Five Amazing Findings From World Bank Poll On Financial Incusion; Spoiler: 2B People Use Cash Only

Bloomberg Business published an article on Wednesday afternoon presenting five surprising conclusions drawn by the World Bank after conducting a survey on global financial inclusion. One of the most surprising findings for Americans is the fact that 2 billion adults in the world are “unbanked.”

Being unbanked means transactions are made only in cash: no credit cards, no ATMs, no checks and, of course, no access to mortgages. The Bloomberg note highlights five interesting facts from the World Bank / Gallup World Poll report:

1)   The Middle East had the largest percentage of unbanked people amongst all regions in the world. Just 14 percent of adults declared having bank accounts, versus 62 percent worldwide.

2)   According to the article, “India and China accounted for half the increase in the number of the world's ‘banked.’ But 43 percent of Indians who reported having accounts said they hadn't made a deposit or withdrawal in at least 12 months.”

3)   While 94 percent of US adults said they own a financial account, other countries (Sweden, Norway, Denmark, Finland and New Zealand) boast a 100 percent rate.

4)   “Sub-Saharan Africa is the only part of the world where many people have ‘mobile money’ accounts through their cell-phone companies but don't have ordinary bank accounts.”

5)   In developing countries, saving money “informally,” under the mattress, somewhere else at home, investing in real estate and livestock, buying jewelry… is a very common practice. 46 percent of savers declared not using banks to keep their reserves.

 

It is important to understand, the article says, “increasing financial inclusion is crucial.” They cite the World Bank report, which says: 

“Studies show that when people participate in the financial system, they are better able to start and expand businesses, invest in education, manage risk, and absorb financial shocks. Access to accounts and to savings and payment mechanisms increases savings, empowers women, and boosts productive investment and consumption. Access to credit also has positive effects on consumption—as well as on employment status and income and on some aspects of mental health and outlook.”

Posted In: NewsEmerging MarketsGlobalEcon #sEconomicsMarketsBloombergCashGallup World PollWorld Bank
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