How banks can better serve South Asia’s unbanked and underserved

South Asia has made significant progress on financial inclusion, but access still varies considerably across the region. According to the World Bank’s Global Findex 2025, account ownership stands at 89% in India and 82% in Sri Lanka, compared with 60% in Nepal and 43% in Bangladesh.

Account ownership, however, is only one measure of inclusion. Many people who have an account use it rarely or cannot access the broader services they need - from everyday payments and affordable credit to savings, insurance and investments. The challenge is therefore not simply to open more accounts, but to make financial services genuinely useful.

Several obstacles stand in the way. Cash remains familiar, widely accepted and trusted, particularly among people with limited financial or digital confidence. Customers may also face high costs, complex documentation, language barriers or products that do not meet their needs. In remote communities, maintaining a traditional branch network can also be expensive.

Mobile technology can help banks overcome some of these barriers. Bangladesh, for example, has demonstrated how widespread mobile-phone use can support digital onboarding, KYC, payments, credit and insurance - extending services beyond the physical branch network.

Banks are well placed to lead this shift. They have established customer relationships, experience operating in regulated markets and insight into how people manage their money. Used responsibly - and with appropriate consent and privacy safeguards - customer data can help banks identify unmet needs, design more relevant products and offer timely financial guidance.

However, legacy banking and payment platforms often make it costly and slow to support new payment methods, smaller-value products or partnerships with specialist providers. More adaptable platforms can help banks introduce services incrementally, integrate with local digital ecosystems and respond as customer needs evolve.

Financial inclusion is not simply about opening more accounts. It is about giving people safe, affordable and practical ways to manage their money. To achieve this, banks need both the technology and the understanding to support customers effectively.