unbanked population by country

According to the latest research, every second adult in the world is unbanked. Our blog post on Financial Inclusion looked at how 21% of young adults aged 20-34 in the UK live with their parents. Published by Statista Research Department , Apr 7, 2021. 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%. Pakistan is an interesting case in terms of what the major reason is for not having a bank account. 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. 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. Share. Incumbent banks have also had to accommodate at least a 50% growth in the quantity of digital customer transactions and interactions. One simple integration; a flexible 360° solution which is scalable and secure. This high number is despite the fact that the number of unbanked people all around the world has decreased by at least 500 million in the past three years alone. Banks are constantly innovating to come up with new ways to reach more people. Currently, there are two billion people worldwide who cannot access financial services because their data is not held on ‘traditional’ sources. 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. Utilise a single element or multiple processes – it’s entirely up to you. Be the first to get latest updates, news, tips & guides. In fact, the World Bank reports that about 1.7 billion people all around the globe did not have access to bank accounts in 2017. With 70% Unbanked Population, Myanmar Bets on Fintech to Improve Financial Inclusion. In developed markets, it relates to preventing the exclusion of the most vulnerable parts of the population (eg. The country with the highest population in the world also has the highest population without access to bank accounts. On a global scale however, the numbers of people without readily accessible bills or statements is far higher. In high-income economies, almost all adults own an account — meaning the unbanked population can overwhelmingly be found in the developing world. 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. All maps, graphics, flags, photos and original descriptions © 2021 worldatlas.com, Countries With the Largest Populations Without Bank Accounts, Countries With The Largest Sikh Populations, Countries With The Largest Jain Populations, Countries With The Largest Roman Catholic Populations, Countries With The Largest Hindu Populations, The World’s Largest Oil Reserves By Country. Roughly 4.66 billion people around the world now use the internet – nearly 60% of the world’s total population, and 91% of these use mobile devices to go online at least some of the time. Interventions cannot always be added up simply to create the country opportunity, as the three interventions may overlap. Global Findex data is available for more than 140 countries around the world which make up 97% of the world's population. Thes are targetted specifically at the unbanked population of India. What makes Pakistan interesting is that a huge percentage (13%) of the people surveyed cited religion as the reason for being unbanked. More than 180 million people started to use social media between July and September 2020, equating to growth of almost 2 million new users every day. In 2020, commerce is customer centric. The unbanked. Interestingly, another Muslim dominated country on the list, Bangladesh, did not have as high a percentage of people who cited religious reasons. Although the Indian economy is growing, the reach of banks into rural areas remains difficult. These are, as such, often referred to as ‘thin-file’ customers. Rising demand for prepaid cards has been supported by the country’s high unbanked rural population. The Global Financial Inclusion Database provides 850+ country-level indicators of financial inclusion summarized for all adults and disaggregated by key demographic characteristics-gender, age, education, income, employment status and rural residence. One of the ways China is doing this is by increasing the number of financial institutions. 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. Of the global 1.7 billion people unbanked in the world, China accounts for about 224 million people. 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. However, WBG analysis discounts these overlaps for the Total Opportunity for each country, thereby the Total Opportunity may be less than the … Third on this list is Pakistan with a population of 99 million people without bank accounts. Nearly half can be found in seven countries: Of the global 1.7 billion people unbanked in the world, China accounts for about 224 million people. For millions of people in the developed world, bank accounts are among the basic needs of life. Even more staggering, only 36.9% of Mexico have a bank account, but in a country with the world’s 11th largest economy, 69% of the population have access to the internet and are active social media users. DUBLIN, April 16, 2021 /PRNewswire/ -- The "EEA Prepaid Card Market by Functional Attribute, Card Type, End User, and Application: Opportunity Analysis … Following the fall in the price of crude oil in recent times, a lot of banks were severely affected. Vietnam tells a similar story where only 30.8% of the population have a bank account, but there is almost a phone for every person and, again, 67% of the population are active social media users. 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. 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. In Argentina, for example, 51% of residents are unbanked, but 76% are active social media users, showing disparity between how data is being created and the data sources that are being used to provide consumers with basic needs. 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. 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. Eight years after, Nigeria is yet to achieve the desired financial inclusion target as over 40 million adult population are outside the country’s financial system. India, the second most populous country in the world, falls second on the list of countries without access to banks. A vast number of millennials do not have CRA data so if this source is used, they are rejected. Digital banks across Asia Pacific (APAC) enjoyed three times the growth in customer bases in 2020/2019, compared to traditional banks. Unbanked Africa: Ripe for a FinTech-led Future. But, even in Russia – the world’s 6th largest economy – more people own a smartphone than have a bank account. A lot of them, 1.7 billion, do not even have a bank account and are thereby unbanked. By Microsoft News Center 26 June, 2019. China and India, despite having relatively high account ownership, claim large shares of the … The InfoBrief highlighted that Indonesia’s unbanked population is expected to be cut by half to under 20% by 2025. The country with the highest population in the world also has the highest population without access to bank accounts. 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. Okafor Endurance Mar 30, 2021. That’s 2.3 billion adults. In 2014 that number was 2 billion. 2019 FDIC Survey. Book a demo today and see for yourself how powerful our suite of solutions are. Even before the recent oil prices drop in 2014, there was another one in 1998 which had similar effects. This statistic presents the distribution of unbanked population in from 2011 to 2017, by region. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers. The prepaid card market recorded a CAGR of 43.9% between 2014 and 2018 in terms of the number of cards in circulation – a trend that is anticipated to continue for at least five years. https://www.visualcapitalist.com/banking-unbanked-emerging-markets 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. 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. These ways include going to the bank itself, using an ATM, or other means if available. That means that every other person in the world lacks assets to services such as loans. This figure translates to about 13% of the total world’s population without access to banks. 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). More importantly, these alternatives enable remote account opening, lowering the operational costs for banks aiming to serve isolated consumers. Financial inclusion means that people have access to basic financial services like a savings account, credit and insurance . Here at Hello Soda, we’ve a comprehensive family of KYC and AML solutions all working together and delivered via a single API integration. Data is … Sixty-six percent of the country’s 260 million population are “unbanked” (don’t own a bank account). 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. The unbanked shopping experience. The small number of banks (just above 30) has also played a part in the high number of unbanked. In developing countries, it mainly involves delivering basic banking services to the low income people and the still unbanked, as a way out of poverty. How Nigeria can bank its unbanked population. Brazil: unbanked population 2019, by gender; Brazil: active debit cards 2011-2019; Brazil: active credit cards 2011-2019; Brazil: banking sector credit 2015-2018, by type of person 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. 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. This hardship may explain why Nigeria has such a high number of unbanked. Surveys done by the World Bank shows that most people do not have bank accounts because they feel that they do not have enough money. Since 2011, there have been about 1.2 billion unbanked people who have gained access to banks. … About 1.7 billion adults remain unbanked—without an account at a financial institution or through a mobile money provider. This figure translates to about 13% … While more than two-thirds of the adult population has access to banking and mobile money accounts, 1.7 billion adults remain unbanked. In China, 35% of women do not have accounts compared to 27% for men. November 25, 2019 by thiha. China and India, despite having relatively high account ownership, claim large shares of the global unbanked population because of their sheer size. (Bubble size corresponds to the estimated unbanked population in each country / region.) For example, China and Pakistan banks have come up with agreements that will ensure both countries increase access to banking services for more people. 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. Traditional “bricks and mortar” banking infrastructure struggles to make the business model work to serve low-income customers, particularly in rural areas. 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 There is a clear disparity between these ‘unbanked’ populations and those whose data is held online through the use of the internet and smart devices…. Traditional checks, such as using credit history mean that many good customers are turned away. 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 … Since the 2014 Findex, the percent of the global population that has a bank account with a financial institution or mobile money service rose from 62 percent to 69 percent. 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. However, for plenty of people in the developing world, this is not the case. 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. This means that for every unique user, there is an average of 1.523 connections. Nigeria is the only African state on this list with about 62.7 million unbanked. It is expected that … But, like any aspect of culture, the population of banked consumers can vary significantly from country to country, and they do in Europe. 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? 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. People expect that the banks will be fully operational all the time to ensure that the money is safe and accessible through whatever means the person may desire. Globally, 1.7 billion adults remain unbanked, yet two-thirds of them own a mobile phone that could help them access financial services. 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. 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. Share of banked population APAC 2020 by country or region. Country (or dependency) Population (2020) Yearly Change Net Change Density (P/Km²) … For example, paying government wages, pensions, and social benefits directly into accounts could bring formal financial services to up … 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. In 2012, there were an incredible 3,747 financial institutions. The previously mentioned global reasons lack of money and people deeming a bank account unnecessary apply. Digital technology could take advantage of existing cash transactions to bring people into the financial system, the report finds. Interestingly, the Reserve Bank of India began granting approval in 2016 for small finance banks. Unbanked population. 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. Because account ownership is nearly universal in high-income economies, virtually all unbanked adults live in developing economies, though there is a relatively high percentage of access to the internet. 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. Fortunately, China is making great strides in improving their banking sector. 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. About 191,000,000 people in India do not have bank accounts. 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. Take Hungary, for example, with a 75% banked population and the Czech Republic at 81%. The Global Findex database provides more than 200 indicators on topics such as account ownership, payments, saving, credit, and financial resilience. 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. Another common reason, especially among women, is that they feel a bank account is simply not necessary. 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. In 2017, 57 percent of the population in Sub-Saharan Africa did not have a bank account. 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. There are significant swathes of unbanked and underserved consumers. Country opportunities are calculated by segmenting unbanked financially active adults who can be reached through specific interventions. A few closed up while others are barely surviving. Covering more than 140 economies, the indicators of financial inclusion measure how people save, borrow, make payments and manage risk. 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. Southeast Asia alone has 650 million unbanked individuals. 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. Massive Drop in Number of Unbanked, says New Report. Even have a bank account unnecessary apply account opening, lowering the costs... Mobile money provider traditional “ bricks and mortar ” banking infrastructure struggles to make the business model work to isolated. Country in the world 's population accounts for about 224 million people without readily bills. % growth in the developing world population ( eg nigeria has such a number! Account ) be found in the world ’ s population without access to.... Transactions and interactions bring people into the financial system, the Reserve bank of began. 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