Measuring Financial Inclusion : The Global Findex Database

Abstract

This paper provides the first analysis
 of the Global Financial Inclusion (Global Findex) Database,
 a new set of indicators that measure how adults in 148
 economies save, borrow, make payments, and manage risk. The
 data show that 50 percent of adults worldwide have an
 account at a formal financial institution, though account
 penetration varies widely across regions, income groups and
 individual characteristics. In addition, 22 percent of
 adults report having saved at a formal financial institution
 in the past 12 months, and 9 percent report having taken out
 a new loan from a bank, credit union or microfinance
 institution in the past year. Although half of adults around
 the world remain unbanked, at least 35 percent of them
 report barriers to account use that might be addressed by
 public policy. Among the most commonly reported barriers are
 high cost, physical distance, and lack of proper
 documentation, though there are significant differences
 across regions and individual characteristics.