Promoting the meaningful use of relevant financial services

Access to finance is critical to small businesses’ development and growth, but few solutions account for their nuanced and diverse needs, resulting in a huge small business financing gap globally.

Small businesses are often more vulnerable to risks and shocks compared to larger enterprises. Insurance can be critical to small businesses better absorbing financial shocks, building assets, and managing risks.

Digitizing payments not only offers small businesses many benefits and efficiencies, it also provides positive spillover effects for their customers and suppliers, and strengthens financial inclusion efforts.

Embedded finance allows small businesses to access financial services through digital interfaces with which they already interact, with the potential to offer faster access to timely and tailored products.

Adopting digital financial services by small businesses can increase their access to finance and strengthen their financial inclusion. However, a lack of trust arising from consumer protection risks can limit the adoption process.

Globally, one in three businesses are owned by women, who often encounter obstacles in financing, owning, and growing a business. Digital financial services can have positive business and household impacts on women.