How organizations are advancing digital financial inclusion

Roughly 1.4 billion adults around the world remain unbanked—disproportionately women, rural residents, and individuals earning low or irregular incomes. These groups often face multiple barriers such as distrust of financial institutions, lack of sufficient funds, limited connectivity in rural areas, lack of identification documents, and the resulting high transaction costs, which limit opportunity for economic participation for those who need it most. 

Digital financial inclusion—using available technologies to allow underserved and excluded populations better access to financial services through mobile devices and other digital platforms—has emerged as a pivotal issue in global development. In fact, it’s in eight of the 17 UN Sustainable Development Goals—including eradicating poverty, ending hunger, and reducing inequality.  

Digital banking tools are spreading, but access gaps remain 

Yet, even as digital financial services such as digital wallets, mobile money providers, banks, savings co-ops, and neo-banks continue to expand, barriers to access remain. In practice, even when digital tools are available, they may not align with how people live and manage money. For example, irregular income can make it difficult to meet minimum balance requirements or plan repayments; shared mobile devices raise concerns around privacy and authentication; and service fees, even when modest, can be unaffordable. Technology has the potential to reduce these challenges—but without an understanding of the lived realities of the intended users, it can just as easily reinforce them. 

The good news is that community-based organizations are stepping in to help close this gap. Their deep roots in local contexts—and long-standing connections, understanding, and trust among the populations they serve—position them to make digital finance more inclusive, relevant, and accessible. While their contributions often go under-recognized, these organizations are central to how financial tools can be effectively deployed in underserved communities. 

From nonprofit service providers to system designers  

In the field of financial technology, nonprofits historically have been viewed as intermediaries—focused on financial education or service delivery. Increasingly, they’re taking on more dynamic roles: designing tools, shaping implementation strategies, and informing policy frameworks. When supported with flexible funding and included in the early stages of product or policy design, community-based organizations contribute essential insights that can lead to more effective, inclusive systems.  

For example, local organizations can help reduce financial barriers for underbanked and marginalized communities by designing systems that lower transaction costs, facilitating choice and security through ethical and user-centric digital financial services, and enabling innovation. 

Localizing digital financial inclusion: A case study from rural Mexico 

In rural Mexico, a nonprofit-led effort shows how locally adapted digital infrastructure can support financial access. The Asociación Mexicana de Uniones de Crédito del Sector Social (AMUCSS), and the People’s Clearinghouse (PCH) are playing a pivotal role in integrating rural community banks into Mexico’s central financial infrastructure. By engaging with regulatory bodies and implementing open-source technology, PCH aims to enable remittances directly into rural customers’ accounts, reducing reliance on cash-based methods. It also helps retain liquidity within the local economy and reduces reliance on intermediaries that charge high fees. By combining open technology with community-led financial models, the initiative supports locally relevant innovation rooted in trust, regional identity, and collective effort.  

Building trust through cultural relevance 

In many communities that have historically been excluded from the formal financial sector, where trust is a major barrier to adoption, community-based organizations with long-standing relationships are better positioned to bridge this divide. Activities such as hosting financial literacy workshops in local languages, providing user support, or offering guidance on digital security go beyond technical onboarding; they help align tools with community norms and expectations, which is essential for sustained use. 

Contributing to policy and systems change 

Beyond direct service, many community-based organizations contribute to broader digital financial inclusion by engaging with regulators and financial institutions. For example, the United Nations Capital Development Fund has documented how nonprofit coalitions have helped shape national policies around agent banking and digital identity systems. These efforts ensure that newer infrastructure doesn’t unintentionally exclude people lacking formal documentation or consistent internet access. 

This systems-level work underscores the dual role of nonprofits: They not only implement solutions but also help shape the environments in which those solutions operate. 

Considerations for the sector 

For funders, practitioners, and policy makers seeking to expand digital financial inclusion, several key insights emerge, including:

• Community-based organizations are close to the challenges—and the solutions. Their insights are critical to identifying gaps and tailoring responses. 

• Nonprofits contribute throughout the process. From service delivery to product co-design and regulatory input, their role is multifaceted. 

Digital finance will continue to grow in scope and sophistication—but inclusive access is not guaranteed. It depends on intentional design, localized adaptation, and trusted intermediaries who understand the needs of people often left out of conventional systems. The contributions of community-based organizations, sometimes behind the scenes, are laying the groundwork for more inclusive financial systems—built not only for the people who use them, but with them. 

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