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Growing Income, Growing Inclusion: How Rising Incomes at the Base of the Pyramid Will Shape Financial Inclusion

This report presents data and analysis on increasing incomes at the base of the pyramid. It analyzes existing financial services use among the bottom 40 percent of the global population and considers the ways this usage may change with rising income. The report analyses the trends at a national level through examples from South Africa, Mexico, and Nigeria. The document shows that increases in income at the bottom of the pyramid provide both an opportunity and a challenge for the financial inclusion community. The opportunity emerges from the large number of people moving into a new income bracket. The ability and propensity of people in the vulnerable class to use formal financial services is set to increase, forming an enormous new market. Income growth also poses a challenge because serving this market effectively requires providers to understand how and why a person may shift from informal to formal financial services. Providers must use this understanding to innovate in products, delivery, and marketing.