Digital Finance for all: powering inclusive growth in emerging economies

McKinsey & Company

McKinsey & Company is a global management-consulting firm that helps some of the world’s leading businesses to improve their performance, whether they operate in the private, public or social sector.

The report assesses the impact of digital finance (Fintech) on emerging economies, based on the conclusions of field trips conducted in seven countries: Brazil, China, Ethiopia, India, Mexico, Nigeria and Pakistan- and on over 150 interviews with experts.

The study looks at how cash is used in these regions and the low degree of financial inclusion, which translates into about two billion unbanked people and 200 million micro, small and medium enterprises with inadequate access to credit.

The report stresses the potential of digital finance to transform emerging market economies. It concludes that adopting and using digital finance would have the following global impact:

  • An increase in GDP of USD 3.7 billion by 2025
  • The creation of 95 million new jobs
  • The inclusion of 1.6 billion more people in the financial system; and
  • New deposits worth USD4.2 trillion