Financial Inclusion in the Digital Economy

Digital technology is rapidly becoming the biggest driver around the world of economic innovation, competition, and growth. Even though many people have been excluded from the digital economy, tremendous opportunities are available for it to support financial inclusion for sustainable economic development.

Key Points

• Digital technology is transforming the financial services landscape. Developing country governments in Asia and the Pacific are exploring ways to encourage their populations to use the four key instruments of financial inclusion: payment system, credit, insurance, and investment. By creating such an ecosystem, they can help expand access to affordable financial services to the financially excluded. The emergence of new digital technology, including Fintech, can ensure financial inclusion and improve financial well-being.
• For success, financial services need to be tailored to the needs of customers and to be transparent and secure, while providing optimal balance between price and product features.
• Well-sequenced and coordinated policies and regulations is needed for the introduction of digital financial services. This can nurture technological innovation at all levels, by making financial markets and systems more efficient, and contribute to financial stability.
• ADB can help developing countries in Asia and the Pacific mainstream financial inclusion and stimulate broad-based economic growth with its finance and knowledge solutions.