Valdete Berisha

Inclusive credit — formal and semi-formal credit designed to reach low-income borrowers underserved by conventional finance — is one of the most celebrated and contested tools in development. This Focus Note reframes that debate. Rather than asking whether credit works, it asks: for which borrowers, through what product designs, and under what conditions does inclusive credit generate meaningful benefit rather than harm?

In 2025, new data from the World Bank’s Global Findex Database underscored an ongoing global trend in financial inclusion: while access to financial services has expanded significantly, financial resilience remains limited for many people. According to the latest Findex, 75% of adults in low- and middle-income countries (LMICs) now have a financial account, up 20 percentage points from a decade ago.