Syndicate content

financial inclusion

Could the digital revolution get more women into work?

Leora Klapper's picture

The most recent International Women’s Day focused on accelerating gender parity, which makes it a perfect time to highlight the urgent need to boost women’s economic participation worldwide. One way of doing that is by tapping into the power of digital payments and digital financial services.

How digital financial services boost women’s economic opportunities

Leora Klapper's picture

Imagine having to skip work every month to travel to the city center just to pay your electricity bill or your child’s school fee? Would you not worry if your income relied on remittances and you were unable to pay rent because they were tied up in a network of agents? And wouldn't it frustrate you if you didn’t have a say in how your salary was spent or invested?

Having a bank account could help in all of these situations. Most of us probably have auto-pay set up so we don't need to worry about our monthly bill payments or money transfers. But the conveniences we take for granted are out of reach for the world's 1.1 billion women who lack an account. According to World Bank’s Global Findex database, men in developing countries are 9 percentage points more likely than women to own an account. The gap is largest in South Asia, where only 37 percent of women have an account compared with 55 percent of men.

Three years ago, 2.5b adults were unbanked, compared to 2b today

LTD Editors's picture
The Global Findex, launched last month, is a massive database that tracks account ownership and use, savings, borrowing, and payments around the world.  Jake Kendall, Deputy Director of Research and Innovation on the Financial Services for the Poor team at the Bill & Melinda Gates Foundation, and World Bank Lead Economist Leora Klapper, recently wrote a blog post highlighting key facts and figures, some of which are: 
  • Sixty-two percent of the world’s adult population has an account, up from 51 percent in 2011
  • In developing economies, account ownership rose disproportionately among adults living in the poorest 40 percent of households.
  • Worldwide, account penetration among women rose from 47 percent in 2011 to 58 percent in 2014

Read the full blog post here.

Reflections on social protection and poverty alleviation from the long term impact of Chile Solidario

Emanuela Galasso's picture
Productive inclusion is the buzzword taking shape in social policy circles in Latin America, and other middle income countries. Graduation out of social assistance does not equate with (or presume) a sustained exit from poverty.

As many middle-income countries are moving towards embracing cash transfers with or without co-responsibilities attached (and the recent hype of handing cash directly to the poor), there is an important wave of programs that provide “cash plus” intervention.

Jarring Numbers on Financial Inclusion Point to Opportunities for Digitizing Payments

Leora Klapper's picture

In updating the Findex database on financial inclusion over the 2014 calendar year, I had the pleasure of traveling with Gallup, Inc., to pilot our expanded questionnaire. We visited people’s homes and asked them to describe to us how they save, borrow, make payments, and manage their risk.
 
A man who lives in a small home in a Kolkata slum with his wife, children, and parents works as a driver, and is paid directly to a bank account that was opened for him by his employer. With great pride, he told us that every month he leaves a balance in his account, which he believes is a safe place to save for his children’s education.

The Promise of Financial Inclusion

Mahmoud Mohieldin's picture

The following post first appeared on the Huffington Post.

Half the world's adults, approximately 2.5 billion individuals, do not have an account with a formal financial institution. Lack of access to finance is disproportionately skewed towards the poor, women, youth, and rural residents. Defined as the proportion of individuals and firms that use financial services, financial inclusion is increasingly seen as critical for ending extreme poverty and supporting inclusive and sustainable development. It provides people with the tools to invest in themselves by saving for retirement, investing in education, capitalizing on business opportunities, and confronting shocks (Global Financial Development Report, 2014). According to the World Bank Group's newly launched Global Financial Development Report 2014 on Financial Inclusion, most of the unbanked cite barriers such as cost, lack of documentation, distance, lack of trust, or religious reasons.

Financial Inclusion and the Role of the Post Office

Leora Klapper's picture

Financial inclusion is a topic of increasing interest on the international policy agenda. Last week the Universal Postal Union (UPU) hosted the 2013 Global Forum on Financial Inclusion for Development. With over a billion people using the postal sector for savings and deposit accounts and a widespread presence in rural and poor areas, post offices (or “posts”) can play a leading role in advancing financial inclusion. In Brazil more than 10 million bank accounts were opened between 2002 and 2011 after the post established Banco Postal in partnership with an existing financial institution. However, leveraging the large physical network of the post is not without challenges. Posts generally have little or no expertise in running a bank and the business model that a government pursues in providing financial services through the postal network may be critical to its success.

Pages