When we talk about empowering the communities in which we operate, one of the key areas that stands out is financial inclusion and literacy.
At its core, financial inclusion is about making financial services accessible and usable for everyone. When individuals have access, they are better equipped to navigate changing economic conditions and take advantage of emerging opportunities.
Unfortunately, the reality remains sobering, with a significant number of people still excluded. Globally, about 1.7 billion adults remain unbanked, lacking access to formal financial services or mobile money.
The reasons are clear. For many, financial services remain out of reach, whether due to physical access, limited understanding of the value of banking, or lack of informal sectors.
In some cases, the barriers are structural, with stringent requirements for opening accounts or accessing credit making it difficult for many to even get started.
Across Africa, the savings culture remains relatively weak, influenced by low income, limited financial management skills, and broader cultural and socio-economic factors. This is where financial literacy becomes critical. Without a clear understanding of financial tools, even those with access may struggle to use them effectively, ultimately limiting the impact of financial inclusion.
Closer home, the picture reflects this reality. Kenya, for instance, continues to lag behind its regional peers.
As of 2021, the country’s savings rate stood at about 13 per cent, compared to over 20 per cent in Uganda and Tanzania, despite having a higher per capita income. This gap is closely linked to financial literacy levels and everyday realities facing household, including constrained incomes, declining savings, and increasing difficulty in meeting financial obligations.
This is where financial inclusion becomes critical, ensuring that people can access essential financial tools, savings and payment solutions without unnecessary barriers. When effectively implemented, this becomes a powerful driver of economic growth, supporting job creation, empowering vulnerable groups, and contributing meaningfully to poverty reduction.
Technology, particularly artificial intelligence, is now beginning to reshape this landscape. Traditional banking models have often excluded underserved communities, but AI is helping to break down these barriers.
Case in point, in credit scoring, many individuals, especially small business owners and those in the informal sector, are often locked out due to lack of formal credit histories.
AI addresses this by leveraging alternative data, such as mobile money activity, transaction patterns, and cash flow behavior, to build a more complete picture of a person’s financial life.
This shift also presents a significant opportunity for women. In Kenya, many women are starting businesses out of both ambition and necessity, yet still face challenges in accessing credit.
Traditional systems often fail to capture how they earn and manage money. AI, through the use of alternative credit scoring methods such mobile transaction histories, can help bridge this gap and unlock growth opportunities.
Beyond credit, AI is enhancing how financial services are delivered. From personalised product development and improved fraud detection, institutions are becoming more efficient and customer centric. Importantly, technology is reducing reliance on physical infrastructure, making services more accessible to individuals in remote and underserved areas.
That said, this progress must be approached responsibly.
Concerns around data privacy, algorithmic bias, and transparency are valid, particularly in a sector as sensitive as finance. If not properly managed, these risks can deepen the existing inequalities. This underscores the need for responsible AI deployment, guided by fairness, security and transparency, alongside clear regulatory frameworks that protect consumers while enabling innovation.
At National Bank, we recognize that while AI presents a powerful opportunity to accelerate financial inclusion, technology alone is not enough.
Sustainable progress will require the right policies and a clear focus on the people we aim to serve. Ultimately, this is what will define the future of inclusive banking.
The writer is the ICT Director, National Bank of Kenya
