The report by Mckinsey is the first to comprehensively quantify the economic and social impact to emerging economies of digital finance, or financial services delivered via digital technologies– mobile phones or the Internet–with less use of cash and traditional bank branches. In addition to extensive economic modeling, we draw on findings from seven country visits that cover a range of geographies and income levels (Brazil, China, Ethiopia, India, Mexico, Nigeria, and Pakistan) and more than 150 expert interviews.
Today, two billion individuals and 200 million small and mid-sized businesses in emerging economies lack access to savings and credit. Even those with access must often pay high fees for limited product choice. Economic growth suffers. But a solution is literally at hand. Digital tools – mobile phones and the internet – dramatically reduce the cost for finance providers to reach and serve customers, thereby raising productivity and investment in the economy and making financial inclusion a reality.