How Making Fintech Access More Affordable Can Drive Inclusion

Fintech has let more people send money, save, borrow, and invest without relying entirely on traditional banks, thus democratising finance. Yet for many underserved individuals and communities, fintech still feels out of reach. In practice, these tools can sometimes come with extra costs that shut out the very people they’re meant to support. If fintech is going to include everyone, it has to be affordable, not just available.

Hidden Costs That Exclude People

When we talk about barriers to entry, cost is rarely just a line item. First, there are fees: transaction charges, minimum balances, monthly subscriptions, or penalty costs. Even small costs can dissuade someone with limited income from using fintech regularly.

Hidden costs often make it hard for people to get started. For instance, in casino gaming, some platforms advertise low entry fees, but hidden charges or high minimum bets can quickly add up, discouraging casual players. On the other hand, 10 dollar deposit casinos online attract players by letting them jump in quickly, try out new strategies, and enjoy the games without a big financial commitment. Similarly, in fintech, offering smaller minimum deposits, low fees, or affordable digital tools can open the door for people who might otherwise be excluded.

Beyond fees, affordability also includes access to devices and connectivity. While Europe enjoys high overall connectivity, the cost of connection still creates a significant barrier for the most vulnerable. In 2024, about 9% of EU households had no internet at home, and the number was much higher among low-income families, according to Eurostat.

Additionally, setting up a fintech account can be intimidating for those unfamiliar with digital ID systems or financial jargon. Verification processes and documentation uploads all raise the “friction cost” of adoption. When people find the sign-up process too complicated or time-consuming, they often abandon the process altogether.

Why Reducing Costs Matters for Inclusion

Lowering the cost to use fintech isn’t charity, it’s strategic. When more people can afford digital financial tools, more of them can access payments, credit, savings, and insurance. Small businesses can operate more efficiently, households can smooth income shocks, and communities as a whole can grow more resilient.

For example, in Germany, around three million small and medium businesses are looking for fintech tools to make their finances easier to manage and help them stay competitive. But a lot of these businesses still struggle to find digital tools they can afford.

Research indicates that while Germany leads in digital readiness, a significant portion of SMEs feel unprepared for digital transformation, with two in five companies expressing concerns about their readiness to adopt new technologies.

Globally, progress is visible. According to the latest Global Findex report, 79 % of adults now have a formal financial account, up from 51 % in 2011. Digital and mobile accounts account for much of this growth. Access is growing thanks to mobile technology, especially in less wealthy regions.

How to Build Lower-Cost, Inclusive Fintech

One path is partnerships: fintechs can team up with mobile network operators to subsidise data usage or zero-rate certain financial apps and enhance financial inclusion. If using your fintech app doesn’t count against your data limit, that removes a visible cost barrier. Some governments can support or mandate such zero-rating in ways that serve public interest.

Another lever is designing low-cost product models from the ground up. Freemium or pay-as-you-go models let users pay only when they transact, instead of being locked into subscription fees. Simple wallets or basic accounts with minimal overhead can encourage adoption without scaring off low-income users.

On the credit side, traditional credit scoring excludes many people with little formal history. Traditional credit scoring often leaves out people who don’t have a long banking history. Fintechs are changing that by using alternative data, like utility bills, rent payments, or regular cash flow, to assess risk more fairly. In the European Union, Open Banking rules (PSD2) let approved fintechs access a user’s bank transactions, with their permission. This helps them consider factors that traditional credit checks ignore, making it possible to offer loans to people who would otherwise be excluded because they have a limited credit history.

But this needs to be handled with care, especially when it comes to fairness and gender. Ensuring equitable treatment for women in fintech is crucial. Without clear checks, even systems that seem unbiased can treat women unfairly, giving them fewer chances or smaller loans, even though they often repay better than men.

Education also plays a role. Financial literacy and digital skills training, especially locally grounded in communities, can reduce the “cost” of intimidation or fear. When people feel confident navigating fintech apps, uptake improves.

Finally, open banking and better system connections help smaller fintechs compete, which pushes prices down. Instead of each company building its own closed system, sharing the same digital setup lets more businesses grow and offer cheaper services.

The Delicate Balance

Making fintech more affordable comes with trade-offs. Lowering fees too much can hurt sustainability, so many firms offer basic services free and charge for premium features. Regulation is also tricky, strict KYC/AML rules protect against fraud but can block people without formal IDs, so tiered compliance for lower-risk accounts helps. Algorithmic fairness is also key: biased credit models can worsen inequality if not carefully managed.