Research & Analysis
Global Landscape: Data Trails of Digitally Included Poor (DIP) People
- Digitally included poor (DIP) people that are defined as adults (>15) in low- and middle-income countries, earning under $5.5/day (PPP adjusted), with ownership or access to a phone are a growing segment.
- Data trails vary considerably across countries — thus, context matters.
- Gender differences exist in digital access and, as a result, in the generation of data trails. In cases where women have a level of digital access similar to that of men there are some important similarities in the data trails being generated by men and women.
- Telecom data (data on airtime top-ups, P2P transactions) is the most widely available digital data trail of DIP people but there are other important sources of data being generated.
- While smartphone users generate a very small data footprint in low- and middle-income markets, there are some patterns in the types of data trails they generate. These data trails are expected to grow as smartphone adoption increases.
- DIP people are currently being underserved by financial institutions, and this could be addressed by leveraging their digital data.
Many people who generate significant amounts of digital data are poor. Who are they? What sort of data are they generating? And how can it be used to make financial services more useful to them?
Data sharing can unlock a number of opportunities for the financial inclusion of poor individuals in EMDEs. To understand how, we must look at the various models of data sharing and how they may result in an inclusive data ecosystem.
Men and women engage differently with digital services - including digital financial services - because of, among other factors, gendered social norms that don't change nearly as fast as technology.
On this International Women's Day, we reflect on the state of women's digital and financial inclusion globally. At CGAP, we believe digital financial inclusion is a necessary condition for women to be digitally included and economically empowered.