End poverty in all its forms everywhere

Fighting poverty by increasing financial inclusion and social protection via digital solutions

Power of digital

Digital solutions can help fight poverty by enabling access to financial institutions and services, new economic opportunities and better social protection. Digital technologies can also provide data for decision-making on policy development

Opportunities

• More accessible digital financial services
• More data-driven decision-making and targeted resource mobilization

Potential risks & digital harms

• People without a mobile are left out
• Successful cyberattacks cause more damage
• Societal norms and barriers can cause financial exclusion

M-Pesa

M-Pesa is an USSD based system allowing its 56 million customers to send, withdraw and deposit money with their mobile phones, even if they do not have a bank account. There is no fee to sign up or make deposits, and it has a tiered structure so even the poorest can use it

Examples of countries implemented

Kenya, Egypt, Ghana, Lesotho, Mozambique, and Tanzania

Power of digital

1. Customers can access multiple financial services through mobile phones
2. Low transaction fees increase financial inclusion
3. Secure system reduces the need for cash, ATMs and banks

“When M-PESA came to an area, women shifted their occupations, and their savings went up”
_{Tayneet Suri, Professor of Applied Economics, MIT}

GiveDirectly

GiveDirectly is the world’s largest NGO dedicated exclusively to delivering unconditional cash transfers to people living in poverty. It leverages innovations such as satellite imagery, AI, and phone usage data to identify and send digital transfers to those most in need

Examples of countries implemented

Uganda, Togo, Democratic Republic of the Congo, Liberia, Malawi, Mozambique, Nigeria, Rwanda, and Bangladesh

Power of digital

1. Solution simplifies donations to a few clicks only
2. Ensures funds donated reach individuals in need quickly and reliably
3. Low tech threshold for adoption: mobile wallet and feature phone

“[D]ata from 75 reports covering 35 countries [show] conditional and unconditional cash transfers improve the odds of being enrolled in and attending school”
_{World Bank Group}