SINGAPORE (Sept 22): Digital finance — or the delivery of financial services through mobile phones, internet, or cards with a link to a digital payment system – could be the solution for individuals and businesses that lack access to savings and credit in emerging economies.

According to McKinsey Global Institute’s latest report, digital finance could boost the gross domestic product (GDP) of all emerging economies by almost 6%, or $3.7 trillion, by 2025. That would in turn help to create as many as 95 million new jobs across all sectors of the economy.

Breaking it down, about two-thirds of the increase would come from improved productivity from digital payments, a third would come from additional investment, and a small fraction would come from time savings for individuals.

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