NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, August 22, 2016

Fnancial inclusion is vital in achieving inclusive sustainable growth and development as well as reducing poverty. Globally, about 2 billion people do not have a bank account but, Africa has been experiencing great advancements in financial inclusiveness. According to The World Bank, 34 percent of adults in sub-Saharan Africa had an account in 2014 compared to 24 percent in 2011. The African continent has been leading in the adoption of digital financial services as 12 percent of sub-Saharan Africans have a mobile money account, compared to 2 percent of the world population.

Important measures are been implemented to improve financial inclusion in Africa as a number of countries have committed to the Maya Declaration and the G20 financial inclusion action plan. Several countries have also developed national level financial inclusion plans.

In August, Brookings Institution released their 2016 Financial and Digital Inclusion Project report which explores 26 diverse emerging countries, globally, and their commitment towards improving financial inclusion. It uses four dimensions to evaluate these countries: country commitment, mobile capacity, regulatory environment, and the adoption of traditional and digital financial services.