Financial inclusion accelerates in developing nations, says World Bank’s Findex 2025

KATHMANDU: A record number of adults in low- and middle-income countries now have access to bank or other financial accounts, marking a major shift in global financial inclusion, according to the World Bank Group’s Global Findex 2025 report. This growing financial participation is driving formal saving practices and expanding economic opportunities.

The report shows that 40% of adults in developing economies saved money in a financial account in 2024, representing a sharp 16-percentage-point increase from 2021. This marks the fastest rise in more than a decade. Mobile phone technology has played a vital role, with 10% of adults in these regions using mobile-money accounts to save, a 5-point increase over three years.

In Sub-Saharan Africa, formal saving surged by 12 percentage points, with 35% of adults now saving through formal financial institutions. Increased savings are supporting national financial systems, channeling more capital into investments, innovation, and economic development.

“Financial inclusion has the potential to improve lives and transform entire economies,” said Ajay Banga, President of the World Bank Group. He highlighted the institution’s focus on supporting digital ID access, cash transfer systems, modern payment infrastructures, and regulatory reforms to further expand financial services.

Bill Gates, Chair of the Gates Foundation—which supports the Global Findex initiative—added, “More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress.”

The Findex 2025 data underscores a significant global milestone: nearly 80% of adults now own a financial account, a major leap from just 50% in 2011. However, 1.3 billion adults remain unbanked, despite around 900 million of them owning a mobile phone—530 million of which are smartphones.

Expanding investment in systems such as India’s Unified Payments Interface (UPI) and Brazil’s PIX, along with stronger consumer protections and improved digital security, are key to further progress, the report suggests.

A noteworthy development is the narrowing of the gender gap in account ownership. Globally, 77% of women now own a financial account, compared to 81% of men. In developing countries, women’s account ownership has nearly doubled since 2011—from 37% to 73% in 2024.

For the first time, the report tracks mobile phone ownership and internet access, revealing that 86% of adults globally own a mobile phone, with 68% using smartphones. Yet, only half of the 4 billion mobile-phone-owning adults in low- and middle-income countries use passwords, highlighting growing concerns around digital security.

More people are also using digital means to make payments. In 2024, 42% of adults in low- and middle-income countries made digital payments to merchants, up from 35% in 2021. Three-quarters of government payment recipients and half of wage earners now receive funds directly into financial accounts, ensuring safer and more transparent money transfers.

The Global Findex 2025 reaffirms the role of digital infrastructure and financial innovation in driving inclusion, reducing inequalities, and empowering individuals and economies across the globe.