Digital Transformation and Climate Finance Drive Inclusive Growth in Emerging Markets
08 November 2026
Inclusive finance providers are rapidly digitizing their services, with mobile wallets and AI-driven credit models becoming key enablers for low-income clients. In 2025, Bank Asia in Bangladesh plans to allocate 40% of its loan portfolio to SME and retail loans through its digital transformation strategy. The bank is working with government agencies, international organizations, fintechs and e-commerce platforms to expand access, reflecting a broader shift toward digital, mobile-first services in emerging markets.
Mobile wallets have become critical entry points for the underserved. Ant Group's operations, for example, provide credit tech solutions to several leading Southeast Asian mobile wallets, contributing to significant growth in their user base by embedding credit functionality. This digital lending service aims to close the MSME financing gap by partnering with platforms and leveraging AI and digital innovations.
Alternative data sources are proving transformative. In Africa, digital lenders and agricultural fintechs are increasingly using mobile money usage, satellite imagery and farm activity data to build credit models for smallholder farmers without formal financial records. This approach helps unlock access to capital for climate-resilient assets.
AI is revolutionizing credit assessment. Lenders are combining cloud technology, advanced analytics and alternative lending models to reduce processing times, enable automated decisions and customize credit terms. NeoGrowth in India, for instance, uses digital cashflows and data-driven models to provide collateral-free digital loans with fast disbursement for MSMEs without formal credit histories.
Greening financial inclusion
Sustainability has become a central theme in inclusive finance. The EBRD has prioritized digital loan products for green initiatives in its strategic planning. Fintechs in Africa, by incorporating climate-relevant datasets, are facilitating capital access for smallholders to invest in climate-resilient solutions.
In Pakistan, the Khushhali Microfinance Bank has established a US$50 million green financing program in partnership with the International Finance Corporation. The initiative supports projects aligned with climate agreements, including renewable energy and efficiency improvements.
More on this is available via mobile friendly casino sites.
Regulatory measures are accelerating green finance in emerging markets. Authorities in Kenya and Malaysia are among those actively promoting sustainable financial products and investment frameworks.
Digital green bonds have emerged as an innovative tool. In 2024, several institutions announced goals to raise significant green funding through digital bond offerings. Indonesia, having issued its first digital green bond in 2023, plans additional offerings through this channel.
Environmental, social and governance factors are being increasingly integrated into financial inclusion strategies. Central banks and financial institutions across multiple countries are actively managing ESG risks while expanding microfinance and inclusion programs.
Digital transformation, AI-driven credit innovation and sustainability integration are reshaping financial inclusion in emerging markets. While digital lending accelerates progress, concerns about responsible borrowing require balanced regulation. Looking forward, the combination of digital and green finance offers significant opportunities to build more resilient financial ecosystems in underserved communities.