## mfaea

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---

### Executive Summary — Overview and Key Findings
- Marks the 10th anniversary of the IMF Financial Access Survey (FAS); launched in 2009 at the IMF–World Bank Annual Meetings in Istanbul.
- The FAS is a supply-side database providing annual, near-global data on access to and use of financial services, sourced directly from financial service providers and administrative data collected by central banks and financial regulators.
- Financial access is advancing globally but at different speeds across economies.
- Modes of access shifting:
  - In high-income countries, bank branches are declining while internet banking is gaining ground.
  - Agent banking has gained popularity in Asia and Latin America.
  - Mobile money has changed access in Africa and other regions.
- Deposit takers other than commercial banks (for example, microfinance institutions or savings banks) play an important role in some economies; commercial banks remain the main player in many economies.
- Persistent access and use gaps for women and small and medium-sized enterprises (SMEs).

### FAS Data Features, Coverage, and Evolution
- Supply-side annual dataset with country time series and indicators on deposit accounts, loans, insurance policies, branchless banking, and mobile money.
- Coverage and scope:
  - Covers 189 jurisdictions, including 40 fragile states.
  - Contains 121 different series spanning 15 years (2004–18).
  - Provides 64 indicators normalized to adult population, land area, and GDP.
- Evolution timeline highlights:
  - 2009: FAS launched.
  - 2012: Breakdown of institutions introduced.
  - 2014: Mobile money module started.
  - 2016 & 2017: Gender pilot launched.
  - 2018: Gender statistics mainstreamed; series for debit cards, credit cards, and non-branch retail agents introduced.
  - 2019: Mobile and internet banking added; gender statistics expanded.
- Gender data:
  - Gender-disaggregated data included in the main survey since 2018.
  - As of 2019, gender data are available for 49 countries, with close to half of gender reporters being low- and lower middle-income countries, including 11 fragile states.
- Reporting status (2019 round):
  - Average number of reported series: 65 (out of 121).
  - Average number of reported indicators: 32 (out of 64).
  - Number of indicators reported by countries ranges between 7 and 64.
  - 171 countries reported in 2019 compared to 168 in 2018.

### Changes in Access Infrastructure: ATMs, Branches, Agents, and Mobile Money
- Global trends (2014–2018):
  - The number of commercial bank branches per 100,000 adults aggregated for the whole world has remained stagnant for the past five years.
  - World growth of ATMs per 100,000 adults in 2018 was less than 1 percent.
  - Low-income and lower middle-income countries: ATMs and branches increased between 2014 and 2018.
  - Upper middle-income: ATMs increased in the last five years; bank branches have slightly decreased.
  - High-income: Both ATMs and bank branches indicators have declined over the last five years.
- Relationship between ATMs and mobile money agents:
  - Inverse relationship: shallower banking systems (fewer ATMs) tend to have greater mobile money agent density.
  - Mobile money agents are more prevalent in sub-Saharan Africa and South Asia.
- Mobile money growth — selected statistics:
  - M-Pesa launched in March 2007 in Kenya and now has nearly 32 million users in 10 countries.
  - Ghana: value of mobile money transactions increased from 8 percent of GDP in 2014 to 74 percent of GDP in 2018.
  - South Asia: average annual growth rate of 52 percent in the number of mobile money transactions per 1,000 adults over the past five years — the highest across all regions.
  - Among more than 90 countries where mobile money services are available, 73 report mobile money data to the FAS.
- Fragile states:
  - More than 20 fragile states have mobile money services.
  - On average in fragile states, for every commercial bank branch, there are close to 47 mobile money agents.
  - Between 2015 and 2017 in fragile states:
    - Number of commercial bank branches per square kilometer remained fewer than two.
    - Number of mobile money agents per square kilometer increased from 18 to 27, a 50 percent increase.
    - By comparison, the number of mobile money agents grew by 16 percent in non-fragile states.
  - Ratio of Mobile Money Agents to Commercial Bank Branches (select fragile states):
    - Guinea 174
    - Papua New Guinea 131 (data for Papua New Guinea is from 2015)
    - Zimbabwe 116
    - Mali 95
    - Guinea Bissau 64
    - Togo 59

### Outstanding Household Deposits, Microfinance, and Women’s Access
- Women’s borrowing:
  - In several low- and middle-income countries, less than 30 percent of borrowers at commercial banks are women (examples: Pakistan, South Sudan, Uganda).
  - In high-income European countries such as Denmark and Poland, the share of women borrowers at commercial banks is close to 50 percent.
- Role of microfinance institutions (MFIs):
  - Bangladesh: 10 percent of borrowers at commercial banks are women; 91 percent of borrowers at deposit-taking microfinance institutions are women.
  - Bangladesh: outstanding deposits and loans from deposit-taking microfinance institutions have grown at an average annual rate of 20 percent during the last five years.
  - Myanmar and Pakistan: more than 70 percent of the value of the loans extended by non-deposit-taking microfinance institutions are to women.
- Risks and policy implications:
  - High credit growth in microfinance can entail credit risk; the microfinance crisis in the Indian state of Andhra Pradesh cited as an example, underscoring the need for supervision and regulation.

### SMEs: Access, Economic Importance, and Empirical Evidence
- Economic importance:
  - SMEs contribute up to 45 percent of employment and 33 percent of GDP in developing countries.
- Bank lending to SMEs:
  - Remained stagnant in low- and middle-income countries at about 6 percent of GDP over the past five years.
- Country policy examples supporting SME lending:
  - Fiji: SME Credit Guarantee Scheme Guidelines—Fijian government guaranteed 50 percent of the principal of outstanding SME loans.
  - Georgia: 2016–20 SME Development Strategy.
  - Mongolia: USAID credit guarantees of up to 60 percent of SME loan amounts (Reach Project).
- Empirical evidence (GMM panel regression, 2004–18; regressor: loans to SMEs in logs; dependent variable: GDP per capita in logs):
  - Sample sizes: 40 observations for upper middle-income countries, 52 for lower middle-income countries, and 50 for low-income countries.
  - Low-income group loans to SMEs:
    - Coefficient: 0.26
    - Standard Error: 0.07
    - R2: 0.83
    - t-Statistic: 3.82
    - Probability: 0.00
  - Lower middle-income group loans to SMEs:
    - Coefficient: 0.51
    - Standard Error: 0.18
    - R2: 0.96
    - t-Statistic: 2.80
    - Probability: 0.01
  - Upper middle-income group loans to SMEs:
    - Coefficient: 0.21
    - Standard Error: 0.09
    - R2: 0.64
    - t-Statistic: 2.38
    - Probability: 0.02
  - Interpretation: increased financial access to SMEs is positively correlated with GDP per capita, with differentiated impacts across income groups.

### Reporting Detail Highlights (selected FAS reporting themes)
- Granular data on financial service providers (FSPs): depositors, borrowers, deposit accounts, loan accounts, outstanding loans and deposits disaggregated by FSP type.
- Insurance corporations: number of policy holders and number of insurance policies for life and non-life insurance — close to 160 countries report these data.
- Branchless banking: retail agent outlets, debit cards, credit cards, mobile and internet banking — more than 100 countries report debit and credit cards; fewer countries report non-branch retail agents.
- Mobile money: seven series covering availability, adoption, and usage.
- SMEs: SME usage indicators available; SME data reporting by low-income countries is relatively limited; breakdown available for roughly 60 middle-income countries.
- Reporting detail examples as presented in the source:
  - "Mobile money1851473"
  - "Gender 5341049"
  - "Insurance188752157"
  - "Small and medium-sized enterprises 186125104"
  - "Credit unions and credit cooperatives 14462686"
  - "Microfinance institutions Non-deposit-taking1049968 Deposit-taking2238565"
  - "Branchless banking Non-branch retail agents426737 Mobile and internet banking3422368 Debit cards86540113 Credit cards76244113"

### Policy Implications, Data Gaps, and Recommendations
- Data and capacity:
  - Close FAS data collection gaps, including in advanced economies.
  - Support country statistical capacity through regional workshops (IMF organized workshops starting 2018; next workshop planned for Middle East and Central Asia region in 2020).
  - Designate a subset of FAS indicators as "basic indicators" for countries with limited statistical capacity.
- Enhanced indicators and fintech data:
  - Consider new indicators using existing series (for example, value of mobile money transaction per account).
  - Collect more granular fintech data: number of fintech firms, number of loans conducted through fintech, reduced transaction costs.
  - Collect systematic information on costs and barriers to financial access (fees, interest charges, minimum balance requirements) and on national financial inclusion policies.
  - Capture peer-to-peer lending and inclusive informal access to finance.
- Balance enhancements with capacity constraints:
  - Explore innovative, efficient data-collection methods (publicly available data, big data partnerships with financial service providers or BigTech companies).
- Policy priorities beyond data:
  - Monitor and address consumer protection considerations as digital and non-traditional providers expand.
  - Address financial stability considerations associated with digital and non-traditional providers.
  - Enhance regulation where rapid mobile money growth exposes depositors to default and liquidity risks.
- Knowledge sharing:
  - Catalog policy initiatives including objectives of national financial inclusion strategies and measures related to women’s financial inclusion, SMEs, consumer protection, and financial literacy.

*Source: mfaea — Measuring Financial Access—10 Years of the IMF Financial Access Survey (Executive Summary, Introduction, Sections 1–2, and References).*

### Executive Summary ������������������������������������������������������������������������������������������������������

### Executive Summary

### Overview
- Marks the 10th anniversary of the IMF Financial Access Survey (FAS).
- The FAS is a supply-side database providing annual, near-global data on access to and use of financial services, sourced directly from financial service providers and administrative data collected by central banks and financial regulators.
- Launched in 2009 at the IMF–World Bank Annual Meetings in Istanbul to support evidence-based policymaking and to meet demand for granular financial inclusion data.
- The FAS has evolved to keep pace with financial innovation and changing data needs.

### Key Findings
- FAS indicators suggest that financial access is advancing globally but at different speeds across economies.
- Modes of access to finance are shifting beyond traditional bank branches:
  - In high-income countries, bank branches are declining while internet banking is gaining ground.
  - Agent banking (retail agent outlets such as small retailers acting on behalf of banks) has gained popularity in Asia and Latin America.
  - Mobile money has changed the way people access finance in Africa and other parts of the world.
- Deposit takers other than commercial banks (e.g., microfinance institutions or savings banks) play an important role in providing financial services in some economies, while commercial banks remain the main player in many economies.
- Financial access and use gaps persist for some population segments, including women and small and medium-sized enterprises (SMEs).

### Data Features and Coverage
- Supply-side database with annual global coverage based on data sourced directly from financial service providers.
- Contains country time series and indicators tracking availability and use of financial products such as deposit accounts, loans, and insurance policies.
- The FAS has kept pace with emerging data needs, including:
  - Rise of mobile money.
  - Growing demand for gender-disaggregated data.
- Goals include encouraging countries to strengthen FAS data reporting and to enhance fintech data collection.

### Recent Trends Illustrated by FAS Data
- Changing modes of access: decline in traditional bank branches in some economies; rise in internet banking use.
- Expansion of agent banking networks in Asia and Latin America.
- Rapid adoption and impact of mobile money in parts of Africa and elsewhere.
- The granularity of FAS data enables analysis of the roles of different types of deposit takers and heterogeneous country experiences.

### Inclusion Gaps and Vulnerable Segments
- Persistent gaps in financial access and use for:
  - Women.
  - Small and medium-sized enterprises (SMEs).
- Microfinance institutions satisfy unmet demand for financial services for women in some economies.

### Policy Implications and Emerging Challenges
- Need to close gaps in FAS data collection, account for cross-country differences in financial intermediation structures, and keep pace with digital finance innovations to better track enablers of financial inclusion.
- New modalities of financial access introduce policy challenges, including:
  - Consumer protection considerations.
  - Financial stability considerations associated with digital and non-traditional providers.
- Continued enhancement of FAS data and reporting is critical to support policymakers in targeting and evaluating financial inclusion policies.

### Key Statistics and Milestones
- "10th anniversary" of the FAS (since 2009 launch).
- Launched in 2009 at the IMF–World Bank Annual Meetings in Istanbul.
- "More than 50 countries" have adopted a National Financial Inclusion Strategy.
- United Nations Sustainable Development Goals (SDGs) aim to end poverty by "2030" and consider financial inclusion a key factor in that drive.

*Executive Summary — mfaea - Executive Summary*

### Introduction

### Introduction

### Overview and purpose
- The paper documents progress in advancing financial access and use across the globe while noting persistent gaps for segments of the population, including women and small and medium-sized enterprises (SMEs).
- It highlights shifts in modes of accessing financial services: a move away from traditional brick-and-mortar branches toward branchless banking (mobile and internet banking), agent banking (retail agent outlets), and mobile money—especially important in Latin America and sub-Saharan Africa.
- It stresses the need to close Financial Access Survey (FAS) data collection gaps (including those of advanced economies) and the importance of accounting for differences in financial intermediation structures, including digital finance, to fully capture progress on financial inclusion.

### Structure of the paper
- Chapter 2: Reviews definitions of financial inclusion and the current landscape for measuring financial access and use, including available data sources.
- Chapter 3: Presents the FAS database, components, evolution over the past decade, and country reporting over time.
- Chapter 4: Analyzes recent trends and developments in access to and use of financial services using FAS indicators on traditional banking, digital finance, and beyond.
- Chapter 5: Examines financial access of women and SMEs and highlights the need for greater FAS data granularity.
- Chapter 6: Concludes with discussion on improving the FAS database, closing data gaps by building statistical capacity, and a blueprint for future FAS directions.

### Funding and partnerships
- The FAS has received financial support from donors including the Netherland’s Ministry of Foreign Affairs, the Bill & Melinda Gates Foundation, and donors sponsoring the Data for Decisions (D4D) Fund, launched in June 2018.
- The D4D Fund donor partners include China, European Union, Germany, Japan, Korea, Luxembourg, The Netherlands, Norway, and Switzerland, as of end 2019 (https:// www .imf .org/ en/ Capacity -Development/ D4D).

### What is financial inclusion and why it matters
- Financial inclusion is multifaceted, encompassing access, usage, affordability, usefulness, quality, and awareness of financial services and products.
- Definitions cited:
  - Sahay and others (2015a): “the access to and use of formal financial services by households and firms.”
  - Jahan and others (2019): focus on three dimensions—(1) access to financial services, (2) usage of financial services, and (3) the quality of financial products and service delivery.
  - World Bank (2018): individuals and businesses having access to useful and affordable financial products and services for transactions, payments, savings, credit, and insurance delivered responsibly and sustainably.
- Policy relevance:
  - Financial inclusion can promote inclusive growth and reduce poverty by facilitating savings, efficient capital allocation, and risk diversification (Dabla-Norris and others 2015; Sahay and others 2015b).
  - It can enhance financial stability by broadening the depositor base and diversifying loan portfolios (Mehrotra and Yetman 2015; Han and Melecky 2013).
  - Rapid expansion of access can pose risks if linked to rapid credit growth or expansion of unregulated financial sectors (Mehrotra and Yetman 2015).

### Measurement: dimensions and practical proxies
- Financial inclusion dimensions (as used in the paper): Access; Usage; Other dimensions such as affordability, quality, range of options, and financial knowledge.
- Access and usage are more readily observable and commonly used as proxies for financial inclusion (examples: ATMs, bank branches, value of deposits).
- The G20 endorsed 38 Financial Inclusion Indicators in 2012: 21 usage, 11 access, and 6 quality indicators.

### Data sources: supply-side vs demand-side
- Supply-side data:
  - Collected from financial services providers (FSPs) via administrative reporting to central banks/regulators.
  - Typically lower cost, higher frequency, and often higher quality than demand-side surveys.
  - The FAS is a supply-side dataset based on administrative reporting and is updated annually.
- Demand-side data:
  - Collected through sample surveys of households and firms (for example, World Bank Global Findex, Enterprise Survey, FinScope, FinAccess, FITS).
  - Costlier, less frequent, and resource-intensive but can provide detailed information on barriers and excluded segments.
- Complementarity:
  - For a comprehensive picture, supply-side and demand-side data can usefully complement each other.

### Select data sources on financial inclusion (as listed)
- Supply-side: IMF Financial Access Survey (FAS); GSMA Global Adoption Survey; Global Payment Systems Survey.
- Demand-side: World Bank Global Findex; World Bank Enterprise Survey; FinScope; FinAccess; Financial Inclusion Tracker Survey (FITS).

### The Financial Access Survey (FAS): overview and evolution
- The FAS is the sole supply-side annual data source on financial access and use with near-global reach.
- Coverage and scope:
  - Covers 189 jurisdictions, including 40 fragile states.
  - Contains 121 different series on financial access and use spanning 15 years (2004–18).
  - Provides 64 indicators normalized to adult population, land area, and GDP to capture access and use across institutions, products, and user segments (Appendix I).
- Evolution highlights:
  - FAS launched in 2009.
  - 2012: Breakdown of institutions introduced.
  - 2014: Mobile money module started.
  - 2016 & 2017: Gender pilot launched.
  - 2018: Gender statistics mainstreamed; series for debit cards, credit cards, and non-branch retail agents introduced.
  - 2019: Mobile and internet banking added; gender statistics expanded.
- Methodology:
  - Cross-country comparable because countries follow common methodological and conceptual guidelines (IMF’s Financial Access Survey Guidelines and Manual).
  - Latest data are posted at the FAS data portal (http:// data .IMF .org/ FAS), updated on a rolling basis; preceding year’s data are accessible as early as May of the current year.

### FAS indicators and content
- The FAS includes 64 derived indicators capturing:
  - Geographical outreach (access points): number of financial institutions by type, ATMs, non-branch retail agent outlets, registered and active mobile money agent outlets.
  - Usage of financial services: deposit and loan accounts for households and SMEs (including gender-disaggregated household data for commercial banks), borrowers and outstanding loans for microfinance institutions (including gender-disaggregated data), insurance usage (life insurance), branchless banking (credit/debit cards, mobile and internet banking), and mobile money adoption and usage (registered/active accounts, transactions, balances).
- Current gender coverage:
  - Gender-disaggregated data included in main survey since 2018; in 2019 gender breakdowns expanded to deposit-taking microfinance institutions and non-deposit-taking microfinance institutions.
  - As of 2019, gender data are available for 49 countries, with close to half of gender reporters being low- and lower middle-income countries, including 11 fragile states.
- Gaps:
  - No gender-disaggregation currently for branchless banking and mobile money in the FAS.

### Coverage and reporting status (summary statistics)
- Among countries reporting data for the 2019 FAS round:
  - Average number of reported series: 65 (out of 121).
  - Average number of reported indicators: 32 (out of 64).
  - The number of indicators reported by countries ranges between 7 and 64.
- Reporting heterogeneity:
  - Top five reporters by number of indicators/series: Pakistan, Myanmar, Bangladesh, Guinea, and Samoa—mostly low- and middle-income countries, many with National Financial Inclusion Strategies.
- Selected thematic reporting highlights (as presented):
  - Granular data on FSPs: depositors, borrowers, deposit accounts, loan accounts, outstanding loans and deposits disaggregated by FSP type.
  - Insurance corporations: number of policy holders and number of insurance policies for life and non-life insurance—close to 160 countries report these data.
  - Branchless banking: data on retail agent outlets, debit cards, credit cards, mobile and internet banking—more than 100 countries report debit and credit cards; fewer countries report non-branch retail agents.
  - Mobile money: seven series covering availability, adoption, and usage; among more than 90 countries where mobile money services are available, 73 report the data to the FAS, with an increasing number over time.
  - SMEs: usage indicators for SMEs are available; SME data reporting by low-income countries is relatively limited, but the breakdown is available for roughly 60 middle-income countries.
- Reporting detail examples (as presented in Table 1):
  - Table entries appear as presented in the source (examples): "Mobile money1851473"; "Gender 5341049"; "Insurance188752157"; "Small and medium-sized enterprises 186125104"; "Credit unions and credit cooperatives 14462686"; "Microfinance institutions Non-deposit-taking1049968 Deposit-taking2238565"; "Branchless banking Non-branch retail agents426737 Mobile and internet banking3422368 Debit cards86540113 Credit cards76244113".

### The FAS in the global policy context
- The FAS is the official custodian for data used to monitor relevant UN SDGs:
  - In 2016, two FAS indicators were adopted to monitor Target 8.10: (1) the number of commercial bank branches per 100,000 adults and (2) the number of automated teller machines (ATMs) per 100,000 adults.
- G20 recognition:
  - The FAS is an officially recognized data source for the G20 Financial Inclusion Indicators. At the Los Cabos Summit in June 2012, G20 leaders endorsed the G20 Basic Set of Financial Inclusion Indicators and the IMF FAS as a data source. The set has since been expanded to include indicators on digital finance; nine FAS indicators are included in the G20 Financial Inclusion Indicators.
- Role:
  - The FAS provides a wide range of series and indicators used for cross-country comparison of financial access and usage trends and for calibrating targeted financial inclusion policies.

*Source: mfaea - Introduction (IMF Financial Access Survey introduction chapter).*

### 2. Number of ATMs per 100,000 adults

### 2. Number of ATMs per 100,000 adults

### Overview
- Access indicators such as the number of ATMs per 100,000 adults and commercial bank branches per 100,000 adults have been commonly used as measures of financial access.
- According to FAS data, the number of commercial bank branches per 100,000 adults aggregated for the whole world has remained stagnant for the past five years.
- The growth in the availability of ATMs globally has also remained rather subdued during the same period—the world growth of ATMs per 100,000 adults in 2018 was less than 1 percent.

### Global and income-group trends in ATMs and branches
- Access to banks (ATMs and branches) has actually grown between 2014 and 2018 in low and lower middle-income countries, where there is unmet demand for banking services.
- Trend by income group between 2014 and 2018:
  - Low-income: ATMs and branches increased.
  - Lower middle-income: ATMs and branches increased.
  - Upper middle-income: ATMs increased in the last five years; bank branches have slightly decreased.
  - High-income: Both ATMs and bank branches indicators have declined over the last five years.
- The decline in ATMs and branches in some economies does not necessarily imply reduced access because other modes of access (mobile money, agent banking, mobile and internet banking) have emerged.

### Relationship between ATMs, mobile money, and retail agents
- There is an inverse relationship between registered mobile money agents and ATMs for countries reporting mobile money to the FAS in 2018: the shallower the banking system (fewer ATMs), the greater the opportunities for mobile money.
- Mobile money agents are more prevalent in regions with lower ATM penetration (sub-Saharan Africa, South Asia).
- Countries with extensive mobile money agent networks tend to have more enabling mobile money regulation (positive correlation with the GSMA Mobile Money Regulatory Index).

### Mobile money growth and ATM context (selected statistics)
- M-Pesa, launched in March 2007 in Kenya, now has nearly 32 million users in 10 countries.
- Ghana: value of mobile money transactions increased from 8 percent of GDP in 2014 to 74 percent of GDP in 2018.
- South Asia: average annual growth rate of 52 percent in the number of mobile money transactions per 1,000 adults over the past five years—the highest across all regions.
- For countries reporting mobile money to the FAS for 2018, the plotted relationship shows higher mobile money agent density where the number of ATMs per 100,000 adults is lower.

### Fragile states: ATMs, agents, and spatial access
- Mobile money has proven to be a viable alternative in fragile states; more than 20 fragile states have mobile money services.
- On average in fragile states, for every commercial bank branch, there are close to 47 mobile money agents.
- Between 2015 and 2017 in fragile states:
  - Number of commercial bank branches per square kilometer remained fewer than two.
  - Number of mobile money agents per square kilometer increased from 18 to 27, a 50 percent increase.
  - By comparison, the number of mobile money agents grew by 16 percent in non-fragile states.
- Ratio of Mobile Money Agents to Commercial Bank Branches (select fragile states):
  - Guinea 174
  - Papua New Guinea 131
  - Zimbabwe 116
  - Mali 95
  - Guinea Bissau 64
  - Togo 59
  - (Note: Data for Papua New Guinea is from 2015, the rest from 2017.)

### Implications and policy considerations
- Declines in ATMs and branches in some economies coincide with the rise of digital alternatives (mobile and internet banking, debit/credit cards) and with branchless banking models such as agent banking.
- Digital modes of accessing financial services lower barriers of financial access (travel time and transaction costs) and can deepen financial access in developing countries.
- The growth of mobile money calls for closer monitoring and, in some cases, regulations of depositors’ exposure to default and liquidity risks (loss of stored funds and inability of the service providers to return funds on demand).
- Enabling regulatory environments are associated with broader outreach of mobile money (GSMA Mobile Money Regulatory Index dimensions include authorization, know your customer, consumer protection, agent networks, transaction limits, and investment and infrastructure).

*Source: IMF, Financial Access Survey; and IMF staff (excerpts from "Measuring Financial Access—10 Years of the IMF Financial Access Survey").*

### 1. Outstanding Household Deposits with Commercial Banks

### 1. Outstanding Household Deposits with Commercial Banks

### Microfinance and Women's Access to Finance
- In several low- and middle-income countries, less than 30 percent of borrowers at commercial banks are women (examples cited: Pakistan, South Sudan, Uganda).
- In high-income countries in Europe, including Denmark and Poland, the share of women borrowers at commercial banks is close to 50 percent.
- Nonbank institutions such as microfinance institutions (MFIs) fill gaps for women’s access:
  - Bangladesh: 10 percent of borrowers at commercial banks are women; 91 percent of borrowers at deposit-taking microfinance institutions are women.
  - Bangladesh: outstanding deposits and loans from deposit-taking microfinance institutions have grown at an average annual rate of 20 percent during the last five years.
  - Myanmar and Pakistan: more than 70 percent of the value of the loans extended by non-deposit-taking microfinance institutions are to women.
- Risks and policy considerations:
  - High credit growth in microfinance can entail credit risk; the microfinance crisis in the Indian state of Andhra Pradesh is cited as an example, highlighting the need for supervision and regulation of the sector.

### Financial Inclusion of SMEs: Importance and Current Access
- SMEs contribute up to 45 percent of employment and 33 percent of GDP in developing countries.
- Bank lending to SMEs has remained stagnant in low- and middle-income countries—at about 6 percent of GDP over the past five years.
- Cross-country variation in SME lending growth is large; improvements in countries like Fiji, Georgia, and Mongolia have been supported by policy measures:
  - Fiji: SME Credit Guarantee Scheme Guidelines under which the Fijian government guaranteed 50 percent of the principal of outstanding SME loans.
  - Georgia: 2016–20 SME Development Strategy.
  - Mongolia: USAID credit guarantees of up to 60 percent of SME loan amounts (Reach Project).

### Empirical Evidence: SME Financial Access and Growth (Box 3)
- A GMM panel regression with country fixed effects for 2004–18 was estimated using FAS data and SME instruments (number of SME borrowers, SME loan accounts, SME depositors, SME deposit accounts).
- Sample sizes: 40 observations for upper middle-income countries, 52 for lower middle-income countries, and 50 for low-income countries.
- Estimated coefficients (regressor variable: loans to SMEs in logs; dependent variable: GDP per capita in logs):
  - Low-income group loans to SMEs
    - Coefficient: 0.26
    - Standard Error: 0.07
    - R2: 0.83
    - t-Statistic: 3.82
    - Probability: 0.00
  - Lower middle-income group loans to SMEs
    - Coefficient: 0.51
    - Standard Error: 0.18
    - R2: 0.96
    - t-Statistic: 2.80
    - Probability: 0.01
  - Upper middle-income group loans to SMEs
    - Coefficient: 0.21
    - Standard Error: 0.09
    - R2: 0.64
    - t-Statistic: 2.38
    - Probability: 0.02
- Interpretation: increased financial access to SMEs is positively correlated with GDP per capita growth, with differentiated impacts across income groups.

### FAS Coverage, Trends, and Data Developments
- Since 2019, the FAS has collected financial access and use data annually.
- The FAS database:
  - 64 indicators are listed in the Appendix.
  - Indicators are derived from 121 underlying time series submitted by country authorities.
- Reporting and capacity:
  - Not all 189 jurisdictions report all series to the FAS.
  - Data reporting improved in 2019: 171 countries reported in 2019 compared to 168 in 2018.
  - The IMF started organizing regional workshops on financial access data collection in 2018; workshops have taken place in Asia and Africa, with the next workshop planned for the Middle East and Central Asia region in 2020.

### Looking Forward: Enhancements and Policy Recommendations for the FAS
- Closing data gaps:
  - Support country statistical capacity; continue regional workshops to improve reporting.
- More effective use of FAS indicators:
  - Consider new indicators using existing series (example: value of mobile money transaction per account).
  - Designate a subset of FAS indicators as “basic indicators” for countries with limited statistical capacity.
- More granular data on fintech:
  - Collect data on number of fintech firms, number of loans conducted through fintech, and reduced transaction costs to better capture digital finance effects.
- Data collection on “other dimensions” of financial inclusion:
  - Collect systematic information on costs and barriers to financial access (fees, interest charges, minimum balance requirements) and on national financial inclusion policies.
  - Capture peer-to-peer lending and inclusive informal access to finance (eg, “lending club”).
- Knowledge sharing of financial inclusion policies:
  - Catalog policy initiatives, including objectives of national financial inclusion strategies and measures related to women’s financial inclusion, SMEs, consumer protection, and financial literacy.
- Balance enhancements with statistical capacity constraints:
  - In the medium term, further disaggregation and new data needs must be weighed against countries’ capacity; explore innovative, efficient data-collection methods (publicly available data, big data partnerships with financial service providers or BigTech companies).
- Policy implications beyond data:
  - As digital and alternative modalities of financial access gain traction, policymakers must also address consumer protection and financial stability considerations.

*Source: mfaea - 1. Outstanding Household Deposits with Commercial Banks*

### References

### References

### Measurement, Indexes, and Data Sources
- Demirgüç-Kunt, A., and L. Klapper. 2012. “Measuring Financial Inclusion: The Global Findex Database.” Policy Research Working Paper 6025, International Monetary Fund, Washington, DC.
- Gadanecz, B., and B. Tissot. 2016. “Measures of Financial Inclusion–A Central Bank Perspective.” Irving Fisher Committee Report, Bank for International Settlements, Basel.
- Global Partnership for Financial Inclusion (GPFI). 2012. G-20 Financial Inclusion Indicators.
- GPFI. 2016. GPFI 2016. G-20 Financial Inclusion Indicators (Expanded Set).
- International Monetary Fund (IMF). 2016. Monetary and Financial Statistics Manual and Compilation Guide. Washington, DC.
- IMF. 2019b. Financial Access Survey 2019 Trends and Developments. Washington, DC.
- Svirydzenka, K. 2016. “Introducing a New Broad-Based Index of Financial Development.” IMF Working Paper No 16/5, International Monetary Fund, Washington, DC.
- World Bank. 2015. “How to Measure Financial Inclusion.” Washington, DC.
- World Bank. 2018. “Overview: Financial Inclusion.” Washington, DC.

### IMF and IMF-Related Analytical Work on Financial Inclusion
- Jahan, S., J. De, F. Jamaludin, P. Sodsriwiboon, and C. Sullivan. 2019. “The Financial Inclusion Landscape in the Asia-Pacific Region: A Dozen Key Findings.” IMF Working Paper No 19/79, International Monetary Fund, Washington, DC.
- Loukoianova, M. E., Y. Yang, M. S. Guo, M. L. Hunter, M. S. Jahan, M. F Jamaludin, and J. Schauer. 2018. “Financial Inclusion in Asia-Pacific.” IMF Departmental Paper Series No. 18/17, International Monetary Fund, Washington, DC.
- IMF. 2019a. Mobile Money Note 2019. Washington, DC.
- IMF. 2019c. “Republic of San Marino: 2019 Article IV Consultation–Press Release, Staff Report, and Statement by the Executive Director for the Republic of San Marino.” Washington, DC.
- Sahay, R., M. Čihák, P. N’Diaye, A. Barajas, S. Mitra, A. Kyobe, Y. N. Mooi, and S. R. Yousefi. 2015a. “Financial Inclusion: Can It Meet Multiple Macroeconomic Goals?” IMF Staff Discussion Note No 15/17, International Monetary Fund, Washington, DC.
- Sahay, R., M. Čihák, P. N’Diaye, A. Barajas, R. Bi, D. Ayala, Y. Gao, A. Kyobe, L. Nguyen, C. Saborowski, K. Svirydzenka, and S. R. Yousefi. 2015b. “Rethinking Financial Deepening: Stability and Growth in Emerging Markets.” IMF Staff Discussion Note No 15/08, International Monetary Fund, Washington, DC.

### Mobile Money, Branchless Banking, and Consumer Protection
- Grossman, J. 2016. “Safeguarding Mobile Money: How Providers and Regulators Can Ensure that Customer Funds Are Protected.” Global System of Mobile Communications Association, London.
- Ivatury, G., and I. Mas. 2008. “The Early Experience with Branchless Banking.” CGAP Focus Note No. 46.
- Monks, K. 2017. “M-Pesa: Kenya’s Mobile Money Success Story Turns 10.” CNN, February 24.
- Safaricom. 2019. “About us.” Nairobi.
- Otoritas Jasa Keuangan (OJK). 2016. “OJK Promotes Branchless Banking Program to Boost Financial Inclusion in West Sumatra.” Press Release, Jakarta.
- IMF. 2019a. Mobile Money Note 2019. Washington, DC.

### Financial Inclusion Strategies, Country Studies, and Case Studies
- Grace, D., J. Hwang, and A. G. Mora. 2014. “Paraguay – National Financial Inclusion Strategy 2014–2018.” World Bank, Washington, DC.
- Government of Georgia. 2015. “SME Development Strategy of Georgia 2016–2020.” Tbilisi.
- Superintendencia de Banca, Seguros y AFP (SBS). 2014. “The Use of Financial Inclusion Data Country Case Study of Peru: Fine-Tuning Regulation Based on Access Indicators.” Lima
- World Bank. 2014. The Potential of New Delivery and Business Models for Financial Inclusion in Peru. Washington, DC.

### SMEs, Credit Access, and Development Finance
- Teima, G., A. Berthaud, M. Bruhn, O. DeCastro, M. Joshi, M. Mirmulstein, and A. Onate. 2010. Scaling-up SME Access to Financial Services in the Developing World. Washington, DC: World Bank.
- Reserve Bank of Fiji. 2016. “Small and Medium Enterprises Credit Guarantee Scheme Guidelines.” Suva.
- United States Agency for International Development (USAID). 2016. “REACH Project–Small and Medium Enterprise Access to Credit.” Washington, DC.

### Financial Stability, Crises, and Microfinance
- Han, R., and M. Melecky. 2013. “Financial Inclusion for Financial Stability: Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis.” Policy Research Working Paper Series 6577, World Bank, Washington, DC.
- Saxena, S. 2014. “The 2010 Microfinance Crisis in Andhra Pradesh, India and Its Implications for Microfinance in India.” Reconsidering Development 3 (1): 55–68.
- Mehrotra, A. N., and J. Yetman. 2015. “Financial Inclusion: Issues for Central Banks.” BIS Quarterly Review (March) 83–96.

### Gender, Law, and Regulatory Fine-Tuning
- Iqbal, S. 2018. Women, Business and the Law 2018: Getting to Equal. Washington, DC: World Bank.
- SBS. 2014. “The Use of Financial Inclusion Data Country Case Study of Peru: Fine-Tuning Regulation Based on Access Indicators.” Lima

*Content compiled from the References section of the source PDF.*

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_Source: https://www.imf.org/-/media/files/publications/dp/2020/english/mfaea.pdf_