Financial Inclusion
Sparkassen Finance Group:
A Success Model of Financial Inclusion for Entrepreneurs
Financial Inclusion on a Global Scale
Entrepreneurship plays a critical role in driving national economic growth and development. According to the World Bank, small and medium-sized enterprises (SMEs) represent approximately 90% of all businesses and provide more than 50% of global employment. These enterprises are especially important in developing economies, where they contribute significantly to job creation and poverty reduction.
Data from the Global Entrepreneurship Monitor (GEM), which surveyed 65 global economies, shows that more than 582 million people worldwide are currently engaged in entrepreneurial activity, either by owning or starting a business. This reflects a strong global entrepreneurial spirit and the importance of enabling environments for startups and small businesses.
Meanwhile, the global average for financial inclusion, which measures access to useful and affordable financial products and services is around 70%. Improving financial inclusion is key to empowering entrepreneurs, particularly in underserved communities, by providing them with the tools and resources needed to start and grow businesses.
Importance of Financial Inclusion:
Financial inclusion is a key driver of equitable economic growth and social development. It ensures that individuals and businesses, especially those in underserved or low-income communities, can access essential financial services such as savings, credit, insurance, and digital payments. This access empowers people to manage their finances, invest in education or health, build resilience to economic shocks, and start or grow businesses.
In Türkiye, financial inclusion has seen steady progress, with 69% of adults owning a bank account in 2021, according to the World Bank. However, this remains below the global average of 76%, and a gender gap persists as per financial inclusion, 74% of men have accounts compared to only 64% of women. Access to formal credit is also limited, with just 19% of adults reporting borrowing from financial institutions. This poses a challenge for the country’s nearly 4 million SMEs, which represent 99.8% of all enterprises and employ over 70% of the workforce.
Expanding financial inclusion in Türkiye is especially critical for empowering women, youth, and refugees, and for unlocking the full potential of entrepreneurship, job creation, and inclusive development across the country.
Economic Growth and SME Development
- SMEs as the Backbone of the Economy:
SMEs represent 99% of all registered businesses in Türkiye and are key drivers of economic activity, contributing significantly to GDP and employing over 70% of the workforce. - Access to Finance as a Growth Catalyst:
Enhanced access to credit, savings, and other financial services enables SMEs to scale operations, adopt new technologies, enter global markets, and improve productivity, ultimately fueling national economic growth. - Empowering Underrepresented Entrepreneurs:
Financial inclusion plays a critical role in encouraging entrepreneurship among youth and women, by providing tailored financial products such as microloans and access to capacity-building services like business development training and mentorship. - Generating Wider Socioeconomic Impact:
When entrepreneurs succeed, the benefits extend beyond individual business owners, supporting environments supporting entrepreneurs, creating new jobs, and strengthening community development. This multiplier effect amplifies the positive outcomes of financial inclusion across society.
Strengthening Resilience Against Economic Shocks
- Financial stability is crucial for businesses facing economic volatility, high inflation, and currency fluctuations.
- Access to formal banking, savings, and insurance services helps individuals and businesses manage financial risks and cope with unexpected shocks.
- Financial inclusion offers safety nets such as savings accounts, insurance, and emergency credit, enabling households to handle sudden financial challenges.
- Low-income families benefit by being better prepared for economic shocks like job loss, health emergencies, or rising costs.
- Micro enterprises rely on financial services to ensure business continuity and faster recovery during crises.
- In Türkiye, many micro-scale enterprises cannot access inclusive financial systems that are vital for their survival during global crises such as natural disasters, economic recessions, or pandemics, due to a lack of financial knowledge
- Overall, financial inclusion builds economic resilience, empowering vulnerable populations to navigate uncertainty and maintain long-term financial stability.
Supporting Refugees and Vulnerable Populations
- Türkiye’s Role as Host Country:
Türkiye is home to the largest refugee population in the world, including over 3.5 million Syrians under temporary protection, making financial inclusion a critical component of both humanitarian response and long-term development. - Pathway to Social and Economic Integration:
Financial inclusion enables vulnerable groups to access formal financial services such as savings accounts, digital payments, and credit, which are essential for securing employment, launching businesses, and building stable lives in host communities. - From Dependency to Self-Reliance:
By offering microfinance, vocational training, and digital banking tools, financial inclusion empowers vulnerable groups to become economically active and contribute to local economies, reducing reliance on humanitarian assistance. - Strengthening Community Cohesion:
Inclusive financial systems help foster social cohesion by integrating vulnerable populations into the economic fabric of society, benefiting communities through increased stability and shared prosperity.
Promoting Digital Financial Services and Fintech Innovation
- Leveraging Mobile Penetration:
Türkiye’s high mobile and internet penetration makes it well-positioned to adopt digital banking and fintech innovations as drivers of financial inclusion. - Closing Access Gaps Through Technology:
Expanding services such as mobile banking, e-wallets, digital lending, and online payment platforms can significantly improve access to financial services—especially for those in underserved and remote areas. - Boosting Efficiency and Reach:
Fintech solutions offer cost-effective, scalable, and user-friendly platforms, enabling broader financial participation and fostering innovation in the financial sector.
Increasing Financial Literacy and Awareness
- Addressing the Financial Inclusion Gap:
In Türkiye, one-third of the population remains unbanked, and only 54% of women hold bank accounts, highlighting persistent gender and access disparities (J.P. Morgan, 2019; World Bank). - Empowering Consumers with Knowledge:
Promoting financial education and awareness equips individuals with the knowledge to make informed decisions on savings, budgeting, credit, and investments. - Reducing Financial Vulnerability:
Financial literacy campaigns help prevent over-indebtedness and financial mismanagement, enabling more responsible use of financial products and services.
Supporting Rural Development and Agricultural Financing
- Addressing Rural Access Gaps:
As of 2023, 22.54% of Türkiye’s population resides in rural areas, where access to formal financial services is often limited and uneven. - Enabling Agricultural Growth:
Expanding rural banking, microfinance, and agricultural credit schemes can help farmers invest in sustainable practices, access insurance, and adopt modern technologies. - Fostering Inclusive Development:
Strengthening rural financial infrastructure supports economic inclusion and resilience in agricultural communities, reducing rural-urban disparities.
Facilitating Government Social Welfare and Cash Transfers
- Enhancing Delivery of Public Services:
Financial inclusion supports the efficient, secure, and transparent delivery of government benefits such as pensions, subsidies, and emergency assistance through digital payment channels. - Improving Transparency and Reducing Leakage:
Transitioning from cash-based systems to digital payments reduces fraud, administrative costs, and delays, thereby improving trust and accountability in public welfare programs.
Benefits of Financial Inclusion
Financial inclusion is a powerful enabler of economic growth, poverty reduction, and social development. By providing credit, savings, and investment opportunities, it helps individuals and small businesses generate income and lift themselves out of poverty.
It promotes entrepreneurship through microloans and business financing, fostering innovation, and local development. Financial inclusion also enhances financial stability by reducing dependence on informal lenders and offering secure means to save, borrow, and manage risks through insurance and emergency funds. It plays a critical role in empowering marginalized groups—such as women, youth, and low-income or rural populations—by promoting financial independence and improving access to essential services like education and healthcare.
Additionally, it drives technological innovation through digital banking, mobile payments, and fintech platforms, making financial services more accessible and cost-effective. For micro, small, and medium-sized enterprises, financial inclusion provides vital working capital, supports job creation, and improves supply chain efficiency. Governments also benefit from greater transparency, improved tax collection, and more efficient delivery of social welfare programs through direct benefit transfers. Ultimately, financial inclusion strengthens the resilience of individuals, businesses, and communities by enabling long-term planning, emergency support, and faster recovery from economic shocks or natural disasters.
Economic Growth and Poverty Reduction
- Expands access to credit, savings, and investment tools, enabling individuals and small businesses to engage in productive economic activities.
- Lifts people out of poverty by providing the financial resources necessary for income generation and financial independence.
- Promotes entrepreneurship through microloans and tailored financial products that help launch and grow businesses.
Increased Financial Stability and Security
- Reduces dependence on informal lenders, who often charge high-interest rates and pose greater financial risks.
- Provides secure and regulated platforms for saving money and reduces risk.
- Improves financial risk management by facilitating access to insurance, pensions, and emergency savings tools.
Empowerment of Marginalized Groups
- Enables financial independence for women, youth, and low-income populations, helping to close social and economic gaps.
- Boosts participation in the formal economy among rural and historically underserved communities.
- Supports upward mobility by easing access to education loans, health financing, and other life-improving financial services.
Digital and Technological Advancements
- Fuels innovation in financial services through digital payments, mobile banking, and fintech applications.
- Expands financial service reach with mobile wallets and app-based lending, particularly in remote or underserved areas.
- Cuts costs and improves transparency, making transactions more efficient and traceable.
Strengthened Micro, Small, and Medium Enterprises
- Provides essential capital for micro, small and medium sized enterprises to start, scale, and sustain operations.
- Stimulates job creation and supports localized economic development across sectors.
- Improves operational efficiency through better access to digital payments and trade finance solutions.
Enhancing Efficiency in State-Sourced Funds
- Streamlines welfare distribution through direct benefit transfers, minimizing administrative delays.
- Supports economic governance by improving data transparency and enabling more effective policy implementation.
Enhanced Resilience to Economic Shocks
- Promotes long-term financial planning and the accumulation of emergency savings.
- Facilitates access to insurance products, protecting individuals and families against health, employment, or disaster-related financial crises.
- Strengthens recovery capacity for disaster-affected or crisis-hit communities through access to microfinance and emergency credit.
Global Impact of German Sparkassenstiftung for International Cooperation
The German Sparkassenstiftung for International Cooperation plays a crucial global role in advancing financial inclusion and strengthening financial systems by transferring the proven German Sparkassen model to developing and emerging economies. Operating in over 50 countries, German Sparkassenstiftung for International Cooperation contributes to the UN Sustainable Development Goals (SDGs) by promoting poverty reduction, gender equality, decent work, and inclusive economic growth. Through capacity building, technical assistance, and tailored training programs, German Sparkassenstiftung for International Cooperation empowers local financial institutions and communities to provide accessible, responsible, and sustainable financial services.
In Türkiye, Sparkassenstiftung has a targeted focus on supporting micro, small, and medium-sized enterprises, which make up 99% of businesses in the country. Despite their economic significance, many SMEs struggle with limited access to credit and other formal financial services. German Sparkassenstiftung addresses these challenges through a dual approach: improving access to finance and delivering capacity-building initiatives.
Through partnerships with financial institutions, German Sparkassenstiftung for International Cooperation facilitates access to affordable credit, microfinance solutions, and digital banking services. Simultaneously, Sparkassenstiftung implements different training methods and offers comprehensive entrepreneurship training on topics such as business literacy, climate resilience, and the use of interactive tools like the Micro Business Game and Farmers Business Game. These trainings target potential and existing entrepreneurs, helping them develop the skills needed to start and sustain businesses.
German Sparkassenstiftung for International Cooperation also supports financial institutions with technical assistance in areas such as SME finance and risk management and strengthens public institutions and NGOs through specialized tools like the Sustainable Finance Compass, Risk Radar, and Microfinance Institutions Management Game.
Together, these global and national efforts demonstrate commitment of German Sparkassenstiftung for International Cooperation to fostering inclusive financial ecosystems that empower individuals, strengthen SMEs, and promote resilient, equitable economic development.
Sparkassenstiftung Türkiye: A Leading Model for Financial Inclusion of SMEs
Sparkassenstiftung Türkiye was officially launched in September 2021 with a mission to improve financial literacy and business skills among potential and existing entrepreneurs in Türkiye. The institution focuses on empowering potential and existing entrepreneurs through financial and business literacy trainings, coaching programs, and access to financial services.
Educational Initiatives:
The foundation delivers diverse training programs designed to strengthen financial and entrepreneurial skills. Key programs include the Savings Game, the Micro Business Game, and the Farmer Business Game, which enhance participation and strengthen the learning experience by using interactive and gamified methods. Sparkassenstiftung also offers the following training modules aimed at professional life:
Networking E-Commerce Effective Communication Employability Business Plan Development Business and Commercial Law Cultural Sensitivity Market Research Marketing and Branding Risk and Crisis Management Social Entrepreneurship Basic Financial Literacy Product and Service Development Taxation and Accounting
These modules are delivered face-to-face, online, offline, and one-on-one, depending on the needs of the beneficiaries.
Collaborations and Outreach:
In collaboration with the related ministries and chambers, Sparkassenstiftung Türkiye has extended its impact by organizing training courses for both trainers, students in multiple schools, potential and existing businesses. This partnership supports the development of financial and business literacy, fostering a culture of informed financial decision-making.
Impact Assessments:
Field evaluations reveal that participants in Sparkassenstiftung Türkiye’s programs demonstrate significant improvements in financial management skills. This advancement leads to better financial decision-making, increased economic participation, and a stronger foundation for sustainable livelihoods.
As a global leader in financial inclusion, the German Sparkassenstiftung for International Cooperation sets the benchmark for adapting sustainable financial models to local contexts. With its leadership, Sparkassenstiftung Türkiye demonstrates how international expertise can drive inclusive economic development at the grassroots level.
Through a combination of strategic know-how and local engagement, German Sparkassenstiftung for International Cooperation enhances financial literacy and broadens access to essential financial services, empowering individuals and communities alike. Recognizing that financial and business literacy are foundational to sustainable inclusion, he German Sparkassenstiftung strengthens local economies and supports long-term development through its global practices.
