The booming population of unbanked individuals further exacerbates the poverty headcount ratio in some regions thus leading to a stunted economic growth.
A significant challenge in Africa's financial inclusion journey is the large number of unbanked individuals who are yet to have access to financial services.
The World Bank puts the number of unbanked persons at over 1.6 billion adults; these individuals have no protection cover for their money from theft or losses, and have never been introduced to any financial products like insurance, loans or mortgages.
The booming population of unbanked individuals further exacerbates the poverty headcount ratio in some regions thus leading to a stunted economic growth.
According to the World Bank report "Poor people also account for a disproportionate share of the unbanked. Globally, half of unbanked adults come from the poorest 40% of households within their economy, the other half from the richest 60%".
This table sourced from Global Finance ranks the top 10 countries with the largest number of residents who do not have access to bank services or any similar financial product.
| 1 | Morocco | 36.9 | 71 |
| 2 | Vietnam | 97.3 | 69 |
| 3 | Egypt | 102.3 | 67 |
| 4 | Philippines | 109.6 | 66 |
| 5 | Mexico | 128.9 | 63 |
| 6 | Nigeria | 206.1 | 60 |
| 7 | Peru | 33 | 57 |
| 8 | Colombia | 50.9 | 54 |
| 9 | Indonesia | 273.5 | 51 |
| 10 | Argentina | 45.2 | 51 |
On a global level, the regions that have the largest base of financial excluded individuals are in developing or emerging economies, and include the Middle East and Africa (50%) South and Central America follow at 38%, Eastern Europe and the former Soviet republics at 33%, Asia Pacific's share stands at 24%.
According to consulting firm EY Global, there is a possibility of boosting GDP by up to 14% by adopting broader access banking, savings and lending products in large emerging countries such as India and up to 30% in frontier economies such as Kenya and other African countries.
The growth of financial inclusion In Sub-Saharan Africa, has been linked to the high adoption of fintech solutions like payment gateways, lending platforms, and investment apps which will further bridged the gaps by penetrating the unbanked regions.
The adoption of fintech solutions in unbanked areas will also encourage entrepreneurship and businesses in the rural areas which in turn, will also enable some unbanked individuals to access digital banking services without having to physically visit a banking structure.
A 2023 Access to Finance (A2F) survey conducted by Enhancing Financial Innovation & Access (EFInA) reports a rise in data of financially included Nigerians from 56% in 2020 to 64% in 2023, thus indicating a significant progress as the country targets to reduce levels of financial exclusion to 25% by 2024.
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