When financial services and products are readily available to adults of all demographics, people have more power over their cash flows and can invest in their households, skills, or business. Right now, financial inclusion plays a pivotal role in reigniting economies as they recover from the fiscal damage caused by the COVID-19 pandemic. 

However, it was during the pandemic that the digitalisation of payments accelerated significantly, propelling financial inclusion in many countries, as the latest figures from the World Bank show. Recent data revealed that 76 per cent of adults worldwide now hold an account at a bank, other financial institution, or mobile money provider, a figure that has increased from 68% in 2017 and 51% in 2011, respectively. 

This is positive news for overall financial inclusion globally. While previous studies showed concentrated growth in India and China, this data found the percentage of account ownership rose by double digits in 34 countries over the past five years. 

Alongside this boost to inclusion has been a significant increase in the use of digital payments. Two-thirds of adults worldwide currently make or receive digital payments, and in developing economies, this rose from 35 per cent in 2014 to 57 per cent in 2021. In low and middle-income economies (apart from China), more than 40 per cent of adults making in-store or online payments using a card, phone, or the internet did so for the first time since the pandemic.

These developments show a broader range of customers gaining access to fast, seamless, secure payments. Digital payments provide a higher level of customer convenience and security, encouraging more transparency while decreasing the risk of theft. 

As the digitalisation of payments continues to rise, it becomes clearer that technology has a vital role in encouraging financial inclusion and supporting organisations, removing critical barriers in the transaction process on both individual and organisational levels.

For individuals, technological advances in biometrics have enabled more marginalised populations to participate in financial services. The rise of iris recognition and selfie facial recognition in customer authentication has helped broaden access while protecting customer security, helping those who do not hold official identity documents. 

For organisations, payment providers can enable further digitisation and create less reliance on cash for donations, as well as waiving transaction fees and mandating zero fees on donation transactions. These modern payment solutions ensure that 100 percent of the money reaches the charity. 

The levels of digital financial inclusion in developing countries and customer expectations around seamlessness in developed countries only continue to increase. This, in turn, only strengthens the importance that technology has shown in mitigating the social and economic impact of global events in recent years.