CGAP Report finds access to financial services still a challenge

n seeking to give poor people access to critical financial services, policy makers around the world are often hampered by the lack of information they need to tackle this challenge. There often is little data available to answer basic, but important, questions: Who has access to savings or loan accounts? What kind of institutions do these customers use? Which policies actually help to bring financial services to poor people? How does branchless / mobile banking (including cell phone banking) increase the reach of services?

A new CGAP report, Financial Access 2009, provides, for the first time, global indicators and a range of policy recommendations that can help policy makers and regulators broaden access to financial services for poor people. It draws on information provided by financial regulators in 139 countries and identifies barriers that keep formal banking services restricted to the wealthiest people around the world.

The report found that people in emerging markets on average have one quarter the deposits and loans of those in developed countries. This means that many poor people do not have important tools that can help them invest in their businesses, spend more on household items, or have the funds to cope with crises.

In addition to confirming the vast gulf in the number of savings and loan accounts between rich and poor countries, the report also notes that remarkably few countries collect comprehensive data relating to financial access, outside the value of accounts in their financial systems.