiteEconomy

The U.S. Treasury recently unveiled its National Strategy for Financial Inclusion. It’s packed with practical ideas to remove barriers to financial health and wealth-building. Here’s a snapshot of the key strategies Treasury proposes to improve financial inclusion: 1️⃣ Better Transaction Accounts and Payments: ▶️ Lower fees and reduced minimum balance requirements for checking and savings accounts. ▶️ Faster access to funds (real-time settlement and payments to avoid penalties and late fees). ▶️ Language accessibility for non-English speakers. ▶️ Read-only account access for those needing financial assistance. ▶️ Mobile banking branches for activities requiring in-person access (e.g., cash deposits). 2️⃣ Smarter Credit Underwriting: ▶️ Incorporating cash flow data, rental history, and utility/telecom payments to improve credit assessments. ▶️ Open banking rules to make switching banks easier and spur innovation in financial products. 3️⃣ Improved Restructuring and Forbearance Options: ▶️ Enhanced loan restructuring options to adjust payment terms, reduce interest rates, or extend repayment periods during financial hardships. ▶️ Short-term pauses on adverse credit reporting to credit bureaus during declared emergencies, such as natural disasters and pandemics. 4️⃣ Stronger Incentives for Savings: ▶️ Retirement accounts with features like automatic enrollment and limited penalty-free withdrawals for emergencies. ▶️ Rainy day funds designed to help individuals save specifically for emergencies, often linked to payroll deductions or account nudges to make saving easy and consistent. ▶️ Child savings accounts to build wealth from a young age. 5️⃣ Reduced Government Friction: ▶️ Simplified identity verification using municipal IDs, student IDs, and attestation letters to increase accessibility. ▶️ Streamlined processes for accessing tax credits and subsidies, like childcare and home energy assistance, by cutting red tape and reducing the burden of forms and documentation. ▶️ Free or low-cost tax filing options to make navigating tax season more affordable and straightforward. These are common-sense strategies to remove barriers that keep millions of Americans from building wealth and achieving financial security. https://lnkd.in/gRcqzJtV

Today at the Toronto Centre, we discussed how regulators can promote women financial inclusion by leveraging the benefits of financial innovation while addressing potential risks related to access, affordability, and fairness. Regulators play a key role in ensuring positive outcomes for women through several key strategies: 1. Set Vision and Targets: Develop National Financial Inclusion Strategies with clear goals for women's financial inclusion. 2. Promote Gender-Disaggregated Data (GDD): i) Collect and utilize GDD to establish strategies with clear targets and monitor progress; ii) Help financial institutions see the business case for serving women and tailor products to their needs. 3. Support Data-Powered Innovation: i) Encourage the development of inclusive digital public infrastructure, incl. interoperable payment systems and open finance, and ensure connectivity is equitable; ii) Promote digital delivery channels and use of agents to reach women. 4. Address Implicit Biases in Regulation: i) Ensure KYC processes are proportional and simplified where possible; ii) Review credit regulations to accommodate diverse signing authorities, loan types, and creditworthiness assessments; iii) Foster innovation through licensing regulations that support diverse providers and digital business models; iv) Enhance consumer protection to promote financial literacy, fair disclosure, protection against frauds and data risks, and customer redress mechanisms; v) Promote the role of women in the governance of financial institutions. 5. Encourage AI: Develop frameworks for the responsible and fair use of AI in financial services, emphasizing transparency, explainability, and accountability. By implementing these strategies, regulators can create a more inclusive financial system that addresses the unique needs of women and promotes their financial empowerment. Thank you May Abulnaga from the Central Bank of Egypt, Claudine Mensah Awute, PhD, from CARE, and Babak Abbaszadeh and Demet CANAKCI, M.A. Economics, from Toronto Centre.

When I first entered the blockchain space, I was drawn by a simple but powerful question: Could this technology eliminate barriers that keep billions economically disenfranchised? Today, I'm seeing that question answered with increasingly sophisticated use cases that make financial inclusion frameworks truly actionable. Three innovations stand out: 1. 𝗗𝗲𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘇𝗲𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 (𝗗𝗲𝗙𝗶) is revolutionizing access. By creating permissionless financial products accessible to anyone with an internet connection, DeFi removes gatekeepers who have traditionally determined who gets served. No more arbitrary minimums or geographic restrictions. Just open protocols that work the same for everyone. 2. 𝗚𝗮𝗺𝗲𝗙𝗶 is transforming financial education. By rewarding participation in gamified educational platforms, these systems make learning about finance engaging rather than intimidating. They create positive feedback loops that build both knowledge and assets simultaneously. 3. 𝗗𝗲𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘇𝗲𝗱 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗲𝗿𝘀 (𝗗𝗜𝗗𝘀) are redefining reputation. With DIDs, users own their digital identity, making their reputation portable and borderless. Credit scores, educational credentials, and financial history become assets that users control and can leverage across systems. — These aren't theoretical concepts. They're working solutions that are being implemented today. What excites me most is the shift from theoretical frameworks to practical applications. For years, we've understood what financial inclusion should look like. Today, blockchain is providing the tools to make it a reality. The beauty of Web3 is its ability to translate complex financial inclusion frameworks into real-world solutions. The technology exists. Now, it's about ACTION.

After reviewing more pitch decks these past few days, I see African fintech founders are still flogging the dead horse that is "banking the unbanked" as a lazy fundraising pitch. From Yaounde to Cape Town, it’s the same story, another mobile wallet, payments app, another promise to bring financial inclusion to the masses. Truth is: most Africans are not unbanked because they lack access; they’re unbanked because they lack income. A new app won’t change that. The Brutal Truth Lack of Disposable Income – People don’t need more fintech solutions; they need more money. Without increased economic productivity, most “financial inclusion” solutions remain useless. Broken Unit Economics – Many fintechs rely on unsustainable VC fueled growth, acquiring “users” who don’t generate revenue. Regulatory Capture & Infrastructure Gaps – Governments protect banks and telcos dominate mobile money. The real bottlenecks are systemic, not just about "access." Startups often underestimate how slow, expensive, and political it is to scale across markets. Real Problems & Better Solutions Income-Generating Fintech – Instead of just moving money, fintech should help people make money. Platforms enabling gig work, SME financing, and export-focused businesses can drive real financial inclusion. A fintech that helps informal traders access larger markets, rather than just helping them "save." Decentralized Credit & Alternative Lending – Traditional credit models don’t work in Africa. Instead: Use supply chain data, mobile behavior, and transaction flows to build more dynamic credit models. Integrate fintech into cooperative lending structures like tontines or village savings groups, where trust already exists. B2B Payments & Trade Infrastructure – Cross-border trade needs work, killing SME growth. Fix it: Build better escrow and invoice financing tools that help African businesses transact across borders securely. Verticalized Fintech in High-Impact Sectors – Fintech should power real economic activity, not just payments. Agritech fintech: Give farmers access to dynamic pricing, supply chain finance, and better insurance. Healthcare fintech: Enable embedded payments and credit for medical services, helping people afford care without predatory loans. Logistics fintech: Provide financing for truckers, warehousing solutions, and real-time supply chain support. Infrastructure-First Fintech – If power, internet, & ID verification are problems, solve those first. Payments without stable connectivity? Build USSD-based financial services. Weak credit infrastructure? Build platforms that help lenders pool risk and share credit data across borders. The era of cheap fundraising gimmicks is over. African fintech must shift from vanity metrics to real impact, solving income generation, trade inefficiencies, and credit access at scale. I'm tired of saying this, founders who build with these in mind won’t need to beg for funding; investors will come looking for them.

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

FATF 2025 Guidance: Financial Inclusion and AML/CFT – A Balanced Approach The Financial Action Task Force (FATF) has published its revised Guidance on Financial Inclusion and AML/CFT Measures (June 2025). The document provides practical direction for jurisdictions and financial institutions on how to design AML/CFT controls that facilitate, rather than hinder, financial inclusion. Key clarifications include: 🔹 𝗣𝗿𝗼𝗽𝗼𝗿𝘁𝗶𝗼𝗻𝗮𝘁𝗲 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗔𝗠𝗟/𝗖𝗙𝗧 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀 The FATF introduces the term “proportionate” in place of “commensurate” to ensure better alignment with practical implementation of the risk-based approach (RBA). Measures should be adjusted according to the level and nature of risk, not applied uniformly. 🔹 𝗡𝗼 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗰 𝗥𝗶𝘀𝗸 𝗖𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗕𝗮𝘀𝗲𝗱 𝗼𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗰𝗰𝗲𝘀𝘀 𝗦𝘁𝗮𝘁𝘂𝘀 The Guidance explicitly states that unserved or underserved persons in both developing and developed countries should not be automatically classified as low ML/TF risk. Likewise, they should not be automatically classified as high risk. Risk must be assessed using relevant, risk-based criteria. 🔹 𝗨𝘀𝗲 𝗼𝗳 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝗶𝗲𝗱 𝗗𝘂𝗲 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 (𝗦𝗗𝗗) FATF supports the use of SDD in cases of proven low ML/TF risk. Examples include basic accounts or low-value services where risk has been clearly assessed as low. 🔹 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗢𝗻𝗯𝗼𝗮𝗿𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗡𝗼𝗻-𝗙𝗮𝗰𝗲-𝘁𝗼-𝗙𝗮𝗰𝗲 𝗖𝗵𝗮𝗻𝗻𝗲𝗹𝘀 The Guidance recognises that digital and non-face-to-face methods are legitimate and effective for onboarding, provided that adequate safeguards are in place and risks are properly managed. 🔹 𝗔𝘃𝗼𝗶𝗱𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝗮𝗻𝗱 𝗗𝗲-𝗿𝗶𝘀𝗸𝗶𝗻𝗴 FATF continues to warn against “de-risking” entire sectors or population groups. Such blanket measures are inconsistent with the risk-based approach and can lead to increased use of informal, unregulated channels. 🔹 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻𝘁𝗼 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗥𝗶𝘀𝗸 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸𝘀 Jurisdictions are encouraged to incorporate financial inclusion goals into National Risk Assessments and AML/CFT strategies, ensuring consistency across regulatory objectives. The responsibility now lies with regulators and institutions to translate this guidance into measurable, inclusive outcomes.

𝐓𝐡𝐞 𝐭𝐞𝐫𝐫𝐚𝐢𝐧 𝐨𝐟 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 (𝐟𝐢𝐧𝐭𝐞𝐜𝐡) 𝐢𝐬 𝐫𝐞𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐭𝐫𝐚𝐣𝐞𝐜𝐭𝐨𝐫𝐲 𝐨𝐟 𝐌𝐢𝐜𝐫𝐨, 𝐒𝐦𝐚𝐥𝐥, 𝐚𝐧𝐝 𝐌𝐞𝐝𝐢𝐮𝐦 𝐄𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞𝐬 (𝐌𝐒𝐌𝐄𝐬) 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚. ✅ MSMEs are integral to India's economy, contributing 29% to GDP, 44% to exports, and employing over 123 million people. Despite their critical role, these enterprises historically faced barriers in accessing 𝐂𝐫𝐞𝐝𝐢𝐭,𝐂𝐚𝐬𝐡 𝐥𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲, 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐞, 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭, 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐚𝐧𝐝 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 . The industry has identified a staggering credit gap of Rs 25 trillion, necessitating innovative solutions to fuel growth. 𝐅𝐢𝐧𝐭𝐞𝐜𝐡 𝐁𝐫𝐢𝐝𝐠𝐢𝐧𝐠 𝐭𝐡𝐞 𝐂𝐫𝐞𝐝𝐢𝐭 𝐆𝐚𝐩: ✅Traditional banks have often been hesitant to extend credit to MSMEs due to perceived risks and lack of credit history. ✅Fintech disruptors are transforming this sector by leveraging alternative data sources such as digital transactions and GST filings to assess creditworthiness. This data-driven approach is expanding the credit market, enabling MSMEs to secure vital funding. By 2026, digital lending is expected to soar to Rs 47.4 lakh crore, highlighting fintech's pivotal role in democratizing access to finance. Digital Payments Revolution ✅The rise of digital payments, facilitated by platforms like UPI, has streamlined financial transactions for MSMEs. With over 10 billion transactions processed monthly via UPI, these technologies are enhancing operational efficiency and financial inclusion. This shift towards digital modes is crucial, with 72% of MSME payments now conducted digitally, signaling a transformative shift from cash-based transactions. 📌 Future Outlook: Integrating AI and DeFi Looking ahead, the convergence of AI and machine learning in fintech promises enhanced credit scoring models and personalized financial services. Decentralized finance (DeFi) platforms are also poised to democratize access to financial services, reducing reliance on traditional intermediaries. ✅ Fintech has revolutionized access to financial services for MSMEs, formerly out of reach. Embracing modern fintech platforms enables small businesses to streamline operations, manage cash flow efficiently, and gain control over their finances. These solutions provide rapid access to capital, empowering MSMEs to expand, explore new opportunities, and access broader markets. Moreover, fintech addresses the long-standing issue of financial inclusion among MSMEs, offering tailored financial services that traditional banking often fails to provide. ✅ Active fintech providers supporting MSMEs include: Indifi Technologies, Capital Float, Clix Capital, Lendingkart, NeoGrowth, SME Corner, Vayana Network, CoinTribe #msme #fintech #credit #insurance #projectfinance #indianeconomy

What if rural farmers and traders in Africa could access payments, credit, health insurance, and pensions all from a single platform? Not just basic banking. But true financial empowerment. Abiola Jimoh, Co-Founder and Co-CEO of XCHANGEBOX, is working on making that future a reality through PayRep, and it's already transforming how underserved communities in Northern Nigeria trade, grow, and thrive. For episode #172 of the Unlocking Africa Podcast, I spoke with Abiola, who shared how firsthand fieldwork sparked a mission to bridge the financial access gap for SMEs, farmers, and traders across Nigeria. As Abiola noted… "You can't just dump technology on people. You need technology and people to work together if you want to build something sustainable." "We want to create an opportunity for people to invest in a system that unlocks the potential of Africa's SMEs and farmers." During our conversation we discussed: → Building financial inclusion from the ground up → Overcoming regulatory barriers to fintech innovation → Why in Africa, "you need people more than technology" to scale rural businesses → The dream of a synergised pan-African e-commerce framework Abiola also contributed a powerful chapter to the book Thrive: Mastering E-Commerce the African Way, published by Africa Retail Academy, Lagos Business School Nigeria, where he discusses the urgent need for regulatory reform to unlock Africa’s e-commerce potential. In his chapter, he makes one thing clear: Real financial inclusion isn’t just about technology. It’s about understanding people, solving real pain points, and building the infrastructure that empowers lasting growth. If you are interested in fintech, development, agriculture, or scaling impact in emerging markets, this episode is a must-listen. ⬇️ Link to this episode is in the comments below ⬇️ #Fintech #FinancialInclusion #SMEGrowth #UnlockingAfrica #Podcast #Ecommerce #PodcastHost

(Disclaimer - Contrarian view, personal opinion, but interested in learning from experts) FPOs are not a silver bullet for rural credit. * There is a growing narrative in agri-finance: instead of lending directly to individual farmers, financial institutions should channel credit through Farmer Producer Organisations (FPOs). This shift makes operational and portfolio sense. FPOs help aggregate inputs, enable value chain integration, and support shared infrastructure, delivering community-level benefits. Lenders say that FPOs offer pooled risk, reduced transaction costs, and easier monitoring. Blended finance structures and credit guarantees often sweeten the deal further. But let’s not confuse structural efficiency with financial inclusion. FPOs are powerful enablers in the right contexts, but they are not a substitute for household-level solutions. Farming is not a monolith. Most decisions—crop selection, input purchases, asset ownership, labour allocation—and most risks—weather shocks, illnesses, income volatility—occur at the household level. These needs are diverse, complex, and deeply personal. If we design systems where credit flows only to the collective, we risk bypassing the very people we claim to serve. Financial institutions that chase scale by over-relying on collectives while ignoring household realities aren’t solving rural poverty—they are sidestepping it. FPOs work well when the problem is collective. But households need autonomy, tailored financial products, and resilience on their terms. Individual lending, though costlier and operationally challenging, is essential for true financial inclusion. It requires the more complex work of designing systems and models that can underwrite household risk using appropriate econometric models, digital footprints, social capital, peer references, and alternative data sources. I could not find data points or evidence that suggests lending through FPOs inherently reduces credit risk compared to lending to individual farmers. Can someone direct me to the Agri-NPA data disaggregate by borrower type? What I found was a multitude of narratives that glorify FPO performance, but they all emphasise aggregation efficiency over repayment behaviour. Without precise, comparative data on default rates, the belief that FPOs are safer lending bets remains unproven—and potentially misleading if used as a blanket rationale. It allows institutions to declare success while leaving the most vulnerable invisible. Lending to an FPO is not the same as lending to a farmer. One does not replace the other. We don’t need a binary choice—we need segmentation and innovative application. Both models have value, but in very different contexts. The key is to understand the limitations of each and build approaches that combine collective efficiency with individual agency. Financial inclusion is not about proxies. It’s about building systems that see the farmer and serve their specific needs, with dignity.