Global Findex Database 2021

Tags: Economy/Finance

The World Bank recently released the “Global Findex Database 2021”.

• Major findings of the report

• Account ownership

• According to this report, account ownership has increased worldwide.

• Today three out of four adults have a financial account, according to this report. Yet 1.4 billion adults do not have a bank account.

• Account ownership has increased by 50% worldwide, with 76 percent of the adult population having access to accounts.

• Account ownership has increased widely in dozens of developing economies, and most new accounts have been opened in India and China.

• Access to Formal Banking

• The bulk of the global population (130 million and 230 million, respectively) without formal banking lives in India and China.

• Men in developing countries accounted for 74%, while women were six points behind, with 68% of the accounts.

• Unbanking

• Globally 24% of adults are unbanked, with one of various reasons being a lack of money, with distance being a barrier for 31% of unbanked adults.

• People who do not have an account with any financial institution or mobile money service provider are classified as unbanked.

• Globally, 64% of unbanked adults are educated at the primary level or below.

• 36% of unbanked adults worldwide say financial services are too expensive.

• Covid-19 and digital payments

• In 2021, 18% of adults in developing countries paid utility bills directly from the account. About one-third of these bills were paid online for the first time.

• Mobile money

• Mobile Money is supporting financial inclusion in sub-Saharan Africa, especially for women.

• There are 11 economies where adults have more mobile money accounts than financial institution accounts, all located in sub-Saharan Africa.