Improving financial inclusion has become a top priority within environmental, social and governance (ESG) frameworks. I see how isolated communities around the globe lack technology-enabled infrastructure and suffer from economic discrepancies due in large part to poor financial inclusion. Especially in these unprecedented times, which include a pandemic and war, societal development is more important than ever.

The World Bank indicates that nearly 2 million people lack access to financial services. Even developed countries like the U.S. still have vast unbanked and underbanked populations, according to the FDIC's report. This is to say nothing of the emerging countries in regions like the Middle East and North Africa (MENA), Latin America and Southeast Asia. This is why both governments and socially responsible organizations are placing a heightened focus on the improvement of financial inclusion. As surveys from Delottie and Forrester reveal, the fintech industry is gaining momentum now to help financial organizations bridge the digital gap and address financial inequality.

Given all this, connecting the unbanked to the financial system via digital mobile wallets seems to be the right choice. As someone who has helped provide wallet-as-a-service models to countless companies, I understand how the solution can seem simple on its surface, but further exploration is needed to identify some hitches to adoption and accessibility.

First Digital Wallets: What Went Wrong

The global mobile penetration rate is huge and still counting.  Statics unveiled that the number of smartphone users surpassed 6 billion in 2021 and is projected to grow to nearly 8 billion by 2027. This continued growth opens up vast opportunities for the financial industry. Simply put, people can install mobile finance apps on their smartphones to get easy access to digital financial services. But switching to a cashless society is not an easy feat.