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November 2017

Financial inclusion measurement goes mobile

Leora Klapper's picture

This blog post was originally published on the Microfinance Gateway.

These are exciting times for those of us in the business of measuring financial inclusion. Technology is remaking the financial system every couple of years — and we're adapting the Global Findex survey questions accordingly. Our new data, which we're launching in April 2018, features bundles of new questions on financial services accessed through mobile phones and the internet.

We started collecting data for the first round of the World Bank's Global Findex database — measuring how adults in more than 140 countries worldwide save, borrow, and make payments — in 2010. Back then, our survey asked people about their use of paper checks.

Mobile money was so nascent that we had a few questions about mobile payments, but nothing about mobile money accounts. That came later, with the vastly expanded mobile money module in the 2014 Global Findex.

Hot off the press: The Global Financial Development Report 2017/2018: Bankers without Borders

Asli Demirgüç-Kunt's picture

GFDR 2018 cover image The decade before the 2007–09 global financial crisis was characterized by a significant increase in bank globalization, which also coincided with dramatic increases in bank size. International banks became the cornerstone of many financial systems around the world, also in developing countries. Proponents of international banking emphasized the potential gains in terms of much-needed capital, know-how, and technological improvements that foreign banks bring, leading to more competitive and diversified banking systems, improved resource allocation, and greater financial and economic development.

However, the global financial crisis has led to a significant re-evaluation of this conventional wisdom. With the crisis, there was a backlash against globalization in general, and the emphasis shifted to the role international banks can play in shock transmission. Developing countries felt the impact of retrenchment by global banks. Global banks were criticized for taking excessive risks. Financial Stability Board (FSB) and the G20 voiced concerns about how to deal with the resolution of too-big-to-fail banks. As a result, regulations and restrictions got stricter in many countries, particularly in developing countries, further contributing to the retrenchment kicked off by the crisis.

Global Financial Development Report 2017/2018: Bankers without Borders, the fourth in the series, brings to bear new evidence on the debate on the benefits and costs of international banks, particularly for developing countries. It provides figures on recent trends, emerging patterns since the global crisis, and evidence on the economic impact of international banking. The goal is to synthesize evidence and data to contribute to the policy debate on international banking.