Mobile Phone Technology Fuels Surge In Savings Among Adults In Developing Economies

According to the World Bank Group’s Global Findex 2025 report, more adults in low- and middle-income countries now have financial accounts. This increase is leading to a rise in formal saving. The trend is creating new economic opportunities. Mobile-phone technology has been crucial, with 10% of adults in developing economies using mobile-money accounts to save—a 5% increase since 2021.

In 2024, 40% of adults in developing economies saved through financial accounts. This marks a 16% rise since 2021, the fastest in over ten years. Higher personal savings through banks or other formal institutions strengthen national financial systems. This makes more funds available for investment and economic growth. In Sub-Saharan Africa, formal savings rose by 12% to include 35% of adults.

The Global Findex is a key source of data on global access to financial services, covering payments, saving, and borrowing. It highlights a significant milestone: nearly 80% of adults worldwide now have a financial account, up from 50% in 2011. However, 1.3 billion adults still lack access to these services.

World Bank Group President Ajay Banga stated that financial inclusion can improve lives and transform economies. He emphasised digital finance's role in realising this potential but noted that several elements must be present. The World Bank Group is assisting countries by improving digital IDs and constructing social protection programs with digital cash-transfer systems.

Mobile phones could help bridge the gap for those without financial accounts; about 900 million such adults own mobile phones, including 530 million with smartphones. Meanwhile, account ownership in the Middle East and North Africa increased from 45% in 2021 to 53%. In the same region, formal saving rose from 11% in 2021 to 17% in 2024.

Bill Gates, Chair of the Gates Foundation, which supports the Global Findex, remarked on the progress made: "More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind." He highlighted that investing in inclusive financial systems is a proven way to unlock opportunities for everyone.

The momentum towards greater financial inclusion is evident as more individuals gain access to banking services globally. This shift not only enhances personal savings but also fuels broader economic development by making funds available for innovation and job creation.

With inputs from WAM