Measuring access to financial services in Southern Africa

1
Measuring access to financial services in
Southern Africa

• Mark Napier
• FinMark Trust

28 October 2004
2
FinMark Trust

• Independent trust formed in April 2002
• Initial funding from UKs DFID
• Mission of Making Financial Markets Work for the
  Poor
• Facilitating and catalysing the next generation
  of development around access to financial services

3
The landscape of access
Transactions
Savings
Insurance
Credit
4
The access continuum
ACTIVE USAGE
USAGE
EFFECTIVE ACCESS
ACCESS
SKILLS INFRASTRUCTURE INFORMATION REGULATION
5
Is FinScope credible?

• Statistical Sample Frame Census 2001
• 2984 households interviewed in August 2003 by
  Research Surveys
• Cross-checks FinScope Other source
• Gini Co-efficient 60 59 (Pres 2000)
• Employment 11.04m 11.6(SSA
  3/03)
• Govt pensioners 1.9m 2.0m (DSD 2/03)
• Bank X client base Within 8 Actual
• Population 18 26.9m 27.0m (SSA2003)

The result for FinScope 2004
6
The landscape of access

• The 50-50 economy

Transactions
Any Bank Account? USA 90 Brazil 43 Kenya 6
100
80
60
48
40
20
Savings
Long term Insurance
42
49
0
57
SA 2003
Credit
7
The landscape of access

• Changing demography

Sources Genesis 2004, Finscope 2003
8
The landscape of access

• Changing demography

Sources Genesis 2004, Finscope 2003
9
The landscape of access

• Changing demography

Sources Genesis 2004, Finscope 2003
10
The landscape of access

• Changing demography

Sources Genesis 2004, Finscope 2003
11
The landscape of access

• Changing demography

Sources Genesis 2004, Finscope 2003
12
Looking deeper Swazilands full financial
services

• A bifurcated economy

Sources Genesis 2004, Finscope 2003
13
Deeper still the drivers of access in Swaziland

• Towards a toolkit for access?

Sources Genesis 2004, Finscope 2003
14
The access continuum
ACTIVE USAGE
USAGE
EFFECTIVE ACCESS
ACCESS
SKILLS INFRASTRUCTURE INFORMATION REGULATION
15
www.finmarktrust.org.za