7 reasons why financial inclusion matters for your business?

Financial inclusion helps the underprivileged people access affordable and reliable financial services. It allows customers and businesses to use banking, payments, and credit solutions without barriers. According to World Bank sources, around 1.4 billion adults worldwide remain unbanked. Many people still lack access to basic financial services. Expanding financial inclusion benefits you and your customers. It increases your customer base, drives digital adoption, and builds trust. It also opens new revenue streams and ensures compliance with regulations. Here are seven reasons why financial inclusion is important for your business. Let’s start by understanding what is financial inclusion. Understanding financial inclusion Financial inclusion means providing accessible and affordable financial services to everyone. It focuses on reaching unbanked and underbanked individuals. This includes offering digital payment solutions, mobile wallets, and agency banking. Your business benefits by reaching more customers, improving service accessibility, and strengthening financial stability. Digital solutions play a key role in making financial services available anytime and anywhere. There are several reasons that digital payment solutions should consider financial inclusion. Let’s see the seven major reasons why financial inclusion matters 1. Expanding your customer base Financial inclusion helps you expand your business. It helps you to reach places where people have no access to financial inclusion. By offering digital payment solutions like agency banking, you can reach these underserved customers. Predominantly, you should focus on offering services that help you reach your customers and solve their problems. Also, expanding services attract new customers and increase transaction volumes. And more customers lead to higher revenue and long-term business growth. 2. Driving digital payment adoption Digital payments play a major role in financial inclusion. Many customers prefer mobile wallets and online transactions over cash payments. So, you should try to adopt solutions that eliminate physical payment methods with digital payment software. Providing seamless and affordable digital payment options encourages more people to adopt them. Additionally, you can benefit by reducing operational costs and improving efficiency. Digital transactions also enhance security and transparency. 3. Enhancing customer trust and loyalty Your customers want a trustworthy platform while using digital platforms for transacting. Security is the main reason customers shift to other alternative platforms. Because people trust platforms that offer secure and accessible services. And transparent pricing, quick transactions, and reliable support improve customer confidence. Offering financial inclusion solutions builds strong relationships with your customers. Trust and convenience lead to higher retention rates and long-term customer loyalty. 4. Boosting economic growth and financial stability Financial inclusion helps economies upgrade by empowering individuals with their lifestyles. It allows many self-employed individuals to access financial activities. The IMF reports that financial inclusion improves economic stability. When people participate in the financial system, they contribute to overall economic growth. Taking part in financial inclusion, your business benefits from a stronger economy with higher consumer spending. According to the World Bank, access to financial services reduces income inequality and drives financial stability. More financial participation leads to economic resilience. Supporting financial inclusion means helping more people contribute to economic progress while securing your institution’s long-term success. 5. Unlocking new revenue streams Financial inclusion in banking allows you to offer new services. Services such as agency banking, remittance services, and digital wallets provide you with additional revenue opportunities. In Kenya, agency banking processed over 78 million transactions in 2022, marking a 39% increase from the previous year. Also, cross-border remittances are a key area for growth. The global remittance market reached $860 billion in 2023. And offering affordable remittance solutions helps you attract more customers while generating revenue. 6. Meeting regulatory and ESG requirements Governments and regulators promote financial inclusion as a key policy. You must comply with inclusion mandates, such as following the rules and regulations that are given by the government of the country to operate in certain markets. Financial inclusion also aligns with Environmental, Social, and Governance (ESG) goals. Providing accessible financial services supports sustainable development and social responsibility. A strong financial inclusion strategy ensures compliance while reinforcing your institu

Apr 29, 2025 - 06:25

7 reasons why financial inclusion matters for your business?

Financial inclusion helps the underprivileged people access affordable and reliable financial services. It allows customers and businesses to use banking, payments, and credit solutions without barriers. According to World Bank sources, around 1.4 billion adults worldwide remain unbanked. Many people still lack access to basic financial services.

Expanding financial inclusion benefits you and your customers. It increases your customer base, drives digital adoption, and builds trust. It also opens new revenue streams and ensures compliance with regulations.

Here are seven reasons why financial inclusion is important for your business.

Let’s start by understanding what is financial inclusion.

Understanding financial inclusion

Financial inclusion means providing accessible and affordable financial services to everyone. It focuses on reaching unbanked and underbanked individuals. This includes offering digital payment solutions, mobile wallets, and agency banking.

Your business benefits by reaching more customers, improving service accessibility, and strengthening financial stability. Digital solutions play a key role in making financial services available anytime and anywhere.

There are several reasons that digital payment solutions should consider financial inclusion. Let’s see the seven major reasons why financial inclusion matters

1. Expanding your customer base

Financial inclusion helps you expand your business. It helps you to reach places where people have no access to financial inclusion. By offering digital payment solutions like agency banking, you can reach these underserved customers. Predominantly, you should focus on offering services that help you reach your customers and solve their problems.

Also, expanding services attract new customers and increase transaction volumes. And more customers lead to higher revenue and long-term business growth.

2. Driving digital payment adoption

Digital payments play a major role in financial inclusion. Many customers prefer mobile wallets and online transactions over cash payments. So, you should try to adopt solutions that eliminate physical payment methods with digital payment software.

Providing seamless and affordable digital payment options encourages more people to adopt them. Additionally, you can benefit by reducing operational costs and improving efficiency. Digital transactions also enhance security and transparency.

3. Enhancing customer trust and loyalty

Your customers want a trustworthy platform while using digital platforms for transacting. Security is the main reason customers shift to other alternative platforms. Because people trust platforms that offer secure and accessible services. And transparent pricing, quick transactions, and reliable support improve customer confidence.

Offering financial inclusion solutions builds strong relationships with your customers. Trust and convenience lead to higher retention rates and long-term customer loyalty.

4. Boosting economic growth and financial stability

Financial inclusion helps economies upgrade by empowering individuals with their lifestyles. It allows many self-employed individuals to access financial activities.

The IMF reports that financial inclusion improves economic stability. When people participate in the financial system, they contribute to overall economic growth. Taking part in financial inclusion, your business benefits from a stronger economy with higher consumer spending.

According to the World Bank, access to financial services reduces income inequality and drives financial stability. More financial participation leads to economic resilience. Supporting financial inclusion means helping more people contribute to economic progress while securing your institution’s long-term success.

5. Unlocking new revenue streams

Financial inclusion in banking allows you to offer new services. Services such as agency banking, remittance services, and digital wallets provide you with additional revenue opportunities.

In Kenya, agency banking processed over 78 million transactions in 2022, marking a 39% increase from the previous year.

Also, cross-border remittances are a key area for growth. The global remittance market reached $860 billion in 2023. And offering affordable remittance solutions helps you attract more customers while generating revenue.

6. Meeting regulatory and ESG requirements

Governments and regulators promote financial inclusion as a key policy. You must comply with inclusion mandates, such as following the rules and regulations that are given by the government of the country to operate in certain markets.

Financial inclusion also aligns with Environmental, Social, and Governance (ESG) goals. Providing accessible financial services supports sustainable development and social responsibility.

A strong financial inclusion strategy ensures compliance while reinforcing your institution’s commitment to ethical and sustainable banking. Meeting these standards enhances your reputation and business credibility.

7. Strengthening market competitiveness

By offering affordable and accessible services, you become competitive in the marketplace. Customers prefer platforms that provide affordable and accessible solutions. Agency banking and digital wallets allow you to reach the underserved markets.

And providing seamless financial services differentiates you from competitors. A Deloitte report states that banks focusing on financial inclusion can increase their market share by up to 15% in emerging markets.

Interoperable digital payment systems improve customer experience. By adopting financial inclusion strategies, you stay ahead of competitors and attract more customers.

A strong financial inclusion strategy positions your business as an industry leader. By adapting to evolving market needs, you attract more customers and maintain a competitive advantage.

Conclusion

Financial inclusion benefits both you and your customers. It helps you reach the places where people don’t have access to banking facilities. Further, it also helps you expand your market, increase digital adoption, and build trust.

Financial inclusion is not primarily about reaching new customers and markets but providing seamless and robust financial services while focusing on your customers' problems. Offering tailored services based on geographical parameters would help you serve unbanked customers more effectively while maintaining a competitive edge.

As financial inclusion grows, businesses that embrace it will drive innovation, enhance customer relationships, and secure long-term success in the financial industry.