Following is a summary of a paper by Elisabeth Rhyne, Sonja E Kelly, published by the Center for Financial Inclusion (CFI), May 2018, 31 pages, available at: http://www.centerforfinancialinclusion.org/storage/documents/FI_Hype_vs_Reality_Deconstructing_2017_Findex_Results.pdf.
The authors of this paper reviewed data from the World Bank’s annual Global Findex survey, which includes data from 150,000 individuals in 140 economies in its 2017 iteration. The goal of the study is to gauge “how adults save, borrow, make payments, and manage risk” across the globe. The authors conclude the following:
1. Accounts: Since the first Findex in 2011, bank-account ownership across the globe has increased from 42 percent to 63 percent. However, the rate of new account openings has slowed since 2014, and the number of accounts that have been dormant for a year or more has grown by 50 percent. This disparity between usage and access continues to grow.
2. Payments: Digital payments are up 40 percent since 2014 in both developed and developing countries. As of 2017, 44 percent of adults in developing countries have engaged in some form of electronic payment, up from 32 percent in 2014. The use of such services is expected to continue growing as more individuals obtain access to mobile phones, the internet and card-based payment methods.
3. Credit: Borrowing has been relatively steady since 2011, with about 10 percent of adults borrowing from a financial institution each year. However, more people have been borrowing in several African countries where the number of mobile-money accounts has risen. For example, borrowing in Zambia increased by 67 percent between 2014 and 2017.
4. Savings: Since 2014, the percentage of adult savers in developing countries has declined. In China, for example, the percentage of people saving in a financial institution fell from 41 percent to 35 percent. As of 2017, one in five respondents worldwide save for old age.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
CFI homepage
http://www.centerforfinancialinclusion.org
Global Findex homepage
https://globalfindex.worldbank.org
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