Global Challenges

An uneven recovery from the global pandemic. Tangled supply chains. Soaring prices. Political and social unrest. Low-income communities around the world are facing a tidal wave of economic challenges that threaten their livelihoods. According to the World Bank, pressures caused by the pandemic and rising inflation could push nearly 100 million people into extreme poverty, living on less than $1.90 per day. Meanwhile, the disparity between the developed and the developing world has never been greater—and it is growing.

Vulnerable people need help to get through this prolonged crisis and rebuild their lives. Accion partners with frontline financial service providers around the world who support the people and businesses historically overlooked — or poorly served — by traditional banks. These providers have found new ways to help their clients throughout the pandemic, including launching new digital products and training clients to use these innovative tools, which offer more security, flexibility, and opportunities than cash.

We continue to expand the reach, quality, and affordability of critical financial tools that help adapt against today’s challenges and build financial resilience. Ultimately, our work is laying the foundation for an inclusive global recovery that creates economic opportunity for everyone.

Many of us receive our bills and salaries on a regular schedule. That predictability lets us plan ahead.

But this isn’t the case around the world. Nearly two-thirds of the world’s poor make a living through agriculture, and many smallholder farmers collect money only once a year. To support their business and families, they must stretch their income from one harvest to the next.

High-quality financial services can make their lives much more manageable. Insurance can help reduce the shock of an unexpected drought or storm. Payment services let families quickly receive help from abroad. And savings accounts ensure that workers’ income remains safe.

Financial services can help ensure that families can put food on the table throughout the year, manage expenses, seize opportunities, and endure shocks. They make it easier for everyone to plan, prosper, and live better lives.

Together, financial services ensure that parents can put food on the table throughout the year, manage expenses, seize opportunities, and endure shocks. They make it easier for us to plan, prosper, and live better lives.

Around the world, families strive to provide a better future for their children. Whether it’s purchasing a home or paying for school, families everywhere work hard today to pursue their hopes and dreams.

Savings help us realize those aspirations. While cash can be stolen or misplaced, formal savings are secure — and earn interest. Savings are a cornerstone of financial health and represent one of the most basic indicators of financial inclusion.

But far too many people don’t have the tools they need to set money aside. In 2021, only half of adults worldwide saved money. In developing countries, only 42 percent of adults saved money, just over half said they could come up with funds in an emergency, and two thirds are “very worried” about their financial resilience.

Accion and our partners help millions of clients build their savings, strengthen their resilience, and plan for the future. We’re using technology to make it easier for workers to set aside money for college tuition, and helping financial service providers build mobile tools that encourage and reward clients for saving.

Far too many families are just one injury, illness, or natural disaster away from financial ruin. Without insurance, it’s harder for communities to rebuild or for families to recover from an emergency. Climate change only makes this problem worse: low-income households and businesses tend to be the most vulnerable to droughts, storms, and floods, and natural disasters can lead to smaller crops, poorer health, and weaker economic performance.

Accion and our partners are using new technologies to provide vulnerable clients with the financial tools they need to feel safe, prepare for the future, and rebound from unexpected crises.

Together, we’re providing the products and services that create stronger, more resilient communities and healthier families.

Fast, safe, and reliable digital payments save us time and money: without these payments, we’d need to travel and stand in line to pay every bill.

Unfortunately, that’s the case for billions of people and businesses. According to World Bank data, 1.8 billion people worldwide have no bank account or don’t use the one they have, and rely on cash to pay utility bills, buy goods, and manage daily life. In addition to wasting their time and money, cash is invisible to lenders: it doesn’t generate credit histories and prevents families and businesses from borrowing appropriate financing if they need it.

We’re working with our partners to make it easier to send and receive money electronically. From international remittance services that allow family members to send money home without incurring high fees, to providing debit and card readers to merchants, we’re helping people save time and money — and access the security and opportunities of the digital economy.

Small family farms produce about one-third of the world’s food. In sub-Saharan Africa and Asia, smallholder farmers provide 80 percent or more of the food supply. But these small businesses — and the communities that rely on them — are increasingly vulnerable. Two-thirds of poor working adults make a living through agriculture, and low-income households tend to be more affected by droughts, floods, and other extreme weather because of their reliance on agriculture.

Enabled by innovative technology, financial services can help farmers use insurance to protect their livelihoods and access the credit they need to purchase better seeds and fertilizer. Accion and our partners are helping farmers, their families, and the people they feed thrive.

Every entrepreneur needs financing to launch, grow, or improve their business. Obtaining financing is always challenging, but it can be nearly impossible for low-income entrepreneurs.

Underserved businesses are often too small to receive financing from traditional lenders or too large for microfinance institutions. Obtaining financing can be particularly challenging for women, people of color, and those in rural areas. Together, the world’s entrepreneurs face a financing gap of more than $5 trillion. That makes it harder for entrepreneurs to launch new businesses, hire more employees, and create new services that communities might need.

At Accion, we’re working with our partners to find innovative, scalable ways to give small businesses the financing they need. Together, we’re analyzing data, using satellite imagery, working with wholesale suppliers, and using other innovations to help entrepreneurs, their employees, and their families.