In 2023, global GDP growth surpassed 3%, yet 1.1 billion individuals remained below the poverty line, with poverty rates escalating and becoming more concentrated globally. Amidst this challenge, the worldwide mission to eradicate poverty and bridge income disparities continues. In 2020, China achieved the comprehensive elimination of poverty, offering practical solutions to global poverty alleviation efforts. In this endeavor, inclusive financial services played a pivotal role. Small and micro-agricultural loans equipped farmers with the capital to purchase seeds and fertilizers, while mobile payments enabled those in remote areas to sell their agricultural produce through live streaming, thus lifting countless individuals out of poverty with the support of inclusive financing.

Governments and societies globally recognize the significance of inclusive finance, with numerous countries and international organizations devising plans to advance its implementation. In 2016, China introduced the “Inclusive Finance Promotion Plan.” Inclusive finance is a central component of the United Nations’ “2030 Agenda for Sustainable Development.” G20 has formulated the “G20 Financial Inclusion Action Plan” as well. Many African and Asian nations have outlined strategies for developing inclusive finance.

Finance, a fundamental infrastructure of modern economic society, extensively impacts various facets of economic activity. Currently, a significant portion of the global population remains unbanked, with over half of the eligible population in many countries lacking access to financial services. The journey towards inclusive finance is long, yet for financial institutions, it presents both challenges and opportunities.

Both traditional financial institutions and internet innovators are increasingly incorporating inclusive finance into their services, targeting:

- Individuals with limited income,
- Disadvantaged communities,
- Agricultural workers in remote regions,
- Small businesses in need of financial liquidity.

The business model of inclusive finance includes:

- Advancing inclusive financial services through regulatory arrangements;
- Serving remote populations through the organization of small financial institutions;
- Establishing bank correspondent networks to reach a broader inclusive audience;
- Driving business innovation through technological advancements.

In the post-pandemic era, contactless services are becoming integral to the financial service landscape. Many countries have introduced policies and systems for contactless financial services at the regulatory level. Regulatory frameworks are evolving, and financial services are undergoing changes from processes to service content.

Across many countries and regions, mobile payments are burgeoning, with a cashless lifestyle becoming the new standard. In the post-pandemic era, the proliferation of cashless payments is set to quicken further. The swift growth of mobile payments, a core component and key driver of inclusive finance, opens up opportunities for the extension of inclusive financial services.

Online accounts, digital services, and intelligent business will deliver accessible inclusive financial services with a simple tap on a mobile phone. Physical wallets are evolving into electronic wallets, existing either independently or integrated within mobile banking, social media, or smart terminals. The access points to inclusive finance will be ubiquitous.

Financial inclusion aims to ensure that all individuals and businesses can access financial services without excessive consideration for technology and cost barriers.

To dismantle these barriers, it is essential to leverage technological advancements and focus on practical applications. In underdeveloped regions like rural and remote areas, establishing bank institutions is costly and yields low returns. Previously, basic financial services such as payments and transfers were extended through the agent model. However, with the spread of mobile network infrastructure, mobile phones have allowed individuals in these areas to access broader financial services, including transfers, payments, and small micro-loans. In some countries, financial service networks constructed with mobile SMS, proxy points, smartphones, and POS systems can effectively reach remote areas.

We need to integrate financial services into various scenarios to enhance the accessibility and convenience of these services. Embedding consumer finance products, such as overdrafts and installment loans, into transaction scenarios can ensure transaction authenticity, prevent fraud, and reduce processing costs.

Technologically, digital technology has shown robust support for the operations of inclusive finance. From customer acquisition to post-loan collection, cloud computing and big data are utilized to create comprehensive user profiles, conduct credit assessments, manage transaction risks, and facilitate loan recovery. AI is also playing a growing role, enabling more business processes to go paperless, online, and automated. It can be said that technological innovation is a key driver for the advancement of inclusive finance in the new technological landscape.

The primary focus of inclusive finance is to deliver affordable financial services to disadvantaged and low-income populations. However, the cost of these services remains a significant barrier to financial inclusion. A critical issue for the financial IT industry is how to leverage technology to effectively reduce service costs and enhance operational efficiency.

The demand for financial services among inclusive populations is characterized by small amounts, price sensitivity, low risk tolerance, and relatively high individual credit risk. When designing inclusive financial services, it is essential to consider overall risk exposure and leverage technological advancements to enhance processing efficiency and reduce service costs.