Digital financial inclusion impact on emerging markets
Rapid advances in technology are enabling those in emerging markets to skip certain phases of growth in areas where infrastructural and market voids exist. The perpetually increasing availability and decreasing cost of wireless internet, for example, is helping those in rural areas connect to the rest of the world, while at the same time bypassing the expense and labor of building a traditional physical communications network. IMANI brings financial tools and infrastructure as a money transmitter, without the cost of brick and mortar banks.
Using a system such as IMANI (differing greatly from the 'top-up' players, such as M-pesa, in the market today), McKinsey quantifies just how large the economic impact could be:
Allow governments to save $110 billion per year by reducing leakage in spending and tax revenue (80-90% lower cost to providing digital rather than physical accounts).
Widespread use of digital finance could boost annual GDP of all emerging economies by $3.7 trillion by 2025.
Additional GDP could lead to the creation of up to 95 million jobs across all sectors.
Advancing gender equality in financial inclusion could unlock $12 trillion of incremental GDP by 2025.