New Policy Brief: Public Development Banks Driving Rural Financial Inclusion
The Agri-PDB Platform has released a new policy brief examining the barriers that continue to limit rural financial inclusion and the role Public Development Banks can play in expanding access to finance for rural populations.
Financial inclusion has advanced considerably worldwide, supported in part by the rapid expansion of digital financial services. Yet important divides remain. In 2024, 79% of adults globally owned a formal account, while the figure for rural adults stood at 71%. An estimated 1.3 billion adults remain unbanked.
The new policy brief, Public Development Banks Driving Rural Financial Inclusion, examines why these gaps persist and how Agricultural Public Development Banks are responding.
The analysis identifies a combination of structural barriers affecting rural financial markets, including the perceived high risk and low profitability of agricultural lending, information asymmetries, high transaction costs, limited connectivity and digital capabilities, and policy interventions that can distort credit allocation.
At the same time, the brief shows how the institutional characteristics of PDBs including their public mandate, long-term financing capacity, territorial presence and ability to combine financial and non-financial support can help address these constraints. It highlights instruments such as concessional and blended finance, guarantees, agricultural insurance, digital finance, alternative credit-scoring approaches, technical assistance and value-chain finance.
Practical examples featured in the publication illustrate how institutions in Brazil, Colombia, Bangladesh, Kenya, India, Indonesia, Guatemala, Mexico, Peru and the Philippines are applying these approaches to expand rural access to finance.
The policy brief concludes with five areas for action: strengthening the foundations of rural financial ecosystems; mobilizing greater investment through risk-sharing approaches; expanding capacity-building and partnerships; strengthening institutional innovation and adaptive capacity; and reinforcing governance and operational effectiveness.
The publication also reflects lessons emerging from the Agri-PDB Platform’s Rural Financial Inclusion Working Group, which facilitates peer-to-peer exchange among PDBs on practical solutions, including agricultural insurance, credit guarantees, fintech and risk-management tools.
Publication: Public Development Banks Driving Rural Financial Inclusion
Agri-PDB Platform | September 2026
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