New partnerships, projects drive digital and financial inclusion in developing nations

The push to reach millions of digitally and financially underserved people and communities in Africa and around the world remains at full throttle with several new projects, programs and partnerships recently announced.

One such recent announcement is Mastercard’s plan to expand its Community Pass program by facilitating agriculture, healthcare and petty commerce transactions for the rural poor. Digital payments service M-Pesa, widely used in East Africa, is also set to ramp up its financial inclusion efforts as part of a 10-year strategic partnership signed between Microsoft and Vodafone to reach over 300 million businesses and customers with generative AI, digital and cloud services. Meanwhile, at the 2024 World Economic Forum (WEF) which wrapped on January 20, the subject of digital and financial inclusion was very much on the agenda, with panels discussing how research and creativity can play an invaluable role in leveraging access to financial services for individuals and businesses. In a similar vein, the World Council of Credit Unions (WOCCU) has issued its 2024 regulatory update for credit unions around the world with a focus on how they can make noteworthy contributions to financial inclusion through equitable technological innovation.

Mastercard’s Community Pass to foster collaboration for greater inclusion impact

Tara Nathan, Mastercard’s executive vice president and founder of Community Pass, recently highlighted the milestones the program has recorded since its launch in 2019.

Speaking at the second edition of the Community Pass Customer Summit in Kampala, the executive praised the company’s partnership with Uganda and underlined that with even stronger and more diversified collaboration, their goal of reaching 30 million people with Community Pass by 2027 is likely to be achieved.

The Community Pass program was launched in Uganda five years ago. Since then it has been used to facilitate access to crucial basic services for about 3.5 million financially excluded people in the agriculture, healthcare and local commerce domains.

The summit in the Ugandan capital brought together dozens of leaders from government and industry to showcase innovative technologies capable of powering digital and financial inclusion initiatives, as reported by Independent Uganda. It was also an opportunity for those who attended to seal or renew partnerships and unveil new products and services.

Boost for financial inclusion in Africa thanks to Microsoft, Vodafone deal

The partnership between Microsoft and Vodafone focuses on five key areas of collaboration and aims to make the most of their joint expertise in providing scaled digital platforms to over 300 million businesses, public sector organizations and consumers in Africa and Europe.

According to an announcement, the collaboration touches on generative AI, hyperscaling Vodafone’s Internet of Things (IoT) connectivity platform, driving enterprise growth, and cloud transformation. It also focuses on digital acceleration in Africa, with a reinforcement of M-Pesa’s offering to improve the lives of 100 million people and one million small businesses. Through the partnership, and with $1.5 billion investment by Vodafone, M-Pesa will be put on Microsoft’s Azure platform to enable the launch of more cloud-native applications for programs to increase digital literacy, skill development, innovation of financial services, and financial inclusion of underserved markets through digitization.

“Today, Vodafone has made a bold commitment to the digital future of Europe and Africa. This unique strategic partnership with Microsoft will accelerate the digital transformation of our business customers, particularly small and medium-sized companies, and step up the quality of customer experience for consumers,” said Vodafone Group CEO Margherita Della Valle.

Also commenting on the partnership, Microsoft Chairman and CEO Satya Nadella said “this new generation of AI will unlock massive new opportunities for every organization and every industry around the world. We are delighted that together with Vodafone, we will apply the latest cloud and AI technology to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe, build new products and services, and accelerate the company’s transition to the cloud.”

Per the deal, Vodafone’s managed IoT platform will become a standalone company that will “attract new partners and customers, driving growth in applications and expanding the platform to connect more devices, vehicles and machines.”

WEF panel says innovation, creativity vital for financial inclusion

At the just-ended WEF in Davos, the Centre for Financial and Monetary Systems organized a panel discussion to review efforts aimed at closing the digital divide as a way to ramp up financial inclusion.

Drawn from the banking and investment sectors, the panelists, who shared thoughts on the theme of “Comparing notes on financial inclusion,” were unanimous in agreeing that research and technological ingenuity are critical to increasing access to, and the use of, financial services for individuals and small businesses, particularly in emerging markets where the financial inclusion gap is still very wide.

The panel, moderated by CNBC Africa Chief Editor Godfred Mutizwa, consisted of Serey Chea, governor of the National Bank of Cambodia; Mounir Nakhla, founder and chief executive officer of MNT Investments BV Egypt; Iain Williamson, chief executive officer of Old Mutual Emerging Markets Limited; and Her Majesty Queen Máxima, Queen of the Netherlands and the UN Secretary General’s Special Advocate for Inclusive Finance for Development.

Panelists shared experiences from several projects, discussing the impact they have created in various communities in different parts of the world, and how a stronger partnership and vision can lead to more resilient economies.

Meanwhile, an article summarizing key points of WEF 2024 notes that discussions around the use of AI dominated the event, and says one of the takeaways is that AI and other technology tools can spur digital and financial inclusion.

WOCCU highlights financial inclusion in 2024 regulatory update

In its annual regulatory update, the World Council of Credit Unions calls on credit unions globally to adapt to the changing international regulatory environment so that they can continue to provide optimum financial services to all communities.

In a nine-page document, the WOCCU states that because of innovative trends and technological evolution, financial industry regulations must be accordingly tailored so that community organizations and underserved communities are not excluded from key aspects of the financial services market.

Article Topics

Africa  |  digital ID  |  digital payments  |  financial inclusion  |  M-Pesa  |  Mastercard  |  Mastercard Community Pass  |  Microsoft  |  World Bank  |  World Economic Forum