Digital financial services to improve formalized access and inclusion
A&R CartonJ-Pal
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What is it?
Digital financial services are dramatically improving financial access for marginalized communities.
With the proportion of adults using digital payments in low- and middle-income countries surging from 26 percent to 51 percent between 2014 and 2021, digital finance is helping reduce remittance costs, facilitate risk-sharing, and alleviate poverty.
HIGHLIGHTS
A new Policy Insight from J-PAL’s Finance sector reviewed 28 randomized evaluations across twelve countries studying the impacts of digital financial
services.
- Increased savings and resilience: Enabling communities to save more effectively and build financial resilience against economic shocks.
- Enhanced efficiency and transparency: Reducing misappropriation and administrative costs while increasing efficiency and transparency in government-to-person payments through mobile money.
- Economic empowerment for women: Enhancing women's business profits and household incomes and giving them greater financial control.