OP-ED: Is fintech truly advancing financial inclusion—or just reshuffling the deck?

At this year’s Fintech for Inclusion Global Summit, hosted by Accion in London last week, I found myself caught between two opposing forces: the polished, well-intentioned rhetoric of financial inclusion advocates on one hand, and a nagging sense of dissatisfaction with how narrowly we seem to define "progress" on the other. It’s a tension I’ve grappled with for years, one that crystallised sharply during discussions with Michael Schlein, CEO of Accion, and other prominent global industry leaders.

Schlein’s opening remarks were predictably optimistic, touting the power of fintech to unlock opportunities for underserved populations. He shared that over its 60-plus years of operation, Accion has impacted 440 million people worldwide, helping them access essential financial services. The company claims that more than 168 million were reached in 2023 alone—in part, demonstrating the exponential impact potential of modern fintech innovation. Last year, about 42.1 million individuals actively used solutions provided through Accion's partnerships and investments, which include $475.8 million in actively managed impact assets.

Yet, as I reflected on the summit's broader narrative, I wondered: Are we shrinking a complex, multifaceted problem - namely, poverty and inequality - into a series of product or platform project iterations that feel achievable, measurable and palatable to stakeholders? Are we reducing financial inclusion to a checklist of innovations, while missing the bigger picture and the uncomfortable reality of the pervasive systemic challenges that create and perpetuate dark(er) futures?

Contrarian critiques

I often think of people like Iyinoluwa "E" Aboyeji, founding partner and CEO of Future Africa, who are vocal in their criticism of how the financial inclusion agenda has unfolded, particularly in Africa. Aboyeji points out that despite decades of effort, financial inclusion has done little to fundamentally alter the economic trajectory of the poor. He advocates for more radical, innovative approaches like customised products, agent-based banking and a regulatory framework that encourages true system disruption.

While I appreciate his sensibilities and resonate with some of his provocative critiques, I am not ready to dismiss the rhetoric and practices of incumbent global financial institutions, impact investors, and governments as entirely hollow. Many of these actors, while admittedly inelegant at times, strike me as well-meaning and genuinely motivated by the desire to make a difference. However, in their pursuit of demonstrating progress, they often oversimplify the challenge.

It is tempting to frame financial inclusion as a technology product or platform-led innovation exercise—something that, once "solved", will finally unclog the pipes of poverty and allow socio-economic progress to flow unhindered. This framing makes the problem feel manageable, but it also reduces the very real complexity of the task at hand. Poverty is sticky, nuanced and deeply intertwined with political, social and economic factors that no single single product or service adoption drive can fully address.

Narrow measures of progress

A prime example of this tendency toward oversimplification came during a panel with Monzo CEO TS Anil and Mastercard chief product officer Jorn Lambert, moderated by Amee Parbhoo, managing partner at Accion Venture Lab. In her tenure with Accion, Parbhoo has led strategy and orchestrated the success of their investment activities globally, including in Africa.

While it was evident that Monzo and Mastercard have made strides in expanding financial services to more people, the conversation largely revolved around product innovation—think more secure credit cards, smarter banking apps, seamless payment systems, improved credit access and cultivating widespread adoption of these products. While that focus has its place in the broader scheme of engineering progress, I couldn’t help but feel deeper questions were being side-stepped.

For context, Monzo is the UK's leading digital bank, serving over 8 million customers. Anil is a highly regarded leader in financial services and payments, with over 25 years of experience in retail banking. Prior to joining Monzo, he held senior global roles at Visa, Standard Chartered, Citigroup and Capital One. His corporate calling card is launching new products, developing innovative payment technologies and steering businesses toward new growth opportunities. Anil is perhaps most widely admired for bringing Monzo back from the brink of ruin in 2020 to profitability by 2023, confidently co-leading Europe’s on-going neobank revolution alongside a select group of challengers.

When I asked him whether he ever worries that his product-led corporate innovation efforts might fall on the wrong side of history—that is, in terms of the systemic change we all sense is needed for true financial inclusion—I was pleasantly surprised by his thoughtfulness and willingness to demonstrate vulnerability. He admitted that, yes, there is always a risk that we might be missing the forest for the trees, and that he would carry the question into his next quiet time alone with his own thoughts. And that’s exactly the point: Are we focusing too much on access and not enough on impact?

Crypto dispensation

Take, for instance, the aversion to blockchain tech and crypto applications that I picked up among some of the more influential summit participants. Now, I’m no blind fanboy of blockchain-enabled fintech, nor do I buy into the idea that cryptocurrency is a panacea for the world’s financial woes, as many whitepaper theorists suggest. After all, admittedly, the crypto lobby, often led by greedy speculators more interested in wealth extraction than fostering widespread socio-economic participation, has done little to present the trend towards mainstream crypto adoption as a net positive for society.

Nevertheless, its appeal in places like Nigeria and Zimbabwe, where traditional financial institutions have struggled to meet the basic needs of everyday citizens, cannot be casually dismissed. People in these regions are eagerly reaching for moonshot alternatives that completely challenge the status quo, however suboptimally conceived or awkwardly perpetuated.

Oversimplification is the enemy

That said, I do not subscribe to the binary view that Aboyeji and others sometimes espouse, which neatly divides the world into obviously good and bad actors. The reality, as I see it, is more complex and ought to keep us all humble. While there are indeed good outcomes to strive for, even the most noble efforts can yield unintended negative consequences. 

Many of the individuals I’ve personally encountered who are behind institutional financial inclusion initiatives are conscientious, and their oversimplifications are often driven by the desire to achieve real, measurable progress. They face the same challenge we all do: balancing honest ambition with pragmatism and turning lofty ideals into tangible outcomes to which we can hold ourselves accountable.

This, I believe, is where the real challenge lies—in pushing for more nuanced narratives and approaches. Financial inclusion should not be reduced to a series of product launches or platform innovations. Nor should we cling to the notion that simply increasing access to digital financial services is enough to lift people out of poverty. Instead, we must grapple with the messy, interconnected drivers of economic inequality and acknowledge that financial inclusion a la fintech is only one piece of a much larger puzzle.

In quiet moments, alone with our thoughts, we must ask ourselves: Are we content to oversimplify in the name of progress, or are we willing to engage with the full complexity of the problem—even if it means acknowledging that we are only scratching the surface?

Editorial Note: A version of this opinion editorial was first published by Business Report on 17 September 2024.