The Potential of Digital Data: How Far Can It Advance Financial Inclusion?

This focus note enquires into how far emerging new sources of digital data can improve business model economics, reach more people, enable greater customization, and further financial inclusion. It highlights where and how potential benefits from the use of digital data can be realized, and recognizes the various challenges and risks involved. The note states that the use of digital data is playing a growing role in the area of financial services in low-income countries and hence, there are enormous opportunities from the use of digital data.