About

Despite an ever-expanding global financial system, a staggering 1.6 billion adults still lack access to formal financial services. Nearly half of these individuals are concentrated in seven economies—China, India, Indonesia, Pakistan, Nigeria, Mexico, and Bangladesh. Digital Financial Services (DFS) present an unprecedented opportunity to bring these communities into the fold, fostering financial inclusion. By simplifying account creation, streamlining onboarding processes, and offering user-friendly digital platforms, DFS have the potential to unlock financial access for unbanked and underbanked populations. However, in practice, many vulnerable groups drop off during these crucial steps. This study was commissioned to uncover the reasons behind these drop-offs.

DiFi for All explores how unbanked and underbanked populations in Bangladesh, India, Indonesia, and Uganda engage with DFS. It examines the multitude of factors that act as barriers or enablers and investigates how digital financial services can bridge these gaps. The findings are organised into thematic episodes, user archetypes, and scenarios, enriched by photos, videos, and illustrations.

A note on the research methodology

This study employed a qualitative research approach across four diverse geographies: India, Bangladesh, Indonesia, and Uganda. These locations were chosen for their unique socioeconomic contexts, offering valuable comparative insights into digital financial inclusion. Researchers conducted extensive fieldwork, capturing detailed, real-world accounts of user experiences through thick, descriptive narratives.

The research focused on documenting various onboarding journeys across different service providers and use cases, with particular emphasis on women and vulnerable groups. A qualitative sample of 200 unique users per country ensured a wide representation of perspectives, ensuring that the voices of those often excluded from financial systems were prominently featured.

The study was structured around three critical stages. Discovery explored how users first encounter or recognise the need for digital finance. Onboarding examined the challenges faced during account setup, KYC verification, and initial use, where many users drop off. Ongoing use focused on understanding user behaviour and engagement with digital financial services after onboarding.

This comprehensive approach aimed to uncover barriers and enablers of digital financial inclusion. The objectives were to deeply understand onboarding experiences by documenting real-world user journeys to identify pain points and barriers, to highlight where and why drop-offs occur during the onboarding process, and to develop recommendations for service providers to enhance digital financial inclusion efforts.

By focusing on unbanked and underbanked populations, the research aimed to uncover the realities of those excluded from mainstream financial systems. The insights gathered provide actionable recommendations to bridge the gap through improved digital financial services, contributing to greater financial inclusion globally.

DiFi for All is the result of a collaborative effort between research partners BRAC Institute of Governance and Development (Bangladesh), Somia CX (Indonesia), and Three Stones International (Uganda), led by Quicksand (India).