A major challenge in Africa’s financial inclusion efforts is the significant number of unbanked individuals who lack access to financial services. According to the World Bank, over 1.6 billion adults globally are unbanked, meaning they do not have protection for their money from theft or loss and have never been exposed to financial products such as insurance, loans, or mortgages. This situation exacerbates poverty and stunts economic growth.
UNBANKED POPULATION STATISTICS
A report by Global Finance highlights the top 10 countries with the largest unbanked populations:
- Morocco – 71% unbanked
- Vietnam – 69% unbanked
- Egypt – 67% unbanked
- Philippines – 66% unbanked
- Mexico – 63% unbanked
- Nigeria – 60% unbanked
- Peru – 57% unbanked
- Colombia – 54% unbanked
- Indonesia – 51% unbanked
- Argentina – 51% unbanked
Globally, the regions with the highest financial exclusion rates are developing or emerging economies: the Middle East and Africa (50%), South and Central America (38%), Eastern Europe and the former Soviet republics (33%), and Asia Pacific (24%).
IMPACT OF FINTECH SOLUTIONS
Consulting firm EY Global estimates that adopting broader access to banking, savings, and lending products could boost GDP by up to 14% in large emerging markets like India and up to 30% in frontier economies such as Kenya and other African nations. In Sub-Saharan Africa, financial inclusion is increasingly supported by fintech solutions such as payment gateways, lending platforms, and investment apps. These technologies help bridge gaps by reaching unbanked regions, encouraging entrepreneurship, and allowing individuals in rural areas to access digital banking services without physically visiting banks.
PROGRESS IN FINANCIAL INCLUSION
A 2023 Access to Finance (A2F) survey by Enhancing Financial Innovation & Access (EFInA) shows progress in Nigeria, with the percentage of financially included individuals rising from 56% in 2020 to 64% in 2023. Nigeria aims to reduce financial exclusion to 25% by 2024, reflecting significant strides toward greater financial inclusion.