How Fintech Can Bridge The Gap For The Underbanked

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  Science and Technology on Mon, Sep 15th, 2025 by Forbes

Fintech for the Forgotten: How Technology Can Bridge the Gap for the Underbanked
Forbes Tech Council – 15 September 2025

In a world where nearly two‑thirds of the global population remains unbanked or underbanked, the Forbes Tech Council article “Fintech for the Forgotten: How Technology Can Bridge the Gap for the Underbanked” makes a compelling case for fintech as the engine of financial inclusion. Written by industry veteran and Forbes contributor Alexandra Reyes, the piece synthesises data from the World Bank, GSMA, and leading fintech case studies to outline a roadmap for turning technology into a universal access tool.

1. The Scope of the Problem

Reyes opens with stark statistics: “According to the World Bank’s Global Findex 2023 report, 1.7 billion adults worldwide have no account at a financial institution. In emerging economies, the gap is even wider—up to 80 % of rural households lack access to basic banking services.” The article highlights that underbanked populations are disproportionately women, rural residents, and informal‑sector workers, each facing unique obstacles—low digital literacy, limited mobile coverage, and cultural mistrust of formal institutions.

2. Technology’s Proven Solutions

The core of the article is a deep dive into concrete fintech innovations that have already begun to shift the balance.

Reyes emphasizes that these technologies do more than merely digitise existing models—they re‑engineer them to be cheaper, faster, and more inclusive.

3. Partnerships and Ecosystems

A significant part of the article is dedicated to how fintech can scale through collaboration. Reyes cites a case study linking Branch and the Kenyan Ministry of Finance, which leveraged mobile money data to offer micro‑insurance to low‑income households. She also points to the World Bank’s Digital Financial Services Initiative—a sandbox that allows fintech firms to test products under relaxed regulatory conditions. By partnering with governments, NGOs, and traditional banks, fintech companies can pool resources, share risk, and align incentives for inclusion.

4. The Human Factor

Technology alone is insufficient; the article stresses the importance of digital literacy and financial education. Reyes quotes a GSMA report on “Digital Literacy for the Next Billion” that recommends community‑led workshops to teach app usage, safe online practices, and basic budgeting. She also warns against “predatory lending” that can arise when AI credit scores are over‑reliant on algorithmic data. The article calls for transparent disclosure of fees and clear repayment terms.

5. Policy Recommendations

Reyes concludes with a set of actionable policy levers:

1. Regulatory Sandboxes that enable rapid testing of inclusive fintech products.
2. Data‑Privacy Safeguards that allow sharing of behavioural data for credit scoring while protecting personal information.
3. Standardised Digital‑ID Frameworks that can be cross‑border, facilitating remittances and trade.
4. Incentives for Rural Infrastructure—such as subsidised 4G towers or solar‑powered connectivity hubs—to reduce the digital divide.

By integrating these policies with the technology stack outlined earlier, Reyes argues, the world can move from “banking the forgotten” to “banking everyone”.

Follow‑Up Links and Further Reading

The article links to several key resources that deepen its analysis:

• World Bank Global Findex 2023 Report – Provides the latest data on financial inclusion trends and challenges.
• GSMA Mobile Economy 2024 – Offers insights into mobile penetration and usage patterns that shape fintech adoption.
• Case Study: M-Pesa’s Impact on Rural Kenya – A detailed examination of how mobile money transformed local economies.
• Open‑Banking Guide from the European Banking Authority – Outlines the regulatory framework enabling API‑based innovation.

These sources add nuance to Reyes’ arguments and provide evidence for the metrics cited.

Final Thoughts

Reyes’ article is both a celebration of what fintech has already achieved for the underbanked and a sobering reminder of the work still to come. By framing technology as a tool for empowerment rather than a luxury, the piece underscores the moral imperative for financiers, policymakers, and technologists to collaborate. As the world edges toward a more connected future, Fintech for the Forgotten offers a clear, data‑driven blueprint for ensuring that no one is left behind.