Sub-Saharan Africa’s formal savings rate increased by a noteworthy 12 points to 35 per cent, highlighting the region’s leadership in mobile money usage worldwide. This is according to the latest World Bank’s Global Findex 2025 report.
The rapid uptake of mobile money services contributed significantly to the record rise in formal savings among adults in developing economies.
In 2024, 40 percent of adults in these nations saved money using formal financial systems, such as banks, fintech companies, and mobile money platforms, the report claims.
With a 16 percent increase from 2021, this represents the fastest growth in more than ten years.
Rapid smartphone penetration and better internet access contributes to surge in formal savings
With mobile money usage for savings among adults in developing economies doubling from 5 percent in 2021 to 10 percent in 2024, the World Bank attributed the growth to rising smartphone penetration and better internet access.
“Digital finance can convert this potential into reality,” stated World Bank President Ajay Banga, adding that to maintain the momentum, the Bank is assisting nations in modernising payment systems, expanding digital IDs, and streamlining regulations.
80% adults have financial account
The report, widely regarded as the standard for monitoring global financial access, shows that almost 80 percent of adults worldwide now have a financial account, a significant increase from 50 percent in 2011.
Despite these advancements, 1.3 billion people remain unbanked. A significant opportunity for digital financial inclusion is highlighted by the fact that 900 million of them currently own mobile phones, with more than half of them using smartphones.
Women account ownership rise to 73%
In low- and middle-income countries, women’s account ownership nearly doubled from 37 percent in 2011 to 73 percent in 2024, significantly narrowing the gender gap, according to the report.
Cybersecurity and digital fraud issues, however, continue to be major obstacles.
“More people than ever have the financial tools to invest in their futures. This is real progress. But there’s still work to be done to make systems safer and more inclusive,” stated Bill Gates, chair of the Gates Foundation, which funds the Global Findex Initiative.
Growing adoption of digital payments
According to the report, 42 percent of adults in low- and middle-income countries had made a digital payment to a merchant by 2024, up from 35 per cent in 2021. This shows how widely accepted digital payments are becoming.
Additionally, it noted a move away from cash, with half of wage disbursements and three-quarters of government payments now going straight into bank or mobile money accounts.