Currently, there are two billion people worldwide who cannot access financial services because their data is not held on ‘traditional’ sources. That equates to 2.7 million people who are unlikely to be named on utility bills, have a credit card, pay rent or have a mortgage. Elsewhere Estonia also has the least banking population at 1.09 million with a rate of 81.95% based on its current population of 1.33 million. In 2017, 57 percent of the population in Sub-Saharan Africa did not have a bank account. One of the ways China is doing this is by increasing the number of financial institutions. Utilise a single element or multiple processes – it’s entirely up to you. Interestingly, the Reserve Bank of India began granting approval in 2016 for small finance banks. High street banks are still utilising multiple forms, paper files, manual compliance checks and in-person identification checks, a process which has long been considered archaic, time-consuming and creates a poor user experience. Financial inclusion means that people have access to basic financial services like a savings account, credit and insurance . However, WBG analysis discounts these overlaps for the Total Opportunity for each country, thereby the Total Opportunity may be less than the … Share on Facebook (opens new window) Share on LinkedIn (opens new window) Share on Twitter (opens new window) Johannesburg resident, Elizabeth Motadi, is no stranger to saving money. There are 5.2 billion unique mobile phone users but 7.92 mobile phone connections in the world today, according to the latest data from GSMA Intelligence. Digital banks across Asia Pacific (APAC) enjoyed three times the growth in customer bases in 2020/2019, compared to traditional banks. Banks are constantly innovating to come up with new ways to reach more people. … Third on this list is Pakistan with a population of 99 million people without bank accounts. By Microsoft News Center 26 June, 2019. Five-hundred and fifteen million individuals opened an account for the first time over the past three years, reducing the unbanked population to 1.7 billion adults worldwide. Each of the 10 approved banks must open a quarter of their banks in unbanked regions of the country, meaning that is no bank branches currently located in that region. 1 And while 66% of the current population were raised with internet access, 2 fewer than 40% of Indonesian smartphone users have used financial services apps before. We have gathered data on the percentage of adults with a bank account from The Global Findex Database, based on information from more than 140 countries and cross referenced it against the mobile phone connections, internet users and active social media users per capita from Data Reportal, in those countries: The Global Findex database is the world’s most comprehensive data set on how adults save, borrow, make payments, and manage risk. Relying on traditional data to verify identity doesn’t just alienate the modern digital consumer, it also leads to huge demographics being unable to access the services that they want. This figure translates to about 13% of the total world’s population without access to banks. In China, 35% of women do not have accounts compared to 27% for men. A vast number of millennials do not have CRA data so if this source is used, they are rejected. According to the latest research, every second adult in the world is unbanked. Southeast Asia alone has 650 million unbanked individuals. Interestingly, another Muslim dominated country on the list, Bangladesh, did not have as high a percentage of people who cited religious reasons. This demonstrates that the data being created by these users and platforms through smart devices is not being used to enable these unbanked customers financially. These are, as such, often referred to as ‘thin-file’ customers. Traditional checks, such as using credit history mean that many good customers are turned away. Sixty-six percent of the country’s 260 million population are “unbanked” (don’t own a bank account). According to a survey carried out in Brazil in May 2019, approximately 60 percent of the respondents who stated not having access to a bank account were women. Here at Hello Soda, we’ve a comprehensive family of KYC and AML solutions all working together and delivered via a single API integration. Utilising all forms of data, this integrated approach helps increase pass rates in countries all over the world, which in turn increases revenue and customer acquisition with real-time onboarding, creating a better customer experience. 2019 FDIC Survey. According to the database, more than 20% of adults globally receive wages or government transfers in cash, and many people in developing countries pay bills in cash. Share of banked population APAC 2020 by country or region. Following the fall in the price of crude oil in recent times, a lot of banks were severely affected. More importantly, these alternatives enable remote account opening, lowering the operational costs for banks aiming to serve isolated consumers. This figure translates to about 13% … These ways include going to the bank itself, using an ATM, or other means if available. The InfoBrief highlighted that Indonesia’s unbanked population is expected to be cut by half to under 20% by 2025. In 2020, after the introduction of various social benefit programs during the COVID-19 pandemic, there was an overall decrease in the unbanked population throughout Latin America. National population clock: 4 Indonesia: 271,350,000: 3.45%: 31 Dec 2020: National annual estimate: 5 Pakistan: 225,200,000: 2.86%: 1 Jul 2021: UN Projection: 6 Brazil: 213,013,653: 2.71%: 17 Apr 2021: National population clock: 7 Nigeria: 211,401,000: 2.69%: 1 Jul 2021: UN Projection: 8 Bangladesh: 170,509,800: 2.17%: 17 Apr 2021: National population clock: 9 About 1.7 billion adults remain unbanked—without an account at a financial institution or through a mobile money provider. In order for them to gain access to financial services, the data that is relied upon in verification processes needs to expand to include more modern sources. About 191,000,000 people in India do not have bank accounts. Interventions cannot always be added up simply to create the country opportunity, as the three interventions may overlap. Of the global 1.7 billion people unbanked in the world, China accounts for about 224 million people. Alternative data sources such as these are less susceptible to fraud; social profiles for example are often built up over a number of years and are verified by their connections. With 70% Unbanked Population, Myanmar Bets on Fintech to Improve Financial Inclusion. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers. In high-income economies, almost all adults own an account — meaning the unbanked population can overwhelmingly be found in the developing world. As per a 2014 World Bank paper, The Global Findex Database 2014: Measuring Financial Inclusion around the World, three countries—India, China and Indonesia—accounted for 38% of … WASHINGTON, April 15, 2015 — From 2011 and 2014, 700 million people became account holders at banks, other financial institutions, or mobile money service providers, and the number of “unbanked” individuals dropped 20 percent to 2 billion adults, says a new report released today. On a global scale however, the numbers of people without readily accessible bills or statements is far higher. In countries with highest "no-account" rates, almost 40% of the population face financial exclusion >> More information about WSBI-ESBG efforts on financial inclusion BRUSSELS, 5 April 2016 – More than 37 million adult EU citizens still lack access to formal financial services, with room for Europe's savings and retail banks to close the gap. How Nigeria can bank its unbanked population. Our global ID, KYC & AML platform, Sodium, is designed to help save you time and money, streamline your customer journey, automate your onboarding process, reduce fraud and achieve regulatory compliance. Pakistan is an interesting case in terms of what the major reason is for not having a bank account. Traditional “bricks and mortar” banking infrastructure struggles to make the business model work to serve low-income customers, particularly in rural areas. It is expected that … A unique and real-time ID scoring system intelligently verifies identity through a combination of data sources, including digital footprint verification, document authentication, facial recognition matching, liveness verification, live utility data address verification and CRA identity checks. While more than two-thirds of the adult population has access to banking and mobile money accounts, 1.7 billion adults remain unbanked. Be the first to get latest updates, news, tips & guides. Covering more than 140 economies, the indicators of financial inclusion measure how people save, borrow, make payments and manage risk. Comparatively, as of October 2020, there are 4.14 billion active social media users worldwide (more than half of the global population) with the average social media user owning an account on 8.3 different social platforms. One simple integration; a flexible 360° solution which is scalable and secure. Country opportunities are calculated by segmenting unbanked financially active adults who can be reached through specific interventions. Share. Okafor Endurance Mar 30, 2021. Despite improving connectivity, many countries in Asia still show large percentages of the ‘unbanked,’ or people who simply do not have ownership or access to traditional bank accounts. China and India, despite having relatively high account ownership, claim large shares of the global unbanked population because of their sheer size. Recently, we explored how FinTech solutions are beginning to create more inclusive financial services, but what is the current state of play around the world? Incumbent banks have also had to accommodate at least a 50% growth in the quantity of digital customer transactions and interactions. In 2020, commerce is customer centric. Equally in countries with thin files, where traditional data does not exist or is scarce, our product offering can be used to qualify and verify new customers. Since 2011, there have been about 1.2 billion unbanked people who have gained access to banks. The FDIC Survey of Household Use of Banking and Financial Services supports the FDIC’s mission of maintaining public confidence in the U.S. financial system. Of the global 1.7 billion people unbanked in the world, China accounts for about 224 million people. Our blog post on Financial Inclusion looked at how 21% of young adults aged 20-34 in the UK live with their parents. Massive Drop in Number of Unbanked, says New Report. On the other hand, Malta with a population of 0.49 million has the least banked people at 0.36 but a higher rate of 78.77%. In developed markets, it relates to preventing the exclusion of the most vulnerable parts of the population (eg. Even before the recent oil prices drop in 2014, there was another one in 1998 which had similar effects. In developing countries, 2.5 billion people are ‘unbanked’ and have to rely on cash or informal financial services which are typically unsafe, inconvenient and expensive. Rising demand for prepaid cards has been supported by the country’s high unbanked rural population. This means that for every unique user, there is an average of 1.523 connections. They are also less costly to maintain than traditional paper-based documents, which are more likely to be lost or damaged and require storing, continuous updating and are difficult to quickly navigate. This hardship may explain why Nigeria has such a high number of unbanked. China and India, despite having relatively high account ownership, claim large shares of the … But, like any aspect of culture, the population of banked consumers can vary significantly from country to country, and they do in Europe. Reliance on traditional application processes prevent underserved or unbanked populations who may not have formal identity documents from creating accounts, applying for loans or mortgages, or gaining access to other potentially life-changing opportunities. https://www.visualcapitalist.com/banking-unbanked-emerging-markets Nearly half can be found in seven countries: The unbanked. without an account, China has the world’s largest unbanked population, fol- lowed by India (190 million), Pakistan (100 million), and Indonesia (95 million) (map 2.1). The unbanked shopping experience. In the Philippines for example, only 34.5% of the population have a bank account, but for every person, there are 1.59 mobile phones and 67% of the population are active social media users displaying a clear disparity in the way data is being generated and how it is being used. Globally, 1.7 billion adults remain unbanked, yet two-thirds of them own a mobile phone that could help them access financial services. Where ‘unbanked’ customers usually have some form of identification, they often lack the documentation and credit records required by financial service providers to assess creditworthiness and perform consumer due diligence. Unbanked Africa: Ripe for a FinTech-led Future. Despite all of the technological advances we take for granted in our everyday lives, much of traditional banks’ customer onboarding process continues to be carried out manually and heavily relies on traditional data from credit bureaus when performing identity verification checks. Published by Statista Research Department , Apr 7, 2021. The small number of banks (just above 30) has also played a part in the high number of unbanked. Nigeria is the only African state on this list with about 62.7 million unbanked. The same can also be said about Indonesia – the world’s 7th largest economy – where only 48.9% of the population have a bank account, but there are 1.24 phone connections for every person (81.4% of the population own a mobile phone, when divided by 1.523) and 64% of the population have access to the internet. What makes Pakistan interesting is that a huge percentage (13%) of the people surveyed cited religion as the reason for being unbanked. For millions of people in the developed world, bank accounts are among the basic needs of life. (Bubble size corresponds to the estimated unbanked population in each country / region.) 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