2025 Expert Guide: The Importance of Financial Inclusion Strategies and Policies

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Billions of people worldwide still lack access to basic financial services, limiting opportunities for savings, investment, and stability.

Financial inclusion ensures that everyone, regardless of income or location, can access affordable and reliable financial products such as savings, credit, insurance, and payment services.

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A strong financial inclusion strategy makes these services accessible to underserved groups, promoting growth and resilience. 

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This guide explores why they matter, key global strategies and policies, regulatory best practices, and how Credolab advances inclusive credit access through alternative data and machine learning (ML).

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Why Is Financial Inclusion Important?

It is vital for both individuals and businesses, as it enables access to essential financial services that drive equality and growth. It enables people to save, borrow, invest, and protect themselves against financial shocks, thereby creating pathways out of poverty and toward stability.

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Its importance lies in addressing long-standing barriers such as a lack of access to basic financial tools, limited credit options, and financial exclusion of small businesses. 

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Inclusive finance provides a secure means for savings, payments, credit access, and investment, improving cash flow management and overall financial health.

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Key benefits include:

• Poverty Reduction: Broader access to credit and microloans supports income growth and entrepreneurship.
• Economic Stability: Inclusive finance boosts productivity and supports sustainable economic growth.
• Gender Empowerment: Women gain greater control over their finances and business opportunities.
• Financial Resilience: Savings and insurance protect households from emergencies.
• Improved Quality of Life: It opens opportunities for jobs, education, and better living conditions.
  
  

Aligned with the 2030 Sustainable Development Goals (SDGs), it supports progress in areas such as health, education, and mobility. It plays a crucial role in helping marginalised communities overcome poverty and contribute to shared prosperity.

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A sound financial inclusion policy fosters transparency, consumer protection, and long-term growth, ensuring that financial progress benefits everyone, not just a privileged few.

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Global Strategies and Policies for Financial Inclusion

1. Digital Financial Services

Financial Technology (Fintech) platforms make financial access simple. Mobile banking, wallets, and digital payments remove physical barriers and bring banking to remote regions.

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2. Microfinance and P2P Lending

Microfinance institutions (MFIs) and peer-to-peer lending (P2P) expand credit for the unbanked, helping small businesses and individuals build assets.

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3. Financial Education

Financial literacy empowers people to manage debt, save efficiently, and make better financial choices.

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4. Digital Infrastructure Investment

Investing in payment systems, internet connectivity, and digital identity networks enables broader access to secure and seamless financial services.

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5. Alternative Data and Inclusive Credit Scoring

Alternative data, such as utility bills, rental history, and smartphone usage, enables more inclusive credit decisions. Credolab uses privacy-consented behavioural and device metadata to evaluate repayment potential for those lacking traditional credit scores.

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6. Public–Private Partnerships

Collaboration between governments and fintech companies ensures sustainable progress. Digital government transfers and shared ecosystems expand reach efficiently.

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Policy Levers and Regulatory Best Practice

Regulatory policies are essential to balance innovation and consumer protection.

• Pro-innovation Frameworks: Sandbox environments allow fintech pilots while managing risk.
• Data Privacy and Consent: Individuals must control how their data is used and shared.
• Interoperability Mandates: Standardised payment and identity systems ensure universal access.
• Consumer Protection: Fair fees, clear disclosure, and fraud safeguards strengthen trust in digital finance.
  
  

State of Financial Inclusion: LATAM vs APAC

Financial inclusion has become a key topic in many regions, including Latin America (LATAM) and Asia-Pacific (APAC). 

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Several factors make promoting broader financial access crucial in both regions, such as high smartphone usage, but limited availability of traditional banking services or a lack of formal bank accounts. There are, however, significant differences between the two regions. 

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Financial inclusion in LATAM

1. Digital Financial Services

In both LATAM and APAC, digital financial services have become increasingly popular as they provide opportunities and access to financial services for underbanked or unbanked populations. 

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In Colombia, initiatives have been launched to promote the usage of digital financial services, including e-wallets and mobile money or wallets. These initiatives increase access to financial services even in the absence of a traditional bank account. 

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The Colombian government created Ingreso Solidario in response to the COVID-19 pandemic. It is a non-conditional emergency transfer program that assists vulnerable households without social program coverage. 

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Ingreso Solidario promotes digitalisation using digital financial services such as digital accounts and mobile wallets.

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It focuses on expanding access to financial services and shifting from traditional cash transactions to digital channels, particularly for first-time users of mobile-based accounts. 

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Furthermore, it leverages recent regulatory modernisation for non-bank payment services and provision and incorporates tiered and remote customer onboarding protocols.

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2. Microfinance: 

Microfinance, or microcredit, is a banking service for low-income businesses or individuals with limited or zero financial access. 

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It includes a wide coverage of services or products, including savings, credit, insurance and even non-financial services like employee training for all low-income individuals. 

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In Brazil, the government introduced several initiatives aimed at strengthening MFIs and expanding access to financial services. 

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A news release from the International Finance Corporation (IFC) reports that it has invested in four Brazilian institutions providing microfinance and advisory services to six microfinance companies.

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This investment aims to ensure institutional sustainability, maximise development impact, and increase access to high-quality financial services for underserved populations. 

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To address the issue of gender inequality still present in Brazil, the largest Brazilian regional development bank, Banco do Nordeste, created Cedriamigo Delas, a microcredit line for women, especially for female entrepreneurs. 

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Through Crediamigo Delas, more than 300K women received over 500K loans between 2021 and July 2022.  

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Although financial access is lower in Brazil, the country is reported to have the largest population of adults receiving government payments into financial accounts or cards. 

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These numbers can be traced back to the success of Brazil’s conditional cash transfer program, Bolsa Familia, which has national coverage and aims to support families in (extreme) poverty while improving access to education and health services. 

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Furthermore, Brazil was among the first countries to adopt a formal financial access strategy for expanding access to financial services as early as 2011, giving it a head start in promoting broader financial participation.

3. Financial Education: 

Financial education plays a crucial role in promoting financial access, and many countries in LATAM and APAC have launched initiatives or programs to improve financial literacy. 

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Financial education, particularly efforts to strengthen individual financial literacy, plays a vital role in expanding access to and effective use of financial services. 

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Countries in LATAM and APAC have launched their own initiatives or educational programs to improve their population’s financial literacy. 

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In Mexico, financial education programs were launched by the government, specifically with the Nacional Financiera (NAFIN), which is in charge of financing productive units and small to medium-sized businesses, as well as fostering the financial literacy of entrepreneurs. 

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The Ministry of Labour and NAFIN collaborate to supply financial education programs and training to beneficiaries of social programs, especially for young adults, to build up their financial knowledge and literacy rates.

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According to the IMF, the Ministry of Finance has also taken other measures to promote financial literacy, including:

• A financial literacy and skills curriculum was developed for children from kindergarten to grade 12.
• A financial education training course was implemented for teachers in vulnerable municipalities. As a result, it is estimated that 7,000 teachers have received training as of August 2021.

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With financial literacy, individuals gain more control and are empowered to make better financial decisions to maintain or improve their livelihoods. 

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Furthermore, gaining financial knowledge is always beneficial for understanding financial services better and, thus, increasing access to traditional and alternative, or digital, financial services. 

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Financial inclusion in APAC

About 1.4 billion people remain unbanked today, even with fintech and its emerging technologies contributing to fostering financial inclusion. 

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To be precise, about 70% of Southeast Asia (SEA) contributes to this figure, with the majority belonging to Indonesia and the Philippines, as well as up to 63% of adults in Thailand classified as unbanked or underbanked.

Yet, in recent years, APAC, specifically the Association of Southeast Asian Nations (ASEAN) countries, has experienced rapid growth, with many countries becoming global economic powerhouses.

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Despite the progress, access to essential financial services remains a challenge for many people across regions. 

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Below are some key initiatives aimed at expanding affordable and inclusive financial access:

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1. Digital Financial Services: 

Adopting digital financial services in ASEAN countries is seen as a significant initiative. Digital financial service revenues in SEA are predicted to increase by 22% until 2025, reaching about $38 billion (US Dollars). 

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Furthermore, it is recommended that financial companies invest in building a robust infrastructure to support digital financial services to meet their future customer demands. 

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In Thailand, for instance, the Monetary Policy Group, Bank of Thailand, has identified two types of digital financial services: present and potential. 

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The former includes electronic payments (e-Payment) through financial and non-financial institutions, encompassing three present retail e-Payments - card payments, internet and mobile banking, and e-money. 

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Since government policy and technological access have increased, Thai people have become more familiar with these retail e-payments. 

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The latter includes digital currencies such as the potential use of Central Bank Digital Currency (CBDC) and cryptocurrencies issued by the central bank in Thailand. 

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Although the CBDC is not currently issuing cryptocurrencies in Thailand, private cryptocurrencies are gaining popularity and finding greater usage.

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2. Peer-to-peer (P2P) Lending: 

Another initiative that has gained popularity in SEA is P2P lending platforms, especially in Indonesia, where unbanked individuals make up more than half of their total population. 

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As P2P or customer-to-customer is prevalent in Indonesian communities, eliminating intermediaries like financial institutions and implementing directly exchanging loans with each other was made possible with P2P lending. 

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However, small businesses and individuals were excluded from traditional banking services to gain credit access.

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“With over 51% of the population unbanked in Indonesia, it is no surprise that the opportunity for P2P lending has increased significantly. Today we see the emergence of at least 30 new P2P lenders in Indonesia, representing nearly 43% of the Fintechs in Indonesia. This is a huge opportunity for the country but also for companies that can bring a new form of digital experience to these people who have no bank account or credit card.” 

- Par Svalas, Managing Director of Global Sales

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3. Financial Education: 

In the Philippines, the government has launched several initiatives to improve financial literacy among its population. 

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For example, the National Strategy for Financial Inclusion by Bangko Sentral ng Pilipinas (BSP) planned to strengthen financial education and consumer protection by using a common framework to develop and implement financial literacy programs focusing on a few key areas, including emerging digital finance products, effective and safe use of digital financial services and financial consumer rights and consumer assistance mechanisms. 

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Apart from these financial literacy programs, other initiatives were also planned out, such as:

• Establishing an annual financial education stakeholder conference to maintain consistency in the adoption
• Developing innovative methods for delivering financial literacy training, including online and alternative methods

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Financial education empowers individuals to gain adequate financial knowledge. Having this knowledge, in turn, assists in more informed decision-making, especially for financial decisions. 

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This increases accessibility to financial services, leading to better management of finances, increasing monetary savings and ensuring better financial stability.

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