Financial Inclusion – Thematic Intelligence

Financial Inclusion Thematic Report Overview

GlobalData defines financial inclusion as: “efforts to increase the accessibility, affordability, and applicability of financial services”. By identifying barriers and key sources of friction, providers can give customers more of what they want, more quickly (and cheaply) than before.

The ‘Financial Inclusion’ thematic intelligence report gives you an in-depth insight into the financial inclusion theme and the ways it will impact different financial services provider types and business models. It further entails a deep-dive analysis of the theme, including key market trends that will shape the financial inclusion theme over the coming years. The report also gives an insight into the market players and the competitive landscape within the theme.

Financial Inclusion – Key Trends

The main trends that will shape the financial inclusion theme over the next 12 to 24 months are classified into technology, macroeconomic and social, and regulatory trends.

• Technology trends: The key technology trends impacting the financial inclusion theme are the proliferation of mobile users, big data credit scoring, growing automation across industries, and the rising use of artificial intelligence, and cloud-based applications.
• Macroeconomic and social trends: New entrants cynically deploying financial inclusion, COVID-19, rising interest rates, LGBT, and non-traditional income patterns are the key macroeconomic and social trends influencing the financial inclusion theme.
• Regulatory trends: Fee transparency, immigration policy, bank as a service, data privacy and consent management, and open banking are regulatory trends impacting the financial inclusion theme.

Buy the Full Report for More Trend Insights into the Financial Inclusion Theme

Download a Free Report Sample

Financial Inclusion Value Chain Analysis

In 2024, financial inclusion initiatives tend to fall into four broad categories. First, the un- or underbanked individuals or often risky, rural, and micro enterprises categorized as developing economy un/underbanked. Second, the equivalent segment in developed markets, who are typically underbanked (rather than unbanked) due to credit scores, financial literacy, hidden fees, etc. termed as developed economy un/underbanked). Third, the marginalized segments, experience some degree of discrimination from mainstream providers due to their sexuality, ethnicity, political/religious beliefs, etc.  Fourth, communities that can access financial services, but not in ways that strictly advance issues they care about most, are categorized as conscious communities.

Financial Inclusion Value Chain Analysis

Buy the Full Report for More Insights into the Financial Inclusion Value Chain
Download a Free Report Sample

Financial Inclusion – Competitive Landscape

Developing Economy Un/and Underbanked Fintech

A few leading most established or interesting players catering to un or underbanked in emerging markets are:

• GXBank
• Khazna Tech
• Klar
• Kuda
• Lucky Financial
• Others

Developed Economy Un- and Underbanked Fintech

A few of the most established or interesting players catering to un or underbanked in more developed markets are:

• Chime
• Current
• Lydia
• Majority
• Monese
• Others

Marginalized Segmented-Focused Fintech

The following are a few new digital banks or digital platforms primarily or exclusively focused on certain communities, whether along the lines of political or ethical care-about, racial or religious groups, and so on. They aim to combine profit, purpose, and a specific set of consumer needs.:

• Atem
• BetaBank
• Cheese
• Comun
• Daylight
• Others

Conscious Community-Focused Fintech

The following are a few new digital banks or digital platforms primarily or exclusively focused on certain communities, whether along the lines of political or ethical care-about, racial or religious groups, and so on. They aim to combine profit, purpose, and specific sets of consumer needs.

• Aspiration
• Glorifi
• Helios
• Tomorrow
• Wahed

Buy the Full Report to Know More about the Companies Making their Mark Within the Financial Inclusion Theme
Download a Free Report Sample

Banking Sector Scorecard

At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our sector scorecard has three screens: a thematic screen, a valuation screen, and a risk screen.

• The thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
• The valuation screen ranks our universe of companies within a sector based on selected valuation metrics.
• The risk screen ranks companies within a particular sector based on overall investment risk.

Banking Sector Scorecard – Thematic Screen

Buy the Full Report to Know More about the Sector Scorecards in the Financial Inclusion Theme
Download a Free Report Sample

Scope

The report includes:

• Many of the most successful new digital banks in the world are primarily about the economics of financial inclusion, whether that is Nubank in Brazil, WeBank and MYbank, in China, Digibank in India, Ualá in Argentina, and TymeBank in South Africa.
• Despite a much more difficult funding environment, significant investment dollars continue to flow into markets where mobile penetration is high but banked populations are low because many believe financial inclusion is big business.
• Many financial inclusion startups target key remittance corridors for target demographics, then expand out into additional financial services. GlobalData’s 2023 Financial Services Consumer Survey reveals that individuals who send money abroad to family or friends are almost four times as likely to have suffered from financial fraud compared to those who have not sent remittances.
• Alcohol consumption is one of the first focal points for changed behavior when consumers seek to pursue healthier lifestyles.
• Half of drinkers globally state they are often or always influenced in their product choice by how an alcoholic beverage impacts their health and well-being.

Reasons to Buy

• Identify the core components of meaningful financial inclusion around the accessibility, affordability, and applicability of financial services.
• Understand which technology trends are enabling a new breed of highly segmented, digital-first financial inclusion providers in both emerging markets and established economies.
• Understand the latest regulatory trends impacting financial inclusion, and where arbitrage opportunities may exist for new entrants versus incumbent banks.
• Understand what are the best attack vectors for financial inclusion in terms of product and experience, as well as which markets are most ripe for new entrants (based on growth forecasts, consumer openness, etc.).
• Review a firm-level insight into the best financial inclusion propositions worldwide..