Measuring Financial Inclusion - World...

Measuring Financial Inclusion:The Global Findex Data

Leora KlapperFinance and Private Sector Development Team

Development Research GroupWorld Bank

GLOBAL FINDEX Financial Inclusion data

Supply side surveys Demand side surveys

In depth data… but less coverage

• Various institution- specific administrative data

• LSMS financial modules• FinScope• EFiNA• Finclusion• WB Financial Literacy surveys• OECD SME Scorecard

Limited headline numbers… but broader coverage

• IMF IFS• GSMA• WB Global Payment Systems Survey

• Global Findex• WB Enterprise Surveys• Gallup World Poll, World Value Survey, etc.

In 2014, the World Bank -- with funding from the Bill & Melinda Gates Foundation and in partnership with

Gallup, Inc. – updated and expanded the Global Findex dataset, an unprecedented study of financial

inclusion based on interviews with almost 150,000 adults in over 140 countries worldwide.

Financial InclusionTotal Percentage of Adults

GLOBAL FINDEX Account ownership

Financial InclusionTotal Percentage of Adults, 2014

Note: Significant change in account ownership from 2011 to 2014 is shown in red above each bar.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China East Asia & Pacific (ex.

China)

India South Asia (ex. India)

Europe & Central Asia

High Income: OECD

Latin America & Caribbean

Middle East Sub-Saharan Africa

10 pp

18 pp 8 pp

4 pp

12 pp

10 pp

15 pp

Account at a financial

institution

Mobile Money account

62% of adults have an account as of 2014, up

from 51% in 2011


Financial Inclusion in Developing CountriesTotal Percentage of Adults, 2014

234 million adults in China remain unbanked and

71% of them live in rural areas

46%

60%

50%

59%

Poorest 40% of Households

Richest 60% of Households

Women

Men

The percent of unbanked adults in the poorest

40% of households dropped by 17 percentage

points – but more than half in developing

countries are still without accounts

In the Middle East older adults are twice as likely

as younger adults to have an account

In India, men are more than 20 percentage points

more likely than women to have an account


How Can Digital Payments Raise Income?Digital payments can facilitate wage, transfer and remittance payments and have the potential to increase income by allowing households to smooth consumption and accumulate savings

• Lower cost and time to send and receive payments

• Increased security of payments and lower associated crime

• More transparency and thus lower leakage between sender and receiver

• Builds transaction history and improves credit access

• Increasing the security, privacy and control over the funds received, especially for women

• Helps people meet unanticipated expenses • In Kenya, women who had savings accounts invested 45 percent more in

their businesses and were less likely to sell off assets when faced with a health emergency

GLOBAL FINDEX Digital payments

Digital paymentsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults with an account

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China East Asia & Pacific, excl.

China



Middle East India South Asia, excl. India

Sub-Saharan Africa

High Income: OECD

No digital payments from/to

the account

Digital payments from/to the

account

Digital PaymentsTotal Percentage of Adults

66

59

29

66

76

93

51

37

12

52

53

86

Brazil

China

India

Russian Federation

South Africa

HI-OECD

Poorest 40% of Households vs. Wealthiest 60% of Households

Note: Red bars show percentage of adults that use an account to make or receive a digital payment in the poorest 40% of households compared to the richest 60% of households, as measured by household income.

GLOBAL FINDEX Digital payments

GLOBAL FINDEX Debit Cards

Use of debit cards for direct paymentsTotal Percentage of Adults

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

World Developing economies

East Asia & Pacific


High-income OECD

economies


Middle East South Asia Sub-Saharan Africa

Used a debit card

Did not use a debit card14% of account holders in developing

economies use a debit card

Note: the height of the bar is the percentage of adults with an account at a financial institution

Did not have a debit card

0%

10%

20%

30%

40%

50%

60%

70%

80%

Turkey Brazil China India Russian Federation United States

GLOBAL FINDEX Use of Account

Modes of payments from accountsTotal Percentage of Adults

14% of adults in China report using a mobile phone to

access their account

Used a debit card for direct

payments

Used a credit card for direct

payments

Used a mobile phone to make

direct payments from an account

Nearly a quarter of adults in

Turkey report using a credit

card

GLOBAL FINDEX Internet

Internet paymentsTotal Percentage of Adults

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

World Developing economies

East Asia & Pacific


High-income OECD

economies



Note: the height of the bar is the percentage of adults with access to internet.

Make online payments

Have access to the internet at home (Don’t make

online payments)

In South Asia women are half as likely as mento have Internet access in their home

GLOBAL FINDEX Usage of Accounts

Wage Payments Total Percentage of Adults

Note: the height of the bar is the percentage of adults receiving wage payments.

0%

10%

20%

30%

40%

50%

60%

East Asia & Pacific


High-income OECD

economies



Developing economies

World

Into an account

60% of wage recipients in ECA

receive wages into an account

Only 19% of wage recipients

in South Asia receive wages

into an account

In cash onlyGlobally, paying wages through

accounts can increase the number of adults with an account by more

than 300 million


Government Transfer PaymentsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults receiving government transfer payments.

0%

10%

20%

30%

East Asia & Pacific


High-income OECD

economies



Developing economies

World

In cash only

Into an account

88% of transfer

recipients in Brazil receive transfers into

an account

Globally, government transfers through accounts can increase

the number of adults with an account by up to 130 million


Agriculture paymentsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults receiving agriculture payments

0%

10%

20%

30%

40%

East Asia & Pacific Europe & Central Asia


Middle East South Asia Sub-Saharan Africa Developing economies

440 million unbanked adults in developing countries receive agricultural payments in cash

In cash only

To an account


Agriculture paymentsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults receiving agriculture payments

0%

10%

20%

30%

40%

50%

60%

70%

80%

Kenya Tanzania Uganda

In cash only

To an account


School fee paymentsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults paying school fees.

0%

10%

20%

30%

40%

East Asia & Pacific Europe & Central Asia


Middle East South Asia Sub-Saharan Africa Developing economies

Over half a billion adults in developing countries

with an account pay school fees in cash—

over a billion adults with an account pay utility bills

in cash

In India, 230 million adults with an account

pay school fees or utilities in cash

In cash only

To an account

How Can Formal Savings, Credit & Insurance Raise Income?Formal savings products can increase income by allowing households to accumulate assets; Some evidence suggests that access to formal credit and insurance can increase income and/or smooth consumption for rural farmers

Savings

• Higher investments in business and agriculture

• Easier to cope with income shocks

• Increased women’s economic empowerment through greater confidentiality and control over savings

• Spending on education increased by 20% in Nepali households that opened free bank accounts

Credit

• Access to credit is associated with higher agricultural incomes and increase and/or smoother consumption for rural farming populations

• But ambiguous impact of credit on personal welfare like income and consumption

Insurance

• Agricultural insurance can encourage farmers to invest in riskier crops, often resulting in higher yields

GLOBAL FINDEX Savings

Savings behavior Total Percentage of Adults

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

High Income: OECD

China East Asia & Pacific (ex.

China)

India South Asia (ex. India)



Sub-Saharan Africa

Saved using an account

Saved using a community

savings group

Did not save

Saved in other ways

GLOBAL FINDEX Financial Resilience

Financial Resilience: Source of emergency fundsTotal Percentage of Adults

Note: the height of the bar is the percentage of adults that report being able to come up the equivalent of 1/20th of GNI in a month.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

World Developing East Asia & Pacific


High Income: OECD



1.2 billion adults in developing countries say they would use

savings in case of an emergency—but 56% of these adults do not save at a financial institution

Family & Friends

Savings

Credit/ Employer

GLOBAL FINDEX Knowledge gaps

• What country-level factors explain the wide variations in account ownership across emerging economies• Differences in the legal, regulatory, and tax environment {financial & telecom}

• Impact of reforms, such as new laws/regulations permitting agents, mobile money accounts, or tiered KYC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Acco

unt o

wner

ship

(%)

GDP per capita (constant 2005 US$)

Account Ownership and GDP Per Capita


• More opportunities to merge demand side data and geospatial data• Impact of introduction/expansion of National ID’s

• Impact of better product design to increase affordability, convenience, user take-up, etc.

Barriers to Account OwnershipTotal Percentage of Adults

0% 5% 10% 15% 20% 25% 30% 35%

Lack of trust

Lack of necessary documentation

Financial institutions too far away

Accounts too expensive

Family member already has an account

Do not need an account

Usage of AccountsTotal Percentage of Adults



• Sexdisaggregateddataonownershipanduseofaccounts,mobilephones,andinternet

• Impactoffinancialservicesonwomen’seconomicempowerment

Gender Gap in Access to Technology

GLOBAL FINDEX

Global Findex Suite of Products

• Findex Notes and Working Papers

• Financial Inclusion Data Portal• The Little Data Book on Financial Inclusion 2015

• Global Financial Inclusion Microdata

www.worldbank.org/globalfindex

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