The label 'Global South' is being challenged by financial experts, who argue it fails to reflect the dynamic technological advancements in these regions. This debate was sparked at the Singapore Fintech Festival 2025, where leaders like Michael Schlein and Richard Verma highlighted the innovative potential of these markets, unburdened by outdated systems. They believe the term 'Global South' is outdated and doesn't acknowledge the tech boom in these areas.
But here's where it gets controversial: Verma claims that developed nations are grappling with similar financial inclusion issues, blurring the lines between 'emerging' and 'developed' markets. This perspective challenges traditional classifications, suggesting a more nuanced approach is needed.
The discussion also shed light on the underserved, with Veerathai Santiprabhob emphasizing that financial distress isn't exclusive to emerging markets. He cited a Federal Reserve survey showing that only 63% of US households have sufficient savings for a $400 emergency expense.
The remaining unbanked population, around 1.3 billion, presents a significant challenge. Schlein categorized this group, noting that two-thirds are smallholder farmers, requiring tailored strategies. The key to inclusion, he suggested, is Digital Public Infrastructure (DPI), which provides essential digital identity and payment systems.
However, DPI implementation faces a hurdle: a lack of coordination among regulators, as Santiprabhob pointed out. This coordination failure hinders the creation of a unified, open architecture. Hofman agreed, emphasizing the need for common infrastructure to reach the next billion unbanked individuals.
Santiprabhob also warned about the potential pitfalls of excessive financial access, leading to fragility. He urged countries with large banked populations to prioritize financial well-being.
The panel concluded with a call to action: a responsible global rollout of DPI, supported by a new international governance framework. Verma, Santiprabhob, and Kawasaki all stressed the need for global rules and improved knowledge sharing. This proposal aims to address the challenges of financial inclusion and ensure a more inclusive and stable financial future.
And this is the part most people miss: the direct correlation between impact and profit in financial inclusion investments. Schlein and Kawasaki highlighted the potential of capital markets and blended finance to mobilize funds, but also pointed out the legal and regulatory gaps in many Southeast Asian countries.
This thought-provoking discussion raises questions: Is the 'Global South' label truly outdated? How can we ensure financial well-being while promoting access? What role should governments play in DPI implementation? Share your thoughts in the comments, and let's continue this engaging conversation!
