Day 1 s3 n3 abel finscope
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This document summarizes findings from FinScope consumer surveys across multiple countries in the Southern African Development Community (SADC) region regarding financial inclusion trends. The key findings are: 1) Financial inclusion, measured by access to banking and other formal financial services, varies widely across the SADC region from over 80% in some countries to under 30% in others. 2) Exclusion from financial services is far more common for rural adults compared to urban adults across the countries surveyed. 3) Around 49% of adults in the SADC region save money, mainly informally, with rural adults tending to save more informally than urban adults. 4) Approximately 38% of adults borrow, but mainly through
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Day 1 s3 n3 abel finscope
- 1. Making financial markets work for the poor African Conference on Remittances and Postal Networks Cape Town, South Africa 4-5 March 2015
- 2. First cycle: • Pakistan • Ghana • Lesotho • Thailand • Myanmar • Mauritius Footprint of FinScope Surveys Currently underway: First cycle: • DRC • India • Nepal • Laos Repeat: • Mozambique • South Africa • Botswana Repeat cycle: • South Africa • Zambia • Tanzania • Botswana • Kenya • Uganda • Nigeria • Namibia • Rwanda • Tanzania • Malawi • Swaziland • Zimbabwe 2 • South Africa • Zambia • Malawi • Tanzania • Zimbabwe • Mozambique FinScope Consumer Surveys FinScope MSME Surveys
- 3. 12 14 14 27 30 38 47 54 62 75 85 1 43 9 7 39 23 14 10 8 5 3 9 16 14 15 8 20 8 9 3 6 2 78 27 63 51 23 19 31 27 27 14 10 Mozambique 2009 Tanzania 2013 Zambia 2009 Malawi 2014 Zimbabwe 2014 Lesotho 2011 Botswana 2014 Swaziland 2014 Namibia 2011 South Africa 2014 Mauritius 2014 Banked Other formal (non-bank) Informal only Excluded Financial inclusion:Access Strand across the region [%] Financial inclusion varies widely across the region 3
- 4. Financial inclusion: Exclusion is by far more important for rural adults 4 84 87 64 81 51 76 26 50 30 58 7 28 60 35 12 47 27 63 9 23 4 27 3 3 6 4 8 8 22 15 25 16 39 51 7 5 10 22 7 7 9 9 1 1 3 1 6 4 5 2 11 7 26 10 20 7 7 16 27 13 16 5 17 10 9 11 10 9 24 11 36 14 42 28 20 16 34 14 26 44 51 18 50 25 66 58 86 61 Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Mauritiu s2014 South Africa 2013 Namibia 2011 Botswa na2009 Lesotho 2011 Tanzani a2013 Swazila nd2011 Zimbab we2011 Malawi 2014 Zambia 2009 Mozam bique 2009 Banked Formal Informal Excluded
- 5. Financial inclusion:Saving Strand across the region [%] 49% of adults in the SADC region save with national/cultural particularities beyond country income differences Rural adults tend to save more but rather informally. 5 13 60 61 25 17 33 22 11 12 13 5 5 6 4 14 4 2 13 2 3 8 0 36 1 2 11 30 15 19 19 13 6 9 34 8 3 18 12 7 2 17 15 3 6 12 25 30 33 37 43 44 51 57 70 80 Tanzania 2013 Namibia 2011 Mauritius 2014 Swaziland 2011 Zimbabwe 2011 Lesotho 2011 Botswana 2009 Zambia 2009 Malawi 2014 South Africa 2013 Mozambique 2009 Banked Other formal Informal At home only Excluded
- 6. Financial inclusion:Credit Strand across the region [%] About 38% of adults in the SADC region borrow but mainly through informal sources especially in rural areas. 6 1 5 1 19 4 16 9 2 3 27 4 0 2 3 3 3 22 4 2 2 7 13 2 8 15 8 17 1 7 16 15 9 22 5 14 10 2 9 4 24 25 31 9 25 92 71 71 68 67 57 56 55 49 48 36 Mozambique 2009 Zambia 2009 Malawi 2014 Botswana 2009 Swaziland 2011 South Africa 2013 Namibia 2011 Tanzania 2013 Zimbabwe 2011 Mauritius 2014 Lesotho 2011 Banked Other formal (non-bank) Informal Friends/family only Not borrowing
- 7. Financial inclusion: Remittance Strand across the region [%] About 30% of adults in the SADC region send/receive money 7 15 18 20 23 32 36 40 41 54 57 85 82 80 77 68 64 60 59 46 43 Mozambique 2009 Zambia 2009 South Africa 2013 Malawi 2014 Botswana 2009 Swaziland 2011 Zimbabwe 2011 Namibia 2011 Tanzania 2013 Lesotho 2011 Remitting Not remitting
Editor's Notes
- The purpose of FinMark Trust is “Making financial markets work for the poor” across Africa. This is done by promoting and supporting financial inclusion; regional financial integration as well as institutional and organisational development, in order to increase access to financial services for the unserved and underserved in Africa. In order to achieve this, FinMark Trust commissions research to identify the systemic constraints that prevent financial markets from reaching out to these consumers and by advocating for change on the basis of research findings. As a research tool developed by FinMark Trust, FinScope SA is an annual representative study of the demand for, usage of and access to financial services in South Africa. The primary objective of the measurement is to measure and profile the levels of access to financial services by all adults in South Africa, across income ranges and other demographics, and making this information available for use by key stakeholders such as policy-makers, regulators, and financial service providers.
- Income: Income is probably one of the strongest determinants of (formal) financial inclusion, referring to income levels as well as source of income/regularity of income i.e. proportion of the adult population that receive salaries/wages. From a supply-side perspective, formal institutions are likely to target these individuals. From a demand-side perspective, those who receive salaries and wages are likely to need a formal product for the purpose of processing their salaries and wages. They are also more likely to reside in urban areas and have generally higher levels of education
- In every country except Malawi, rural adults are more financially exlcuded
- About 49% of adults in the SADC region save, including all forms of savings (around 47 million individuals). The proportion of people who save varies from 88% in Tanzania to 20% in Mozambique. For example, 88% of adults in Tanzania and 63% of adults in Zimbabwe save, both countries have been classified as low-income, whereas only 30% of adults in South Africa (=higher-middle income country) save.
- About 38% of adults in the SADC region borrow but mainly through informal sources.
- About 30% of adults in the SADC region send/receive money, including all forms of remittance (around 29 million individuals). The proportion of adults who send/receive money varies from 57% in Lesotho to 6% in Mauritius. Urban tend to receive/send more than rural. Tanzania is of particular interest in that stance.