The Global Findex database by World Bank: Data Links for Gender and Finance #2
Studying financial inclusion is important to address gender inequality in the financial realm. This post introduces The Global Findex Database, a database that measures financial inclusion.
What is financial inclusion?
Financial inclusion is the process of making formal financial services accessible and
affordable to all. It involves providing access to bank accounts for deposit and withdrawal of money, along with extension of micro-credit.
Why is it important?
Studies show that financial inclusion is pivotal to many aspects of development around the
world. It is proven to improve people’s earning potential because it leads to a more
systematic usage and saving pattern of money; it also provides the option to poor people to
expand their income by availing credit facilities. There is also a gender aspect to the increase in financial inclusion. Studies have shown improving access to formal financial services improves the wellbeing of female-headed households and increases their savings.
Where can you find data on financial inclusion?
To encourage research in the field, the World Bank has come up with The Global Findex
Database. The Global Findex Database is a collection and analysis of data conducted by the
World Bank on the borrowing, spending payments and risk management abilities of people. It has been started with support from the Bill and Melinda Gates foundation and has been calculated once in 3 years since 2011. It is primarily an indicator to analyze the extent of financial inclusion in the world with focus on the developing economies.
Slides
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