Mobile money fuels record growth in formal savings across developing economies

More adults in developing countries, including Nigeria, are saving money through formal financial channels than ever before, according to the World Bank’s Global Findex 2025 report, which attributes the trend to the rapid rise of mobile money and digital finance.

The report, titled “Global Findex Database 2025: Financial Inclusion in the Digital Era”, reveals that 40% of adults in developing economies now save money using formal financial services such as banks, mobile wallets, and fintech platforms.

This marks a 16-percentage-point jump from 2021, the fastest increase recorded in over a decade.

In Sub-Saharan Africa, where mobile money services are most advanced, formal savings rose by 12 percentage points to reach 35%. The World Bank emphasized that mobile-phone technology is a key enabler of this financial inclusion revolution.

“Digital finance can convert this potential into reality,” said Ajay Banga, President of the World Bank. “We are working with countries to expand digital ID systems, modernize payment infrastructure, and create regulatory environments that support safe, inclusive financial growth.”

Globally, nearly 80% of adults now have a financial account, up from just 50% in 2011, reflecting tremendous progress in access to banking and digital finance.

However, 1.3 billion people remain unbanked—despite 900 million of them owning mobile phones, and more than half owning smartphones.

The report underscores Nigeria’s growing role in this digital shift. Mobile money operators in the country processed transactions worth ₦71.5 trillion between January and December 2024, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). This represents a 53.4% surge compared to ₦46.6 trillion in 2023.

Platforms like OPay, PalmPay, and Paga are expanding access to mobile-based financial services, penetrating both urban centers and underserved rural communities. These efforts are credited with driving greater savings behavior and boosting the financial inclusion rate in Africa’s most populous nation.

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In 2024 alone, 42% of adults in low- and middle-income economies made a digital payment to a merchant, compared to 35% in 2021. Governments and employers also contributed to the shift by paying salaries and benefits directly into bank or mobile accounts—now the norm for 75% of government payments and 50% of wages.

The report offers encouraging news on gender inclusion. In low- and middle-income countries, 73% of women now own financial accounts, up from 37% in 2011, significantly narrowing the gender gap.

However, digital transformation is not without risks. Despite high mobile penetration, only half of the 4 billion adults in developing countries who own a mobile phone use a password or other security measures, leaving them vulnerable to fraud, identity theft, and data breaches.

“More people than ever have the financial tools to invest in their futures. This is real progress,” said Bill Gates, Chair of the Gates Foundation, which co-funds the Findex report. “But we must continue working to make digital finance safer and more inclusive.”

As digital finance continues to reshape global economic participation, the World Bank calls for sustained investment in infrastructure, user education, and consumer protection to ensure long-term inclusion and security for billions worldwide.