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Low level of financial inclusion
05
101520253035404550
Bank accounts per 100 adults
Bank branches
per 100,000 adults
Firms with line of
credit to total firms (all firms)
(%), 2009-11
Adults with an account at a formal fin. inst. to total adults
(%)
Non-African developing countries
Sub-Saharan Africa
Source: Beck and Cull (2014)
Financial inclusion – low, but with high intra-regional variation
Source: Klapper and Singer (2015), based on Demirguc-Kunt and Klapper 2013.
Gender dimensions – conditional different from unconditional
• Conditioning on household/enterprise characteristics shows no significant difference between male and female individuals or male and female-headed enterprises (Aterido, Beck and Iacovone, 2013)
Source: Beck and Cull (2014)
Reasons for not bankingSub-Saharan Africa Non-African developing country
Lack of money 68 52
High costs 25 18
Lack of the necessary documentation 25 11
Geographic barriers 22 13
lack of trust 12 11
Religious reasons 2 4
No need 5 9
Competition is key to
innovation
Focus on Services;
not institutions• Innovation might come
from unexpected quarters• New products (leasing
and factoring)• New delivery channels
• Competitio
n within the
Banking Sector
• Look beyond the banking
sector
• Look beyond the
traditional fin
ancial
services sector
Innovation is key• Competition is key for innovation that is necessary for broadening
financial systems • Reap potential benefits of technology
• Level playing field – open infrastructure to all safe and sound players• Might imply an activist government role• Relates to credit registries, payment system etc.
• New regulatory approach to innovation• Revert sequence of legislation-regulation-innovation
• New approach to inclusion• Move away from credit- or savings-led inclusion to payment-led inclusion
approach