Overview of Financial Inclusion Data...

Overview of Financial Inclusion Data Initiatives

BNM-AFI FINANCIAL INCLUSION STRATEGY & DATA PROGRAMME 25-28 November, Sasana Kijang, Malaysia 1

Alex Ochan-FIDWG

Introduction

Demand side initiatives

Supply side Initiatives

Other Initiatives

Conclusion


Session Outline


Introduction

Importance of Data to Policy Making

Diagnose the state of financial inclusion

Design appropriate strategies/

policies

Track changes over time

Evaluate Impact of Policy

> International, regional and national

organizations/governments playing vital role in data

collections efforts

> Both demand and supply side data being collected

> Objective/purpose of the data differs depending on the

interest of the organization/government

> Data becoming more complicated and richer with

innovations in financial services

Introduction

FI Data Efforts


Demand Side Initiatives

FI Data Efforts


Other national surveys

Global Findex

FinScope/FinAccess Surveys

Financial Inclusion Insight Survey

Financial Inclusion Tracker Survey MIX Market-FINclusion

AFI Core Set of Indicators

IMF Financial Access Survey

Demand Side Supply Side

FSP maps

Other national initiatives

> Measures how adults save, borrow, make payments &

manage risks

> Initiated in 2011 in 148 countries & funded by BMGF

> Samples at least 1000 individuals aged >15 years from

each country

> Collects data on socio demographic and access to or usage

indicators collected

> Main source of data globally for financial

inclusion/exclusion


Global Findex


Results of the second Global Findex expected in 2015


Global Findex


Useful for global analysis and cross

country comparison of financial inclusion

indicators

i)Sample not representative at sub-

national/regional level

(ii) Conceptual definition of formal

financial services is based on respondents

perception


Global Findex


> FinScope originated in 2002 and trademarked by FinMark

Trust

> Nationally representative surveys of individuals & SMEs


Finscope/FinAccess


Measure how individuals source

their income and how they

manage their financial lives in a

particular country

Measures how small business

owners source their income

and how they manage their

financial lives

FinScope Surveys

SMEs Consumer

> FinAccess and Access to Financial Services mirror FinScope

surveys but not conducted by FinMark Trust.

> Conducted in two countries-Kenya & Nigeria


Finscope/FinAccess


FinScope Consumer(17 countries) FinScope SME

FinAccess/Access to Fin

Services

SADC Other Africa Asia

1.Botswana 1.Ghana 1.Pakistan 1.South Africa 1.Kenya

2.Mauritius 2.Rwanda 2.Myanmar 2.Zimbabwe 2.Nigeria

3.Lesotho 3.Uganda 3.Thailand 3.Malawi

4.South Africa 4.Laos 4.Zambia

5.Zambia 5.Mozambique

6.Zimbabwe 6.Tanzania

7.Swaziland

8.Namibia

9.Tanzania

10.Malawi

11.Mozambique


Finscope/FinAccess


-Not comparable

across countries

-Surveys

conducted by

different

entities-data

quality concerns

-Provides insights

at different

administrative

level-useful for

policy

-Survey results

meet different

stakeholder

needs


FinScope Data Source


> Nationally representative surveys of individuals funded by

BMGF and conducted by Intermedia


FI Tracker/FI Insight


-Panel surveys

-Purpose is to estimate trends

in poverty levels of mobile

money users

-Non panel surveys

-Purpose is to gain insights on

individual perception and

behavior with respect to

digital financial services

FI Insight FI Tracker

Uganda,

Tanzani

Pakistan

Uganda, Tanzania , Kenya,

Nigeria, India, Pakistan,

Bangladesh and Indonesia


Data Source


FIDWG Background

Supply Side Initiatives

AFI Core Set of Indicators


2009: Idea of AFI data working

group proposed at 1st GPF, Kenya

2010:1st FIDWG meeting, Malaysia

FIDWG launched

13 founding members

2010: 2nd FIDWG meeting, Indonesia

Mexico elected as chair

2011:3rd FIDWG meeting, Peru

15 Members

2011:4th FIDWG meeting, Mexico

Brazil elected as chair

2012:5th FIDWG meeting, Zambia

20++ members

6th FIDWG meeting, SA

20++ members

2014:10th FIDWG meeting,

Trinidad & Tobago

39++ members

2014:9th FIDWG meeting, Morocco

2013:8th FIDWG meeting, Malaysia

2013:7th FIDWG meeting, Philippines

Objectives

-Develop a common

framework among AFI

members for

measuring financial

inclusion

-Promote the adoption of the framework in a

broader international context

-Share lessons learned on target

setting, survey methodology, analysis

and usage of data to inform

policymaking

Measurement Framework


AFI Core Set


Com

ple

xit

y

Resources

Welfare

Quality

Usage

Access

Core Set Principles

- Usefulness & relevance

- Pragmatism or

practicality

- Consistency

- Flexibility

- Balance

- Aspiration


AFI Core Set


Indicator Notes

1 Number of access points per 10,000 adults (national level and per

administrative unit)

By type AP; By tier

AU

2.1 % of administrative units with at least one access point Supply side

2.2 % of total population living in an administrative unit with at least one

access point

Supply side

3.1 % of adults with at least one type of regulated deposit account Demand side

3.a Number of deposit accounts per 10,000 adults Proxy

3.2 % of adults with at least one type of regulated credit account Demand side

3.b Number of credit accounts per 10,000 adults Proxy

Access (1 & 2) Usage (3)


AFI Core Set


Strengths

- Easy to compile

- Comparable

across countries

- Used to monitor

progress-Maya

Declaration

- Requires minimal

resources

Weakness

- Does not address

constraints to

financial inclusion

> Global supply side data on financial inclusion

> Includes basic indicators of access(outreach of financial

services) and usage

> Mobile money indicators introduced in 2014


IMF FAS



Data Source


> MIX market is a data hub where MFIs & other institutions

share data

> Platform provides analysis on risks & opportunities in

markets where MFIs operate

> Focus expanded to geospatial mapping of financial

institutions access points beyond MFIs

> Data available for 11 African,3 latin American & Asian

countries


MIX Market



Data Source


> Similar to MIX market

> Relies on geo coordinates of financial services access

points

> Poverty layers incorporated

> Carried out in 5 countries so far(Bangladesh, Nigeria,

Uganda, Kenya & Tanzania)


FSP Maps



FSP Maps-Tanzania


Commercial Banks ATMs


FSP Maps-Tanzania


Mobile Money Agents Road Infrastructure


FSP Maps


Possible Use cases -Spatial analysis can help regulators and

government easily identify underserved

geographies and can shed a spotlight on the

scale of the inclusion problem

-GIS analysis can help inform the design of

incentive schemes or other valuable policy

tools to extend retail infrastructure into

underserved areas

-Assess the most effective channel for

delivering these payments to intended

beneficiaries

More information is available at www.fspmaps.org

http://www.fspmaps.org/

Other Initiatives

National Initiatives


Country Initiative Source/Output

Philippines Supply side data http://www.bsp.gov.ph/downloads/Publication

s/2013/Financial%20Inclusion.pdf

Mexico Supply/Demand side data http://www.cnbv.gob.mx/en/Inclusion/Paginas

/Reports.aspx

http://www.cnbv.gob.mx/en/Inclusion/Paginas

/Survey.aspx

Burundi Demand side data http://brb.bi/en/node/6832

Uganda Supply side https://www.bou.or.ug/opencms/bou/bou-

downloads/Financial_Inclusion/Report-on-the-

State-of-Financial-Inclusion-First-Edition-

March-2014.pdf

http://www.bsp.gov.ph/downloads/Publications/2013/Financial Inclusion.pdf

http://www.bsp.gov.ph/downloads/Publications/2013/Financial Inclusion.pdf

http://www.cnbv.gob.mx/en/Inclusion/Paginas/Reports.aspx

http://www.cnbv.gob.mx/en/Inclusion/Paginas/Reports.aspx

http://www.cnbv.gob.mx/en/Inclusion/Paginas/Survey.aspx

http://www.cnbv.gob.mx/en/Inclusion/Paginas/Survey.aspx

http://brb.bi/en/node/6832

https://www.bou.or.ug/opencms/bou/bou-downloads/Financial_Inclusion/Report-on-the-State-of-Financial-Inclusion-First-Edition-March-2014.pdf























> Various data initiatives available

> Need to clearly define relevant indicators needed from a

country’s perspective

> Demand side data provide better diagnosis of the status

of financial inclusion but costly to conduct

> Supply side data is easier to obtain but does not tell you

everything. Being near an access point is a first step

before someone can use the financial service

FI Data Initiatives

Conclusion


Thank you

Overview of Financial Inclusion Data...

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