1. Financial Regulations for Improving Financial Inclusion
- Author:
- Stijn Claessens and Liliana Rojas-Suarez
- Publication Date:
- 03-2016
- Content Type:
- Special Report
- Institution:
- Center for Global Development
- Abstract:
- As recently as 2011, only 42 percent of adult Kenyans had a financial account of any kind; by 2014, according to the Global Findex, database that number had risen to 75 percent. [1] In subSaharan Africa, the share of adults with financial accounts rose by nearly half over the same period. Many other developing countries have also recorded gains in access to basic financial services. Much of this progress is being facilitated by the digital revolution of recent decades, which has led to the emergence of new financial services and new delivery channels. Whereas payment services often are the entry point into using formal financial services, they are not the only lowcost and widely accessible financial services being delivered in recent years. Driven by advances in new digital payment services, smallscale credit and new modes for delivering insurance services are being offered in several developing countries. Digital (payment) records are being used to make decisions about provision of credit to small businesses or individuals who do not have traditional collateral or credit history to secure loans. Additionally, affordable mobile systems have led to the provision of new and innovative financial services that would not be economically sustainable under the traditional brickandmortar model such as mobilebased crop microinsurance in subSaharan Africa and payasyougo energy delivery models for offgrid customers in India, Peru, and Tanzania. [2] Increased access to basic financial services, especially payments services, by larger segments of the population reflects the growing use of digital technologies in developing countries. Simultaneously, the adoption of proper regulation based on countryspecific opportunities, needs and conditions has been critical.
- Topic:
- International Political Economy, International Trade and Finance, and Financial Markets
- Political Geography:
- Global Focus