MicroSave Consulting’s thought leadership report, “Towards a Trusted Digital Nation”, offers a multi-country analysis of data protection laws across 12 nations in Asia and Africa. The study uses a robust assessment framework to uncover regulatory and enforcement gaps, highlights global best practices from GDPR-aligned regimes in the EU, UK, Japan, and the U.S., and benchmarks them against regional progress. It recommends practical reforms such as tiered consent, independent data authorities, and public awareness initiatives. The report reinforces that global alignment and strong governance are key to building secure, inclusive, and trusted digital economies in the Global South.
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Cross-border payments in Africa: What is changing and why it matters
The landscape of cross-border payments
Njeri, 34, is a small entrepreneur in Kenya who sells garments and needs to pay a supplier in Uganda. On the southern tip of the continent lives Jackson, a 40-year-old South Africa-based diaspora member who needs to send funds back home to his family in Ghana. In Africa, such cross-border transactions are more than a mere exchange of funds across nations. They serve as the vital lifeblood of entire economies that support millions of people who live, work, hope, and dream across geographies.
Yet these hard-working people must struggle with high costs, slow processes, and limited access to reliable, affordable, and readily available cross-border payment solutions, which hinder trade and stifle economic growth. The market faces several challenges, which include high remittance costs of 7.4% to 8.3%, regulatory fragmentation, foreign exchange liquidity issues that cause USD 5 billion in annual losses, and a continued reliance on offshore USD/EUR clearance that increases transaction costs.
Despite these setbacks, a glimmer of hope has emerged in the steady transformation of cross-border payments across Africa. As of 2025, the market is worth approximately USD 329 billion. It is projected to triple to USD 1 trillion by 2035, driven by FinTech innovation, the rise of mobile money, and increased intra-African trade. This expansion translates to a compound annual growth rate (CAGR) of about 12%.
Mobile money platforms are central to this growth. In 2022, they processed USD 837 billion in transactions globally, with Africa responsible for 66% of the volume. These platforms offer significantly lower fees than traditional banks, with rates that range from 1.5% to 3%. But for us to understand the landscape better, we must take a look back in time.
A shift from informal to structured systems
Cross-border payments in Africa began in pre-colonial times through vital yet informal networks that physically moved funds. These early systems were often unreliable, insecure, and slow, which were among the gaps that formal banks eventually addressed. Despite the emergence of formal banks, small-scale and informal traders continued to rely on physical cash. They chose it not because it was safe, but because it was the most direct and accessible option.
Things changed when the introduction of traditional banking systems formalized cross-border payments. Commercial banks enabled secure international transactions through services, such as bank transfers, SWIFT wires, and card payments. These systems supported high-value and corporate trade but remained inaccessible and inefficient. Further, banks continued to be costly, with average fees that exceed 11% per transactionlengthy process times, and limited access for people who need funds. Low financial inclusion further limited access, as only 49% of Sub-Sahara Africans had bank accounts as of 2021. This left vast portions of the population excluded from formal financial systems.
The present: A digital transformation
Today, Africa is witnessing a profound digital transformation in cross-border payments that directly addresses historical inefficiencies. With our multi-decade-old roots deep within the continent, MicroSave Consulting (MSC) continues to uncover a deep understanding of user needs through extensive research and solutions to meet these needs.
With the Mastercard Foundation, our demand analysis in Côte d’Ivoire, Mali, and Senegal revealed how migrant families depend on informal channels as they lack tailored financial services. Based on this research, we recommend human-centered, remittance-linked digital financial services (DFS) to support last-mile use and adoption, especially for low-value, frequent transactions. Our work in India, the Philippines, and West Africa further emphasizes the need for stakeholders to understand migrant behavior and design inclusive payment corridors.
When we move back to Kenya, we see Kenya Commercial Bank (KCB) and Equity Bank have produced KCB Connect and Equity Direct to offer faster and more affordable regional transfers. They reduce dependency on banking and offer competitive forex rates. Outside Kenya, top-tier banks, such as Nigeria’s Zenith Bank and Ecobank, use specialized trade finance solutions and multi-currency accounts to simplify cross-border businesses.
Meanwhile, money transfer operators (MTOs), such as Western Union, offer speed but at high fees. Mobile money platforms, such as M-PESA Global, have revolutionized peer-to-peer (P2P) remittances and guarantee direct mobile-to-mobile transfers. Providers have successfully addressed fragmented networks and interoperability by forging extensive partnerships with other mobile money operators and banks, often leveraging global payment hubs and standardized APIs to connect disparate systems.
Regional payment systems further enhance efficiency and solve long-overdue payment challenges.
In 2022, the African Export-Import Bank (Afreximbank) and the African Union launched the Pan-African Payment and Settlement System (PAPSS). It provides breakthrough infrastructure for instant, secure cross-border transactions in local African currencies, a significant advancement that directly connects African currencies and bypasses traditional reliance on intermediary foreign exchange. The distributed ledger technology (DLT) in PAPSS eliminates the need for intermediary currencies, such as the USD or Euro. It reduces transaction costs by up to 50% and settlement times from days to seconds. DLT also enhances transparency through real-time tracking and anti-fraud protocols.
By early 2025, PAPSS had enabled real-time cross-border payments across 17 countries, connecting 14 national switches and over 150 commercial banks. This growth aligns with the African Continental Free Trade Area (AfCFTA) goals and positions the PAPSS as a vital part of intra-African trade, which is expected to increase from 18% to 50% annually by 2030. Recent innovations, such as the integration of PAPSS into mobile banking apps for small and medium enterprises and diaspora remittance corridors, further democratize access to Africa’s integrated financial future.
Yet, challenges persist
Despite significant gains, Africa’s cross-border digitization has yet to solve key challenges. Providers struggle to align frameworks, which block smooth interoperability, especially in regions without unified KYC rules, anti-money laundering (AML) measures, and consumer protection. Foreign exchange shortages and dependence on offshore clearance raise costs and slow transactions.
Moreover, users in rural areas cannot access last-mile infrastructure due to scarce mobile money agents and cash shortages. Many consumers are unaware of new cross-border solutions or lack the digital skills to use them. Remittance costs in Africa average 7.4%, exceed global targets, and limit affordable options for frequent, low-value transfers. This situation spells a need for expanded access. These gaps underscore a need for regulatory coherence, expanded access, and user-centric design to unlock the potential of Africa’s payment system.
Regulatory reforms as the way ahead
The regulation of domestic infrastructure, the introduction of national switches, and their integration to enable efficient, low-cost, and inclusive systems are essential for cross-border payments in Africa. Countries must connect national switches, such as Tanzania’s TIPS and Rwanda’s RSwitch, to the PAPSS and standardize AML/KYC regulations. This will improve interoperable digital infrastructure and promote local currency settlement.
MSC’s work in cross-border payments in India, the Philippines, and West Africa emphasizes the need to understand migrant user behavior, the risks of informal channels, and design human-centric products. These lessons will prove valuable for inclusive payment corridors under the AfCFTA.
Central banks, governments, FinTechs, and regional bodies must work together to uncover Africa’s payments potential worth USD 1 trillion by 2035. An increased focus on digital literacy and inclusion will reduce costs, boost transparency, and open the doors to Africa’s integrated and prosperous financial future.
Strengthening the backbone of Indonesia’s fisheries: A call to action
“We used to be proud to be fishers, and life was not hard. My child will definitely not follow in his father’s footsteps; he is better off working on land than at sea.”
These somber words from Pak Suwardi, a small-scale fisher in Lamongan, East Java, ironically one of the country’s top fish producing regions, reflect the struggles facing small-scale fishers across Indonesia. Many small-scale fishers and aquaculture farmers throughout the archipelago are grappling with increasing economic, social, and environmental challenges that threaten their livelihoods, mirroring struggles faced by their counterparts in many parts of the world. As highlighted by the joint research on the Blue Food Assessment (BFA) conducted by MSC and Ministry of National Development Planning/National Development Planning Agency (Bappenas), these pressing issues demand urgent attention, particularly as Indonesia is finalizing the 2025-2029 National Medium-Term Development Plan (RPJMN).
Small-scale fisheries and aquaculture (SSFA) make up 85% of Indonesia’s fisheries sector and are essential to the value chain. They support food security, provide livelihoods for a significant portion of the population, and contribute to the sustainable management of aquatic resources. The Indonesia Blue Economy Roadmap 2023-2045 aims to elevate the contribution of marine and aquatic sectors to 15% of GDP and create jobs for 12% of the workforce by 2045.
However, small-scale fisheries and aquaculture (SSFA) in Indonesia face several challenges. Access to finance remains a significant barrier for SSFA, limiting their ability to upgrade equipment or invest in sustainable practices. Many prefer informal loans over institutional financing, which deepens their reliance on middlemen, who often act as key financial facilitators. During off-seasons, SSFA are forced to diversify their income, but limited skills and capital often confine them to low-paying jobs, such as basic fish processing or manual labor.
Resource and operational constraints have left SSFA’s potential largely untapped. Despite their significant numbers, small-scale fishers contribute only 20% of national fish catch. They face critical barriers in accessing affordable fuel for their boats and often rely on outdated equipment, limiting their access to more productive fishing grounds. According to our BFA findings, inefficiencies in fishing methods and inadequate storage exacerbate these issues, with up to 10 kg of fish per harvest lost to spoilage, especially on longer trips.
The aquaculture sector faces similar challenges, achieving only 30% of its potential production capacity. Farmers often lack access to affordable, high-quality seeds and feed, which are unreliable due to seasonal and weather fluctuations, price instability, and limited availability. Quality supplies are often prioritized for export. Access to subsidized fertilizers is also limited, as land-based agriculture takes precedence. Additionally, reliance on outdated equipment like fuel-powered aerators significantly raises operational costs. Alternatives such as electric aerators, have been found in our BFA research to reduce costs by as much as 60%.
The predominance of men in SSFA, coupled with an aging workforce and a lack of younger workers, threatens the future of the industry. Many young people from fishing families seek better opportunities elsewhere, leaving small-scale fishing at risk. Although women make up 42% of the workforce in Indonesia’s fisheries sector, their contributions often go unrecognized.
Traditional gender roles limit their involvement in fishing, and they are mainly engaged in pre- and post-harvest tasks. Societal norms and limited recognition as fishers prevent women from accessing resources and support, such as obtaining the KUSUKA card, the national fisher’s identity, limiting their potential to contribute more to the sector.
Climate change exacerbates Indonesia’s fisheries and aquaculture challenges. Sea surface temperatures (SST) have risen at an average rate of 0.19°C per decade over 33 years (Iskandar et al., 2020), outpacing global trends and severely disrupting ecosystems and productivity. Small-Scale Fisheries and Aquaculture (SSFA) are especially at risk due to inadequate access to advanced technology, financial support, and infrastructure.
The Notre Dame Global Adaptation Initiative (ND-GAIN) Country Index 2022 ranks Indonesia globally as the 97th most vulnerable and 99th most ready for climate change, underscoring its critical need for improved resilience and adaptive strategies to safeguard livelihoods and ecosystems.
Given this context, Indonesia must embrace a more robust approach to support SSFA communities. The government has already positioned the blue economy as a future growth engine and a pathway to sustainable fisheries in the 2025-2045 National Long-term Development Plan (RPJPN). This strategy promotes sustainable practices in marine and aquaculture, focusing on high-value products and innovation.
By boosting productivity and empowering communities, Indonesia aims to build a resilient fisheries sector that supports livelihoods and protects ecosystems, promising lasting benefits for the economy and biodiversity. Based on insights from our study with Bappenas, we offer five key policy recommendations to support and sustain Indonesia’s SSFA. These recommendations address pressing needs identified through our research and consultation with SSFA communities and stakeholders.
To lay a strong foundation, first, Indonesia must promote economic empowerment and improve market access for small-scale fishers. Drawing on lessons from the Coastal Community Empowerment Program (PMP-PPK), it is recommended to design comprehensive, integrated livelihoods diversification programs. By partnering with relevant government agencies, Indonesia can provide SSFA communities with additional sources of income, reducing their reliance on unpredictable fishing yields.
Second, strengthen resource access and operational efficiency. Expanding subsidy programs for high-quality inputs, such as fish feed, seeds, and fertilizers, will reduce operational costs for small-scale aquaculture farmers, especially those most vulnerable. Supporting local production and bulk purchasing for fishing cooperatives can further reduce dependency on costly intermediaries, enhancing the economic viability of SSFA. Global examples, such as India’s Pradhan Mantri Matsya Sampada Yojana (PMMSY) under India’s Blue Revolution scheme promotes sustainable aquaculture by providing subsidies and encouraging cooperatives to lower input costs for small-scale fish farmers.
Third, foster social inclusion and build capacity within SSFA communities. Increasing the reach of KUSUKA cards by enhancing public outreach and simplifying the registration process would extend critical social protections to more fishers, ensuring that vulnerable communities can access the support they need. Beyond financial access, this also means providing training and resources that empower women and underrepresented groups within the sector, unlocking the full potential of SSFA to drive local economic growth.
Lastly, ensure the continuity and sustainability of SSFA by developing and implementing a strategic succession plan. This initiative should include capacity building, youth-specific financial services, and leverage digitalization to engage the next generation in the sector. Embracing digital tools—from digital marketing and sales to automation in aquaculture to advance cultivation, and mobile financial services, can make the sector more accessible and appealing to young people, fostering a sustainable pipeline of skilled workers and leaders well into the future.
Addressing the challenges faced by small-scale fisheries and aquaculture is not just about economic growth, it is about safeguarding the food security, livelihoods, and cultural heritage of millions across Indonesia. By investing in these targeted actions, we can secure the future of Indonesia’s fisheries and aquaculture, ensuring that small-scale fishers like Pak Suwardi can envision a better future for themselves and their next generations.
The next chapter in Kenya’s digital payment revolution
Kenya’s success story is often told through the lens of M-PESA, the mobile money innovation that emerged in 2007 and fundamentally reshaped the country’s payment landscape. Its rapid growth stemmed from its agility, adaptive infrastructure, and regulatory initiatives. Thanks to M-PESA, between 2024 and 2029, Kenya’s total digital payment transaction value is projected to grow at a compound annual growth rate (CAGR) of around 14.1% to 26.16%, reaching approximately USD 24 billion by 2029.
Despite this progress, persistent challenges, such as high transaction costs, limited digital literacy, network reliability issues, and a continued preference for cash, hinder adoption. This is particularly evident in rural areas, where fragmented agent networks and duplicative service models limit access to affordable and reliable digital financial services (DFS).
The Central Bank of Kenya (CBK) recognized M-PESA’s pivotal role in the economy and introduced key reforms to promote a more inclusive, secure, and efficient digital payments ecosystem—one that could reshape the country’s economic future.
The CBK has positioned itself as both a regulator and a catalyst for transformative growth. Central to this effort is the National Payments Strategy (NPS) 2022-2025, a blueprint designed to propel Kenya into a future where digital payments are secure, fast, and universally accessible.
The promotion of interoperability across payment platforms has been a core pillar of the NPS. The mandated interoperability of mobile money platforms was a significant milestone in this effort. It enabled seamless and instant fund transfers between M-PESA, Airtel Money, and T-kash. Another leap forward was the introduction of merchant till number interoperability, which allowed payments to any business regardless of the mobile network operator (MNO). This simplified payment acceptance for merchants, especially small and medium enterprises (SMEs), and expanded their customer base. Previously, users incurred high costs by withdrawing funds to transact with users on different networks. Now, direct transactions lessen the need for cash-outs and make digital payments more accessible.
The financial industry in Kenya initiated a strategic initiative to design and implement a shared and interoperable agent network to deepen interoperability and expand financial access. MicroSave Consulting (MSC) led the implementation of this initiative in collaboration with Financial Sector Deepening Kenya (FSD-K). The CBK played a pivotal role in anchoring the project within the NPS and shaping regulatory expectations.
The CBK has also introduced and enforced key standards to enhance efficiency and security. The launch of the KE-QR Code Standard in 2023 introduced a single, interoperable QR code that allows users to transact with any merchant, regardless of PSP or MNOs. The CBK has also been developing a comprehensive framework for consumer protection within the National Payments System to protect consumers. This will establish minimum standards for PSPs, promote fair practices, improve transparency, and enable effective complaint resolution.
Kenya’s adoption of the ISO 20022 Global Messaging Standard also highlights its commitment to international best practices. This standard enhances data exchange during transactions, boosts efficiency, and facilitates more seamless cross-border payments. The CBK has been guiding this transition through policy issuance, stakeholder coordination, and upgrades to systems, such as the real-time gross settlement (RTGS) platform. These efforts enhance fraud detection, strengthen oversight, and reinforce Kenya’s position as a regional financial hub.
Further efforts involve plans to integrate PesaLink with mobile money platforms, such as M-PESA, which will connect traditional banking with mobile money. This push for interoperability will significantly speed up digital payment adoption throughout Kenya.
Alongside these reforms, the CBK is also at the forefront of using supervisory technology (SupTech) to strengthen its regulatory oversight and facilitate innovation. It can now monitor PSPs and banks in real time through digital dashboards, AI-driven anomaly detection, and data analytics platforms. This has drastically improved responsiveness to systemic risks. For example, its risk-based supervision model, underpinned by SupTech tools, allows for dynamic compliance assessments and more efficient fraud detection across mobile money operators.
Lastly, the CBK has been piloting regulatory sandboxes in collaboration with FinTechs. It uses SupTech to monitor innovation and safeguard consumer interests. These systems enhance agility in policymaking, which allows regulators to adapt faster to emerging technologies and payment models. The CBK seeks to proactively detect market abuse and enforce consumer protection in a data-driven, scalable manner through the integration of SupTech into its oversight mechanisms. This bolsters public confidence and ensures inclusivity, especially for vulnerable segments that seek to enter the digital economy for the first time.
As the CBK strengthens regulatory visibility through SupTech, it is simultaneously investing in the core infrastructure that will anchor a seamless and interoperable digital economy. It is in the process of advancing Kenya’s payment infrastructure with the Fast Payment System (FPS), set to launch in 2025. This system will support real-time, 24/7 transactions among individuals, businesses, and the government. Kenya is also integrated with the Pan-African Payment and Settlement System (PAPSS). It has become the 10th African central bank on the platform. This integration seeks to facilitate cross-border payments in local currency, reduce reliance on foreign intermediaries, and support the African Continental Free Trade Area (AfCFTA).
Together, FPS and PAPSS exemplify the CBK’s strategy to create an inclusive, interoperable, and globally competitive payments landscape, guided by global standards, such as ISO 20022, and inspired by models, such as India’s UPI and Brazil’s PIX.
Yet despite significant progress, several barriers continue to inhibit the full realization of an inclusive digital payments ecosystem. These challenges can slow down adoption and deepen existing access inequalities, especially in rural and underserved regions. Key gaps include:
- Fragmented agent networks: Overlapping and siloed agent models create inefficiencies, particularly in rural areas, where agents often serve a limited number of providers. This leads to poor service coverage and reliability.
- High transaction costs: For low-income users, the cost of using digital payment services remains prohibitive, especially when switching across platforms or accessing cash-out services.
- Inconsistent consumer protection: Resolution mechanisms are often inadequate or poorly enforced across providers, which undermines trust and discourages usage, particularly among vulnerable users.
- Lack of a unified payment switch: The absence of a designated National Payments Switch hampers full interoperability across mobile money platforms, banks, and FinTechs, which leads to fragmented user experiences and operational redundancies.
So, what should the CBK do? We recommend the CBK to prioritize the following strategic actions to sustain progress and address persistent gaps:
- Accelerate shared agent network rollout: The CBK should expand the shared agent network to reduce duplication and improve access in rural areas. A unified model will enable agents to serve multiple providers efficiently and lower transaction costs.
- Designate a National Payments Switch: The CBK should designate an existing payments switch as the National Payments Switch. It should be mandated to facilitate all domestic digital payments, similar to India’s UPI model. Clear targets to reduce cross-border costs would also benefit trade and remittances.
- Enforce consumer protection and promote digital literacy: The CBK should finalize the National Payments Consumer Protection Framework and launch targeted digital literacy programs to build trust and ensure safe usage.
- Introduce a secure open finance framework: The CBK should develop a consent-based open finance policy, such as the UK’s OBIE, to enable data sharing, encourage innovation, and enhance user control.
If sustained and expanded, Kenya’s regulatory and infrastructure efforts could redefine financial access for millions and offer a roadmap for digital economies across the continent. With the right policy frameworks and collaborative innovation, a truly inclusive and resilient digital payments future is within reach, both for Kenya and for Africa at large.
From UPI to ULI (Unified lending interface): India’s next digital infrastructure imperative
Rajesh, a Pune-based manufacturer, watched helplessly as his opportunity to supply critical parts for an order slipped away. Despite his best efforts, he couldn’t get a loan of USD 23,000 (INR 20 lacs) to upgrade his equipment.
With purchase orders in hand, Rajesh approached his bank with confidence. What followed was a labyrinthine process that is familiar to India’s MSME sector. First came the demand for documentation, business registration certificates, three years of financial statements, tax returns, and property documents. Days turned into weeks as bank officials requested more paperwork, such as GST returns, bank statements, project reports, vendor agreements, and compliance certificates, sometimes contradicting earlier requirements. Follow-ups yielded vague responses about “processing timelines.” Meanwhile, his client lost patience and awarded the contract to a competitor with ready capacity.
This scenario repeats daily across India’s MSME landscape, where a significant credit gap persists.
India’s digital revolution, anchored by the JAM Trinity, transformed financial inclusion. The Pradhan Mantri Jan Dhan Yojana added 550 million accounts by April’2025, while UPI processed INR 23.94 trillion across 17.8 billion transactions, connecting 660 banks into its network and revolutionizing digital payments acceptance for small businesses. Despite these achievements, MSMEs face an INR 80 trillion credit gap, with nearly 50% MSME credit demand going unmet. Among 64 million MSMEs, 14% have access to formal credit.
This credit gap stems from structural barriers. Many MSMEs lack comprehensive financial records and don’t have collateral to support the scale of financing they require. The conventional lending process remains characterized by paperwork and waiting periods, particularly for new-to-credit (NTC) borrowers. In contrast, urban enterprises and large corporations secure credit within days through streamlined digital processes and relationship banking, highlighting the disparity in financial access. This gap threatens India’s ambitious economic goals to become the world’s third-largest economy by FY2028.
The primary obstacle lies in fragmented data architecture. Financial institutions, particularly smaller lenders, operate on legacy systems that cannot easily integrate with newer platforms. This creates isolated data pockets, preventing a holistic view of potential borrowers and causing unintentional exclusion. Regional rural banks and cooperatives, the first point of contact for rural borrowers, struggle most with these technological limitations.
Compounding this challenge is the scattered nature of data essential to underwriting loans. Land records remain with state governments, GST data with tax authorities, and banking information within individual institutions. Each data source requires separate integration efforts, creating prohibitive costs for smaller lenders. The consequences are tangible. Loan processing that should take days stretches into weeks as lenders manually collect and verify documents. Small businesses have large opportunity costs when capital isn’t available at critical junctures, leading to the exclusion of “thin-file” and “no-file” borrowers.
Unlike bilateral API banking arrangements or the Account Aggregator frameworks, ULI functions as a centralized technology platform that connects lenders with multiple data sources, whether financial or non-financial, through standardized APIs. This plug-and-play architecture eliminates the need for individual integrations that smaller lenders cannot afford. By consolidating financial data (GST returns, income tax filings) and non-financial information (land records, utility payments) into a unified framework, ULI transforms fragmented data repositories into actionable lending insights. For users, ULI simplifies the borrowing experience. Think of it as the digital equivalent of a marketplace where, instead of comparing different brands of products, borrowers can compare credit offers from multiple financial institutions on a single platform. Users provide basic details and financing requirements, and ULI instantly displays tailored credit options, with details on approved amounts, interest rates, and tenure. Borrowers can select the most suitable offer based on their preferences and receive funds directly into their accounts. This eliminates multiple bank visits, downloading numerous apps, or managing stacks of paperwork, transforming a weeks-long process into a streamlined digital experience.
Its key strength lies in the ability to automate documentation processes. Through digital verification channels including eKYC, and eSign capabilities, ULI can reduce loan processing times from weeks to hours. This efficiency addresses the opportunity costs that borrowers face when capital isn’t available at critical business junctures. ULI enables alternative credit assessment by incorporating diverse data points beyond traditional banking records.
The platform’s interoperability with other DPIs, like the Open Credit Enablement Network and Open Network for Digital Commerce, creates a more robust ecosystem for credit delivery. Smaller lending institutions gain access to sophisticated credit assessment tools previously available only to larger banks. Borrowers receive faster credit decisions based on more comprehensive data. As ULI evolves, its potential to close India’s credit gap will be essential to achieving the country’s economic growth targets and ensuring inclusive financial development.
India’s digital highways are built. Now, we must connect them so that no potential borrower is excluded. By bridging our data silos and streamlining credit access, we can unlock the true potential of India’s entrepreneurial spirit and ensure that our digital revolution truly serves all.
The oped was first published on Hindustan Times on 4th July, 2025
A long road to financial inclusion for low-income people with disabilities in Indonesia
Ade, a 23-year-old woman with visual impairments from Indonesia, has been struggling to replace her expired debit card at a bank branch. The bank has no Braille documents and lacks procedures to support independent access for people with disabilities (PwDs). The bank staff asks her to come back to the bank with someone she trusts, which she finds difficult. Instead of adequately accommodating or addressing the accessibility gap, the banks fail to include PwDs like her in the financial system.
In this blog, we explore how the intersection of disability and poverty creates layered barriers to financial inclusion. It draws on field insights from a disability inclusion study conducted by MicroSave Consulting (MSC), in collaboration with Opportunity International Australia (OIA). The study was a joint initiative funded by the Department of Foreign Affairs and Trade (DFAT) and the Australian NGO Cooperation Program (ANCP).
How do non-inclusive services drive dependency?
Non-inclusive services present a significant barrier for PwDs who attempt to access financial products and services. Most financial institutions have failed to meet their needs around communication, physical, or digital access. As a result, basic activities, such as opening an account or replacing a card, require aid from family or friends. The story of 23-year-old Ade tells the challenges PwDs face in financial inclusion. Eventually, she had to reapply for an expired debit card and now avoids going to the bank altogether.
Often, PwDs are afterthoughts in Indonesia’s financial inclusion system, even when they make up 1.4 % of Indonesia’s population, or around 4 million people. Whether it is access to simple financial services, regular usage, or the quality of financial services, PwDs face persistent exclusion. Only 24.3% of PwDs in Indonesia have a bank account, compared to 47% of those without disabilities. Usage of digital financial services is even lower for PwDs, as only 1.1% of them have used the Internet to access financial services.
Such exclusion has a direct correlation to income disparities, as 55% of PwDs belong to low-income backgrounds. In Indonesia, they earn an average of just IDR 1.3 million (~USD 80.25) per month, and 69% work in the informal sector. The vulnerabilities PwDs face increase during times of crisis. As an example, during the COVID-19 pandemic, about 41% were classified as vulnerable to falling deeper into poverty. A 30-80% income drop was identified compared to their pre-pandemic incomes, below IDR 1 million (~USD 61.73).
How are digital finance services not yet universally inclusive?
While digital financial services may have reduced Ade’s visits to physical bank branches, such services are not inclusively designed. She faces other barriers when she tries to complete the electronic know your customer (e-KYC) process. The live detection feature, which requires users to move their head in specific directions or blink on command, was difficult for her due to her visual impairment. She had to repeat the process multiple times before she completed it.
People with intellectual disabilities or low literacy levels face even greater barriers when they use digital financial services. Complex steps like e-KYC can be confusing without simple instructions, clear language, or intuitive navigation. Features, such as voice guides, screen readers, or alt text for buttons, can make these services more accessible for people with disabilities.
Limited education and communication create dependency
Access to financial services is even more difficult for people with disabilities from low-income backgrounds, many of whom have had limited educational opportunities. They are often never enrolled in special education programs, where they could have learned sign language or Braille. This limits how well they can interact with formal systems or navigate them.
The challenges are even more acute for individuals who developed disabilities later in life due to aging. While age-related impairments are common across income levels, older adults from low-income households face greater barriers. With limited education, they struggle to adapt to new conditions or learn assistive tools and systems that would help them access financial services. As a result, many low-income PwDs, especially older adults, often must rely on others when using financial services.
In Bogor Regency, Macih, a 64-year-old homemaker with visual impairments, participates in a group lending arrangement provided by a formal microfinance institution (MFIs). Based on the Grameen model, small groups of women meet weekly at a member’s home. During these meetings, a field officer facilitates savings deposits, withdrawals, loan applications, and repayments. Macih relies on her husband to manage the paperwork involved in financial transactions. He reads the documents to her and helps her sign them, as she had completed only elementary school and never had the opportunity to learn Braille.
Another participant in the same lending group arrangement is 66-year-old Iroh, an agricultural worker who relies on others for support. Her hearing impairment developed due to old age, and she never learned Bisindo, the Indonesian sign language. She sees little point in doing so now, as no one around her uses it. She struggles to learn at her age and relies on a fellow group member to communicate with the field officer.
Assistive tools fail to be prioritized, especially for women
Access to assistive tools, such as hearing aids, walking sticks, or wheelchairs, is also a challenge for many low-income PwDs. These tools are often too expensive, and when daily survival is at stake, they are not prioritized. This especially applies to women, who put family needs above their own.
Hana, a 56-year-old nasi uduk seller, has had difficulty walking since childhood. In recent years, she has only received a prosthetic leg through a government aid program. When asked if she would have taken a loan to buy it, she shared that she preferred to support her small business and daily needs. However, day-to-day life stays difficult without such tools, which include seemingly simple tasks, such as a visit to an ATM.
Low earnings keep formal finance out of reach
Around 69% of PwDs are engaged in the informal sector and earn just enough to meet daily needs. As a result, financial products that may seem affordable to non-disabled people can still be out of reach for low-income people with disabilities. For instance, opening or maintaining a savings account is difficult, as it typically requires a minimum of IDR 20,000 to open and IDR 10,000 (~ USD 1.23 to ~ USD 0.61) to deposit. For these people, formal financial services can be entirely inaccessible when combined with transportation costs, physical effort, and the fear of being turned away or needing assistance.
The way forward
The layered challenges that PwDs face when they seek access to financial services make the design of inclusive financial products more complex. Inclusive solutions must be genuinely expanded, not merely provided as a formality. They must address the real barriers that PwDs, especially those from low-income backgrounds, face every day.
Assistive technologies should be easy to use and accessible to low-income users with disabilities. They should be included early in the design of products and services so their real needs align with what is offered. In the long term, efforts should expand affordable access to tools and training that help people with disabilities use financial services independently.
At its core, financial inclusion is to ensure everyone can access and use financial products and services. PwDs, especially those from low-income communities, have been left out of the financial inclusion landscape for too long. To fully achieve true financial inclusion, the layered challenges they face must be recognized and responded to. Only then can financial products and services become truly inclusive for all.
This article was first published on Inside Indonesia platform on August 1st, 2025