Digital Accounts Drive Savings in Developing Economies, But Safety Nets Remain Fragile

The rapid expansion of digital financial services is reshaping saving habits in developing economies. With greater access to mobile banking and online accounts, more adults are beginning to build financial security. However, despite these promising trends, significant challenges remain when it comes to ensuring that people have reliable safety nets during times of crisis.

A Surge in Savings Through Financial Accounts

In 2024, 40% of adults in developing economies reported saving money in a financial account, a remarkable rise from just 24% in 2021. This increase highlights how digital accounts, mobile wallets, and online banking are providing more convenient, accessible ways for people to set aside funds. The growth reflects both technological innovation and stronger efforts by governments and financial institutions to promote financial inclusion.

Digital accounts not only make saving easier but also help people transition from informal savings methods—such as cash kept at home or savings groups—to secure, regulated systems that protect money and encourage consistent financial habits.

Gaps in Emergency Readiness

While saving levels are on the rise, the picture is less reassuring when it comes to financial resilience. Only 55% of adults have access to rainy-day funds when emergencies strike. This means nearly half of the population in developing economies remains vulnerable to unexpected health expenses, job loss, or natural disasters.

Having access to emergency funds is a critical part of financial security, but many people still struggle to build this safety cushion. The data suggests that while digital accounts encourage saving, low and irregular incomes, inflation, and weak social protection systems limit people’s ability to prepare for financial shocks.

The Bigger Picture: Inclusion With Fragility

The numbers paint a mixed picture. On one hand, more people are saving than ever before, thanks in large part to digital transformation in the financial sector. On the other, the fragility of household safety nets shows that inclusion alone is not enough—what matters is whether savings are sufficient and accessible during times of need.

Moving Forward

To strengthen financial resilience in developing economies, three strategies are crucial:

1. Promoting financial literacy so that individuals understand how to save and manage money effectively.

2. Encouraging emergency savings products within digital platforms, making it easier for people to set aside small amounts regularly.

3. Strengthening social protection systems, including government-backed savings schemes and insurance programs, to provide a fallback for vulnerable households.

Conclusion

Digital accounts are undeniably transforming financial behavior in developing economies, pushing more adults toward formal savings systems. Yet, as the data shows, the rise in savings has not fully translated into stronger safety nets. Building true financial resilience will require not just access to digital accounts, but also policies and tools that empower households to withstand economic shocks.

The progress is encouraging, but the journey toward universal financial security is far from complete.