This report is a product of the financial access and inclusion team in the world bank groups finance, competitiveness and innovation global practice. The foundation for shared prosperity poses this question in the world bank s first comprehensive examination of social inclusion. This collection of resources from the world bank group, partner organizations, and financial sector authorities worldwide provides knowledge and tools for the development and implementation of national financial inclusion strategies nfis and similar instruments. Financial inclusion has moved up the global reform agenda and become a topic of great interest for policy makers, regulators, researchers, market practitioners, and other stakeholders. Financial inclusion can really pick up the financial conditions and standards of living of the disadvantaged groups. Role of banks in financial inclusion in india sciencedirect. Sri lanka global financial inclusion global findex. Financial inclusion is a byproduct of financial exclusion and is directly related to poverty.
The international finance corporation ifc is committed to helping create 600 million bank accounts in the developing world. G20 financial inclusion indicators overview the group of twenty g20 recognizes that financial inclusion is a key enabler in the fight against poverty. The book explains that inclusion also matters because it is the foundation for shared prosperity. The regular use of financial services, through payment infrastructures to manage cash flows. The database provides nationally representative, demandside data on access to and use of accounts, credit, payments, and savings by adults age 15 and above in 144 economies. For the world bank group, financial inclusion represents a core topic, given its implications for reducing poverty and boosting shared prosperity. Both banks and telecom operators struggle with public trust issues. With slowing global growth and increasing uncertainty clouding the global economic prospects,the europe and central asia region faces a more challenging context than previously envisioned. Its relevance has its actions the development of the financial inclusion national strategy aimed at involving the. Financial inclusion is one of the most important concepts that recently attracted the attention of international organizations and central banks in general. Financial inclusion, poverty, and income inequality in. G20 financial inclusion indicators pdf glossary pdf explore data dashboards.
Global financial development report 2014 world bank. The need for a clear definition of financial inclusion the bank of tanzania, the countrys central bank, has defined financial inclusion as. National financial inclusion strategy 2016 2022 01 introduction the need to expand the levels of population and companies access to formal financial services in mozambique has always been part of the governments economic policies. The world bank group plays a critical role in advancing financial inclusion in the world since it can leverage its financial sector expertise, country engagement and dialogue, financing and risksharing instruments, unique datasets and research capacity, and influence with standardsetting bodies and the g20. Financial inclusion is defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost rangarajan, 2008 in the report of the committee on financial inclusion in india.
Sep 20, 2016 at the imf, we see financial inclusion as a key pillar of economic development. The central bank of egypt cbe participated in several regional and global initiatives to improve. G20 financial inclusion indicators indonesia the world bank. In july 2017, egypt was chosen, along with china and mexico, as a model country in a new financial inclusion global initiative launched. Finance and private sector development team october 20. Contours of financial inclusion classification of financial exclusion according to the world bank, four forms of financial exclusion are prevalent in society. Mobile financial services and financial inclusion may 1617, 2011 the brookings institution 1775 massachusetts ave. The world bank group wbg, with private and public sector partners, set an ambitious target to achieve universal financial access ufa by 2020. Second, it uses the global financial inclusion indicators global findex database to characterize adults in africa that use formal and informal financial services and identify the barriers to formal account ownership. The world bank groups projected reach is based on engagement activities linked to project targets, constraints of unbanked adults and attribution of financial inclusion strategies.
Official pdf, 40 pages world bank documents world bank group. The financial development data tables 20172018 is a concise edition of the global financial development database published as part of the work on the global financial development report 20172018. Financial exclusion refers to the lack of banking and financial services to the poor. Financial inclusion in asia asian development bank. It is the protection of a fundamental human right, the right to dignity and a decent life. Jun 18, 2018 in ethiopia, women account for a disproportionate share of the unbanked, and the gap is widening. G20 financial inclusion indicators overview world bank. Islamic finance and financial inclusion world bank. First, it provides a brief overview of the african financial sector landscape. Other colleagues, including wei zhang, djauhari sitorus, ashraf bin arshad, mohamed rozani. The data represent a third round of data collection since the global findex database was launched in 2011.
Financial inclusion increases resilience to economic shocks and helps grow small and mediumsized enterprises. Financial inclusion an overview sciencedirect topics. Binyam teshome world bank the world bank group wbg, with private and public sector partners, set an ambitious target to achieve universal financial access ufa by 2020. Malaysia has achieved one of the highest levels of financial inclusion among southeast asia countries, due in part to policies taking advantage of mobile phones and banking agents to expand access. I hope governments, businesses, and development champions will continue. Financial inclusion, defined as the proportion of individuals and firms that use financial services, has become a subject of considerable interest among policy makers, researchers, and other stakeholders. Financial inclusion open knowledge repository world bank group. Access dashboards showing data indicators disaggregated by country. Financial inclusion global financial development repor t financial inclusion 2014 financial inclusion global financial development repo r t 2014 global financial development report 2014 is the second in a new world bank series. It continues the little data book on financial development series, and includes select measures of. The fact that the financial sector and telecom operators can make a difference is important for the whole industry. The 2017 global ficp survey covers key topics related to the enabling environment for financial inclusion and financial consumer protection, including national financial inclusion strategies, the issuance of emoney by nonbanks, agentbased delivery models, simplified customer due diligence, institutional arrangements for financial consumer.
P, sikkim, and haryana identified as a group of medium financial inclusion 0. Global financial inclusion global findex database world bank. Cgap world bank shall not be liable for any content or. Financial inclusion in india an assessment1 overcoming poverty is not a gesture of charity. Growth in the emerging markets and developing economies in the.
In addition to being widely cited by scholars and development practitioners, global findex data are used to track progress toward the world bank goal of universal financial access by 2020 and the united nations sustainable development goals. Between 2014 and 2017, the share of adults who have an account with a financial institution or through a mobile money service rose globally from 62 percent to 69 percent. Opportunities for expanding financial inclusion among the unbanked 64. This paper provides the first analysis of the global financial inclusion global findex database, a new set of indicators that measure how adults in 148 economies save, borrow, make payments, and manage risk. The foundations of financial inclusion world bank documents. The ufa goal envisions that, by 2020, adults globally will be able to have access to a transaction account or electronic instrument to store money, send and receive payments. Translationsif you create a translation of this work, add the following disclaimer along with the attribution. This translation was not created by cgap world bank and should not be considered an official translation. The team was led by oya ardic and ivor istuk and included helen gradstein and loretta michaels. We use the world bank s global findex database on 37 african countries to perform probit estimations. G20 financial inclusion indicators indonesia world bank. The little data book on financial inclusion 2018 world bank. The 2017 global ficp survey covers key topics related to the enabling environment for financial inclusion and financial consumer protection, including national financial inclusion strategies, the issuance of emoney by nonbanks, agentbased delivery models.
Sierra leone economic update june 2019 world bank documents. The global findex database is the worlds most comprehensive data set on how adults save. The world bank group plays a critical role in advancing financial inclusion in the world since it can leverage its financial sector expertise, country engagement and dialogue, financing and risksharing instruments, unique datasets and research capacity. Download the little data book on financial inclusion. Financial inclusion for economic growth and development. Maharashtra and karnataka has achieved high financial inclusion ifi 0. The pursuit of inclusive development is leading to a greater focus on financial inclusion policies and initiatives. World development indicators wdi is the primary world bank collection of development indicators, compiled from officially recognized international sources. Most people would agree that inclusion matters simply from a moral standpoint. It presents the most current and accurate global development data available, and includes national, regional and global estimates. Contributing to financial inclusion is one way of showing that these sectors play a key. Why mobile money is key to financial inclusion world. Measuring financial inclusion and the fintech revolution.
Measuring financial inclusion and the fintech revolution presents key findings from the global findex database, with detailed insight into how adults in more than 140 economies access. This paper summarizes financial inclusion across africa. The central bank of egypt cbe participated in several regional and global initiatives to improve financial inclusion in egypt. Reliable data covering the major components of sustainable financial inclusion. Financial inclusion, poverty, and income inequality in developing asia the authors present a broadbased financial inclusion indicator to assess various macroeconomic and countryspecific factors affecting the degree of financial inclusion for 37 selected developing asian economies. Pdf the determinants of financial inclusion in africa. Jeffrey allen conducted the research and contributed significantly to the drafting.
Global findex world bank documents world bank group. Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs transactions, payments, savings, credit and insurance delivered in a responsible and sustainable way. This paper provides the first analysis of the global financial inclusion global findex database, a new set of indicators that measure how adults in 148 economies. Cgapworld bank shall not be liable for any content or. The global findex database has become a mainstay of global efforts to promote financial inclusion. Access the g20 financial inclusion indicators database download countrylevel data powered by the world bank. Global financial development report 2014 the world bank. Correspondent banking and financial inclusion in brazil. The little data book on financial inclusion 2018 the data represent a third round of data collection since the global findex database was launched in 2011. We will continue to expand our knowledge of the issues, and develop and share best practices with our membership. Mobile financial services and financial inclusion iii in initial private meetings to launch the two day event, panelists voiced their interest and aspiration for mfs in africa.
Together with the world bank and other regional institutions, we have worked with many african countries on reforms that can support greater inclusion. The objective of this paper is to examine the determinants of financial inclusion in africa. Actual reported reach is used to update projections as that data become available. This translation was not created by cgapworld bank and should not be considered an official translation.
Innovation in financial inclusion 6 bank account penetration current state cvg current state potential banking revenues calculated on additional loans and increased consumption of financial services bank account penetration target state cvg target state 65% 74% apac pers anking e analysis c c p xpect at evenue or 3 espectively. Measuring financial inclusion and the fintech revolution presents key findings from the global findex database, with detailed insight into how adults in more than 140 economies access accounts, make payments, save, borrow, and manage risk. Global standardsetting bodies and financial inclusion the evolving landscape gpfi 2016 in the financial inclusion context, crowdfunding refers to a marketbased financing technique where funds are raised from large numbers of individuals or legal entities in small amounts, bypassing traditional financial intermediaries, and us. Measuring use of and demand for formal financial services among muslim adults. Financial development data tables 20172018 world bank. The little data book on financial inclusion 2018 is a pocket edition of the global findex database published in 2018. At the imf, we see financial inclusion as a key pillar of economic development. At the 2014 apec financial inclusion forum, adbi and afdc agreed to publish a joint report summarizing the achievements and challenges of. Various countries are promoting financial inclusion across the world. Similarly, egypt has put financial inclusion as a priority during the last years. Financial inclusion is a key enabler to reducing poverty and boosting prosperity. Clarify the world bank groups approach on financial inclusion by making it evidencebased and comprehensive, focused on enabling access to a range of financial services with benefits for the poor in a sustainable manner and specifying when and how to use subsidies. Technical note financial inclusion beyond payments world bank.
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