The ‘invisible’ millions: banking’s new frontier

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Recorded16 Jul 2025

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Show notes

From microloans for farmers to free savings accounts for the ‘unbanked’ to customised insurance for gig workers to a cheaper, faster way for migrants to send money to loved ones: a growing range of services is helping many of the world’s least advantaged citizens increase their financial resilience. Previously, banks and other traditional lending institutions overlooked these customers. But as impact director Ed Whitten explains, by backing the companies now involved, you have an opportunity to improve people’s lives and achieve strong growth. Background:Ed Whitten is an impact director in Baillie Gifford’s Positive Change Strategy. Its dual objective is to provide our clients with attractive returns while contributing to a more inclusive, healthy world. Whitten’s role is to ensure that the companies it holds fulfil the second part of that pledge. In this episode, he explores the topic of financial inclusion, explaining why the companies involved need to do more than simply provide access to loans, insurance and money transfers. Topics include how firms can use data and apps to deliver customised services that address specific people’s needs while protecting them from indebtedness. Whitten also explains how conversations with the companies Positive Change backs can nudge them towards better outcomes, such as providing customers with better financial education. And he explores the importance of helping people gain financial resilience against the effects of climate change and other events that could otherwise devastate their livelihoods. Companies covered include: Nubank – the digital-only bank used by most Brazilian adults that’s also growing in Mexico and Colombia. Grab – the south-east Asian ride-hailing and delivery service that provides loans and insurance to drivers and merchants using its platform. Remitly – the remittance service offering migrants a quick, low-cost and reliable way to transfer money to family and friends. HDFC Bank – the Indian lender expanding its rural branch network to explain face-to-face how its services can put customers on a better financial path. Resources:Case study: MaligaNubank’s Beyond Access studyPositive Conversations 2024The Song of the CellTrip Notes: Brazil (UK version / Ex-UK version) Companies mentioned include:ChimeBank Rakyat IndonesiaGrabHDFC BankMercadoLibreNubankRemitly Timecodes:00:00 Introduction02:05 From the British Army to impact investing03:40 A sustainable, inclusive, healthy world04:25 The different types of financial inclusion05:40 Eyes open to the risks of indebtedness06:45 Volatile repayment rates07:35 Beyond accessibility: the personalisation of products09:05 Partnering with CGAP and other development bodies10:25 Nubank’s Caixinha money boxes12:45 Nubank’s Mexican banking licence14:15 Ensuring growth comes with impact15:20 Grab’s loans and insurance16:40 Grab’s data-driven approach to risk19:45 The fast growth of remittances 21:25 Remitly’s cheaper money transfers22:35 Gaining market share from Western Union23:40 HDFC Bank’s expanding rural branch network24:55 Financial inclusion in advanced economies26:55 The ‘lucrative customers of the future’28:15 Book choice

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