DIGITAL FINANCE COULD BOOST THE GDP OF EMERGING ECONOMIES BY $3.7 TRILLION BY 2025 AND BENEFIT NUMEROUS STAKEHOLDERS Our research takes a comprehensive approach to quantifying the potential economic and social benefits of digital finance. Individuals, businesses, financial-services providers, and governments all stand to gain. Collectively, the benefits can significantly boost GDP and job creation (Exhibit E5). Exhibit E5 Many stakeholders stand to gain from digital financial services 1 2 2014 XX Emerging South Asia Southeast Asia China economy total Africa and Middle East Latin America Eastern Europe and Central Asia Individuals 1.6 billion MSMEs and individuals 2.1 trillion Newly included in financial system New credit % $ billion 2 2,149 7 n/a 8 197 33 295 11 100% = 448 1.6 billion 455 753 14 25 Financial-service providers 4.2 trillion Government 110 billion New deposits Leakage reduction per annum $ billion $ billion 1,111 1,098 32 27 758 20 535 368 376 12 10 9 1 Stakeholder benefits are calculated using 2014 baseline values. 2 New credit in China has not been forecasted as current debt levels in the country are already very high. NOTE: Not to scale. Numbers may not sum due to rounding. SOURCE: McKinsey Global Institute analysis 8 McKinsey Global Institute Executive summary SIMILAR in report, with more content