In a report released by the United Nations, the importance of financial inclusion within the context of the Financing for Development process was underscored. Led by the Special Advocate for Inclusive Finance for Development (UNSGSA), Her Majesty Queen Máxima of the Netherlands, the report sheds light on the transformative power of inclusive finance in driving social and economic development worldwide.
Financial inclusion, as defined in the report, encompasses universal access, at a reasonable cost, to a wide range of financial services provided by sound and sustainable institutions. It aims to enhance access to financial services for individuals and micro-, small, and medium-sized enterprises (MSMEs), particularly in developing countries where access to financial services is crucial for strengthening financial sectors and domestic resource mobilisation.
The report highlights significant progress in advancing financial inclusion globally. Over the past decade, efforts of the international community have led to a remarkable increase in the number of people worldwide having access to financial accounts. Since 2011, the number of account holders has grown by 700 million, with 62 percent of the world's adult population now having an account, up from 51 percent in 2011. This progress represents a 20 percent decrease in the number of unbanked adults, from 2.5 billion to 2 billion.
The Addis Ababa Action Agenda, adopted in 2015, reaffirms the commitment of Member States to continue building on recent progress in financial inclusion. The Agenda calls for financial inclusion to be considered a policy objective in financial regulation, emphasizing the importance of access to finance for MSMEs and the need for robust risk-based regulatory frameworks.
However, despite these achievements, challenges remain. The report underscores the importance of addressing the specific financial needs of women, given their significant role in food production and household expenditure decisions. Moreover, while regulations are necessary for financial market stability, they must also be balanced to ensure they do not hinder investment in sustainable development.
At Finware, we recognize the critical role of financial inclusion in driving social and economic progress. Our mission is aligned with the objectives outlined in the United Nations report, and we are committed to leveraging technology and innovative solutions to expand access to financial services for individuals and businesses in emerging markets. Together, let us continue the journey towards full and equal access to formal financial services for all, advancing prosperity and opportunity worldwide.