Why Digital Finance

There is a revolution under way in finance, as digital technology is removing many of the obstacles that prevented access to services such as bank accounts and mobile money accounts for poor people in the U.S. and around the world.

An emerging digital economy, facilitated largely via mobile phones, can lower transaction costs to near zero. As mobile-phone ownership and cellular-signal coverage increase throughout developing countries, it will be easier for U.S. banks and other businesses to reach new markets by offering affordable financial services to the poor. What’s more, there’s an opportunity to design new products for this new market: financial services tailored to the unique needs of customers with limited incomes. Such innovative financial services have the potential to provide approximately 1.6 billion people with access to a bank account for the very first time -- opening up vast new markets and providing financial opportunities across the globe.

 Digital financial services can drive inclusive economic growth by creating an economy that includes and benefits everyone, but particularly women. In addition to these economic benefits, digital financial inclusion can support national security. It can also reduce costs for governments through efficient and effective revenue collection, subsidy reform, and government service provision.

Global digital financial inclusion is critical to our country and the world, as it supports global inclusive economic growth, and increases security and stability for financial markets.