Financial access isn’t enough: Three billion still lack credit

Financial inclusion has expanded rapidly in recent years, but access alone is proving to be a shallow measure of progress. Around three billion people worldwide still lack access to formal credit — a critical tool for long-term economic security and growth.

Without the ability to save formally or borrow responsibly, billions remain vulnerable to economic shocks, unable to fund businesses, invest in opportunities, or cushion themselves against global uncertainties.

Why it matters

A new report by the Atlantic Council’s GeoEconomics Center, titled “A Three-Billion-Person Challenge: Decision Time for Financial-Sector Leaders,” underscores a widening gap between access and actual usage of financial services.

The year-long global study attributes the problem largely to three barriers: connectivity, affordability, and security.

By the numbers

• 84 percent of adults in low- and middle-income economies (LMIEs) own a device capable of accessing digital financial services.
• 75 percent have a financial account.
• But only 40 percent save formally.
• Just 24 percent  have accessed formal credit.

The takeaway: Having an account does not automatically translate to meaningful participation in the financial system.

The risk factor

Efforts to expand digital finance have also increased exposure to cybercrime and data misuse, deepening public mistrust. Inconsistent internet connectivity and high data costs further discourage active usage.

For digital lenders like Tala, the solution lies in responsible innovation.

Speaking at the report’s launch on Jan. 15, Tala CEO and founder Shivani Siroya emphasized the need for transparency and consumer control.

By embedding clear pricing and eliminating hidden fees, Tala aims to build trust. The company also actively discloses how customer data is used, shifting greater control back to users.

“You need to have choice, awareness, and control as a consumer where you are not forced into a system and you're seen as a true consumer that has potential like the rest. I think there's dignity in that,” Siroya said.

For 12 years, Tala has positioned its mission beyond simply expanding access — focusing instead on helping customers protect, use, and grow their money over time.

The report also cited Tala’s Global Debt Collection with Dignity Initiative as a model framework that regulators worldwide can adapt to improve oversight of debt collection practices.

Gender gap persists 

Women remain disproportionately excluded from meaningful financial participation. In the Philippines, 59 percent of women used mobile money in the last seven of 30 days, compared to 71 percent of men.

The study links this disparity to lower confidence in using mobile money and a lack of services tailored to women’s needs.

The bottom line

Bridging the financial inclusion gap now requires coordinated action from both public and private sectors — turning digital access into real economic opportunity for billions. —Ed: Corrie S. Narisma