How can we provide financially excluded individuals and small enterprises with the tools they need to withstand financial shocks and build wealth?

Challenge Overview

Over 1.8 billion adults are still unbanked or poorly served by existing financial products and services, leaving them unable to pursue economic opportunities, vulnerable to shocks, and at risk of permanent debt or even modern slavery. While the number of people with formal accounts has increased, with mobile phones as a key enabler, innovation is still needed to give underserved or excluded populations the ability to safely transfer and save funds, borrow money, and manage risks with insurance, both for individuals and for their micro, small, and medium enterprises (MSMEs).

The drivers of financial exclusion include lack of access to the internet and financial service agents, unclear explanations of product offerings, lack of formal ID, and discrimination, particularly against women, ethnic minorities, people of color, persons with disabilities, displaced communities, and low-income populations. Ensuring access to tools that allow everyone to take risks, plan for the future, and survive upheavals will require tailored solutions that provide equitable access to affordable financial services. Technology and innovation can help with both increasing access to appropriate services as well as creating products, such as loans secured by digital collateral or weather-indexed microinsurance, that meet the financial needs of the unbanked and underbanked. 

The MIT Solve community is looking for eight technology-based solutions that will make transactions easier, protect against predatory debt, and increase the ability of individuals and MSMEs to take risks and build wealth. To that end, Solve seeks solutions that: 

• Make it easier and more affordable for individuals and MSMEs to make investments and transfer payments, across geographies and different types of platforms.

• Provide new ways to accurately assess credit-worthiness of MSMEs and individuals, including methods that reduce bias against borrowers who have traditionally lacked equitable access to credit.

• Create and/or reduce frictions to scale safe personal identification methods for individuals who have been kept out of the formal financial system due to a lack of formal identification.

• Help gather, synthesize, or use relevant data to inform the design of insurance products tailored to populations at greater risk of facing shocks such as climate disasters, health-related disruptions, or unstable markets.

Prizes

MIT Solve - Solver Award

All Solver teams selected for Solve’s Global Challenges and the Indigenous Communities Fellowship will receive a $10,000 grant funded by Solve.

The GSR Foundation Prize

GSR Foundation will award a prize to solutions that use innovative technology to address pressing issues in their communities and the world. Preference will be given to solutions that use blockchain to improve financial inclusion. The prize is funded by the GSR Foundation, an independent charity founded by GSR, a leading cryptocurrency trading firm. The Foundation seeks to advance education, promote equality of opportunity, and contribute to a sustainable world, emphasizing blockchain and innovative technology-powered solutions. Up to $200,000 will be awarded across several Solver teams from any of Solve's 2023 Global Challenges.

The AI for Humanity Prize

The AI for Humanity Prize is open to solutions leveraging data science, artificial intelligence, and/or machine learning to benefit humanity. The prize is made possible by The Patrick J. McGovern Foundation, a philanthropy committed to advancing AI and data solutions to create a thriving, equitable, and sustainable future for all. Up to $150,000 in funding will be awarded across several Solver teams from any of Solve’s 2023 Global Challenges.

The Experian Prize

The Experian Prize is open to solutions that drive financial inclusion. The prize is funded by Experian Services Corporation, which aims to improve financial health for all. Up to $50,000 will be awarded across up to two Solver teams from the Financial Inclusion Challenge.

Prince Albert II of Monaco Ocean Innovation Prize

The Prince Albert II of Monaco Ocean Innovation Prize is open to solutions supporting innovation for coasts, oceans, and the broader blue economy. The prize is funded by Prince Albert II of Monaco Foundation, which is committed to protecting and progressing planetary health. Up to $100,000 will be awarded across up to two Solver teams from any of Solve's 2023 Global Challenges.

The HP Prize for Accelerating Digital Equity

The HP Prize for Accelerating Digital Equity is open to solutions that advance digital inclusion in education, healthcare, and economic opportunity in communities across the U.S. and globally, with a focus on teams benefiting marginalized groups. This prize is funded by HP, which is a global technology leader that is innovating with purpose and intention to go beyond short-term impact to drive positive, lasting change. Up to $100,000 will be awarded across up to four Solver teams from any of Solve's 2023 Global Challenges and Solve's existing portfolio of Solver teams.

The Andan Prize for Innovation in Refugee Inclusion

The Andan Prize for Innovation in Refugee Inclusion is open to solutions that advance the economic, financial, and political inclusion of refugees. The prize is funded by Andan Foundation, a Swiss non-profit foundation dedicated to supporting solutions that promote refugee resilience, self-reliance, and integration. Up to $50,000 will be granted across up to two Solver teams from the 2023 Global Challenges and Solve's existing portfolio of Solver teams.

Semifinalists