Busting the 10 Myths on Financial Inclusion

Myth No. 9

The "unbanked" cannot access credit because they do not have formal income, credit history, collateral or personal identification. This makes it difficult for lenders to understand their risk profile and assess their creditworthiness.


Digital technology enables clients to do financial transactions online, via for example, a mobile phone, and through the use of social networks. This also leaves digital footprints, which provide new ways to assess credit risk. Such information makes it possible for excluded potential borrowers to access formal credit.

An example is the millions of small and medium-sized enterprises who have access to near-instant credit from Ant Financial in China. This is done by utilizing analysis of e-commerce sales histories on Alibaba.com.


The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.

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