Globally there are 1.4 billion unbanked people who lack access to financial resources, exposing a significant gap in financial inclusion in developing economies, World Economic Forum
Fintech can foster economic growth and reduce poverty by providing affordable and accessible digital services, such as mobile money transfers and microloans.
Investing in network infrastructure, providing affordable connectivity and developing innovative financial products and services can bridge the digital divide and promote financial inclusion in emerging markets.
The World Bank estimates that 1.4 billion people worldwide are unbanked. While the GSMA estimates that 345 million of the 400 million micro-enterprises in emerging markets are informal, highlighting a significant gap in the global financial landscape.
This lack of access to financial resources creates a major hurdle, especially for citizens and microentrepreneurs who are the lifeblood of developing economies. These people drive development, create employment opportunities and often improve the quality of life across their communities.
According to the UN, micro, small and medium enterprises (MSMEs) account for 90% of businesses, more than 70% of employment and 50% of GDP worldwide. It’s essential for them, therefore, to have access to the resources and tools they need to expand operations and manage bigger product orders and growing demand.
Fintech can boost financial inclusion
By leveraging digital technologies, fintech solutions can provide a sustainable means for unbanked and underserved populations to contribute to the global economy. This transformative promise is becoming a reality as innovative solutions break down barriers and drive financial inclusion at an unprecedented scale.
Telcos and technology companies are in a unique position to accelerate financial inclusion and create a more equitable financial system. Thus, they have a shared responsibility to bridge the access gap by leveraging their strengths in digital infrastructure, network connectivity, cross-border capabilities and customer reach.
Providing accessible and affordable connectivity to bridge the digital divide starts with network infrastructure. In this regard, e& recently pledged $6 billion to provide accessible and affordable network connectivity and digital services to 16 countries across the Middle East, Africa and Asia between 2024 and 2026.
The company will accelerate technology adoption in developed economies, like the United Arab Emirates and the Kingdom of Saudi Arabia, by pioneering cutting-edge innovations and expanding the application of AI, while also investing in building networks of the future to increase fibre penetration and fast mobile network speeds. This will enable affordable connectivity in emerging economies, expand network coverage and increase speed and access for individuals in areas where it’s limited or expensive. In developing economies, e&’s infrastructure investments, including the expansion of wireless broadband and fibre penetration, will bridge the digital divide and uplift communities.
In Pakistan, e& has brought fibre broadband to over one million homes and will add millions more in the next three to five years. Following a spectrum acquisition in 2021, its 4G mobile network is available to 28 million subscribers in Pakistan, serving as a crucial enabler for essential digital services and integrating communities into the digital economy.
Ultimately, e& aims to facilitate the widespread adoption of digital services, ensuring that essential services, such as mobile financial solutions and education, reach those in underserved regions, thereby bridging the digital divide and promoting sustainable development. Through connectivity, access to financial inclusion is becoming a universal possibility, with the next frontier lying in fintech innovation.
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