## Understanding Barriers to Financial Access: Insights from Bank Pricing Data

_IMF Working Papers, July 12, 2024_

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## Bibliographic details
- Authors: Kazuko Shirono, Berhe Beyene, Fozan Fareed, Christiaan Loots, Andrea Quevedo, Kameshnee Naidoo
- Published: July 12, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400280627.001

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### Summary
- Purpose: Analyze costs of financial access faced by low-income segments using a novel dataset on bank pricing (fees and charges for various banking services).
- Data source: Collected as part of the United Nations Capital Development Fund’s (UNCDF) Making Access Possible (MAP) program using a market research approach.
- Sample: 34 low- and middle-income countries in the ASEAN, SADC, and WAEMU regions.
- Key headline result: Costs of maintaining a bank checking account and conducting a few basic transactions can exceed 5 percent of monthly income for consumers in more than 10 percent of the countries in the sample, mainly in the WAEMU and SADC regions.
- Core conclusion: Affordability is a considerable barrier to access to financial services—particularly for low-income households and SMEs—and more granular data on affordability is needed for effective policymaking.

### Key findings and statistics
- Sample size: 34 low- and middle-income countries.
- Regions covered: ASEAN, SADC, and WAEMU.
- Affordability threshold highlighted: costs can exceed 5 percent of monthly income.
- Prevalence: this threshold is exceeded in more than 10 percent of the countries in the sample.
- Main regional concentration of high costs: WAEMU and SADC regions.
- Publication metadata:
  - Pages: 36
  - Volume: 2024
  - Issue: 150
  - Series: Working Paper No. 2024/150
  - DOI: https://doi.org/10.5089/9798400280627.001
  - Stock No: WPIEA2024150
  - ISBN: 9798400280627
  - ISSN: 1018-5941
  - Publication date: July 12, 2024
  - Authors: Kazuko Shirono, Berhe Beyene, Fozan Fareed, Christiaan Loots, Andrea Quevedo, Kameshnee Naidoo

### Analysis highlights
- Affordability dimension: The paper focuses specifically on the costs (fees and charges) associated with banking services as a key component of financial exclusion.
- Distributional concern: High relative costs disproportionately affect low-income households and small and medium enterprises (SMEs).
- Regional patterns: WAEMU and SADC show concentration of countries where basic banking costs can represent a large share of monthly income.

### Policy implications and recommendations
- Data needs: Collect more granular data on affordability aspects of financial access to better inform policymaking.
- Policy focus: Address affordability barriers to improve access for low-income households and SMEs; targeted interventions may be needed in WAEMU and SADC where costs are more likely to exceed 5 percent of monthly income.
- Monitoring: Use enhanced bank pricing data to track and monitor the impact of policies aimed at reducing the cost burden of basic banking services.

### Subjects and keywords
- Subjects: Economic sectors, Financial inclusion, Financial markets, Financial services, Income, Mobile banking, National accounts, Small and medium enterprises, Technology
- Keywords: affordability, Africa, bank checking account, bank pricing, bank pricing datum, banking product, cost of banking services, Financial access, financial inclusion, Income, Mobile banking, Small and medium enterprises, small business bank products usage

*IMF Working Papers: "Understanding Barriers to Financial Access: Insights from Bank Pricing Data", Working Paper No. 2024/150, July 12, 2024.*

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_Source: https://www.imf.org/en/publications/wp/issues/2024/07/12/understanding-barriers-to-financial-access-insights-from-bank-pricing-data-551370_