FINANCIAL SERVICES
What works where and why: Cross-regional comparison
Innovation
Best Region(s)
Why It Works There
Mobile money and agent banking
SSA
• Scarce bank branches • Strong telecommunications ecosystem • Flexible regulation • High cash usage • High energy deficits • Mobile-money readiness • Donor support for distribution and FX risks • Strong state capacity • Large markets • Effective public digital infrastructure • Mature banks • Good digital literacy • Strong data protection frameworks • Deep e-commerce platforms generating usable cashflow data
PAYGo solar and productive assets
SSA
Digital ID, real-time payments and interoperable QR
Developing Asia; LAC (Brazil)
Open finance and data sharing
LAC; parts of Asia
Alt data MSME credit
Asia; LAC
• Fintech platform partnerships • High climate shock exposure • Large smallholder sectors
Climate and parametric insurance
SSA; parts of Asia
• Donor and insurer investment in data • Deeper institutional investor base • Regulatory sophistication
Green bonds, social bonds and securitizations
LAC; emerging Asia
Innovation is reshaping financial systems and development opportunities across LMICs, but context matters: SSA thrives on mobile-first models that overcome physical infrastructure gaps; Asia excels in DPI-driven innovation and platform-based finance, while LAC leads in open finance, digital banking and capital market depth. This highlights the need to match innovation to regional conditions. But there is also a need to focus on high-impact models that reduce poverty and support resilience, invest in the public and regulatory infrastructure that makes innovation safe, scalable and sustainable as well as to focus on the most immediate gains that come from proven technologies. What will success look like? It will require balancing all the above, along with safeguards to ensure foundational digital infrastructure for widespread poverty reduction and sustainable financial inclusion. A lot to ask for in very challenging circumstances.
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