Financial Inclusion Performance Index

Sergio Campillo

Why a Financial Inclusion

Performance Index?

Dimensions of FIPI

FIPI

Infrastructure

Depth of

financial sector

Account

ownership

Enabling

environment

Use of financial

services

Latin America

& Caribbean

High-income

OECD

Source: AFI staff estimates.

Financial Inclusion Performance Index

East Asia

and Pacific

Sub-Saharan

Africa

Automated Teller Machines (ATM’s)

(per 100,000 of adults)

Source: 2014 Global Findex Database.

Alliance for Financial Inclusion Analytics.

High-income

OECDLatin America

& Caribbean

4085

Source: 2014 Global Findex Database.

Alliance for Financial Inclusion Analytics.

High-income

OECDLatin America

& Caribbean

41159

Domestic Credit to Private Sector

(% GDP)

Source: 2014 Global Findex Database.

Alliance for Financial Inclusion Analytics.

High-income

OECD

Latin America

& Caribbean

3591

Account Ownership of Adults belonging to the Poorest 40%(% of adults)

Source: 2014 Global Findex Database.

Alliance for Financial Inclusion Analytics.

High-income

OECDLatin America

& Caribbean

1652

Saved at a Financial Institution

(% of adults)

Source: 2014 Global Findex Database.

Alliance for Financial Inclusion Analytics.

Latin America

& Caribbean

62

Credit Bureau Coverage

(% of adults)

Final Remarks

Assessment of financial inclusion policies faces challenges

regarding the set of indicators to monitor, as well as the

methodology that can be used to group them.

The FIPI is a tool that is intended to help policy makers to

identify and track progress on financial inclusion through 25

indicators.

One of the limitations of the Index is data periodicity, in the

case of demand side is every 3 years.

In LAC some barriers that prevent full financial citizenship

were identified: infrastructure, depth of financial sector,

account ownership and usage of financial services.

Título do slide

Bringing

smart

policies

to life

info@afi-global.org

www.afi-global.org

Thank you!

Annex

Source: Global Findex and

Alliance for Financial Inclusion Analytics.

Relationship between Account Ownership and Gross National Income

in LAC

GNI per Capita (USD)

Account

ow

ners

hip

(% o

f adult

s 15+) Guatemala

Honduras

Costa

Rica

Peru

Ecuador

Haiti

Mexico

Colombia

Jamaica

Nicaragua

El Salvador

BoliviaBelize Argentina

Dominican

Rep.

Uruguay

Chile

Brazil

Venezuela

Panama

*The size of the bubble

represents the population of

adults 15 years and older

Required Take-Up Rate to Reach Universal Financial

Inclusion in LAC by 2020

(million unbanked people)

212

2.5

times

Source: Alliance for Financial Inclusion staff estimates.

Unbanked Population in LAC

(million people)

Source: Alliance for Financial Inclusion staff estimates.

Country 2011 2014

(%) Change

2011-2014

Share in total

(%)

Argentina 21 16 -24 7

Belize 0.1 0.1 -13 0.1

Bolivia 5 4 -14 2

Brazil 65 48 -26 23

Chile 8 5 -35 2

Colombia 23 22 -8 10

Costa Rica 2 1 -26 1

Dominican Republic 4 3 -23 2

Ecuador 7 6 -11 3

El Salvador 4 3 -22 1

Guatemala 7 5 -19 3

Sum 145 114 -20 54

Total LAC 255 212 -17 100

Unbanked Population in LAC (cont.)

(million people)

Source: Alliance for Financial Inclusion staff estimates.

Country 2011 2014

(%) Change

2011-1014

Share in total

(%)

Haiti 5 6 10 3

Honduras 4 4 -7 2

Jamaica 1 0.4 -24 0.2

Mexico 61 54 -12 25

Nicaragua 3 3 -1 2

Panama 2 2 -21 1

Paraguay 3 3 -11 1

Peru 17 15 -7 7

Trinidad and Tobago 0.3 0.1 -49 0.1

Uruguay 2 1 -28 1

Venezuela 12 9 -20 4

Sum 110 98 -15 46

Total LAC 255 212 -17 100

Dimension Indicator Weight

(%)

1. Infrastructure

(per 100,000

adults)

ATMs

Bank branches

POS

Total

Each one

6.6

20

2. Depth of

financial sector

Domestic credit to private sector

Outstanding loans

Outstanding deposits

Deposit accounts

Borrowing accounts

Mobile money accounts

Total

Each one

3.3

20

% of

GDP

per 1,000

adults

Source: Financial Access Survey (IMF) and Global Financial Development Indicators (World Bank).

FIPI’s Dimensions and Indicators

Dimension Indicator Weight

(%)

3. Account at a

financial

institution

(% of adults 15+)

Adults

Women

Poorest 40%

Primary education

Young

Rural areas

Total

Each one

3.3

20

4. Use of financial

services

(% of adults 15+)

Used an account to receive wages

Used a debit card to make payments

Used a credit card to make payments

Saved at a financial institution

Borrowed from a financial institution

Outstanding mortgage

Sent remittances via a financial institution

Total

Each one

2.5

20

Source: Global Findex database.

FIPI’s Dimensions and Indicators

Dimension Indicator Weight

(%)

5. Enabling

environment

Credit bureau coverage (% of adults)

Depth of credit information index

Strength of legal rights index

Total

Each one

6.6

20

Total Sum (1+2+3+4+5) 100

FIPI’s Dimensions and Indicators

Source: Doing Business, World Bank.

The Financial Inclusion Performance Index (FIPI) is a measure of

achievements in key dimensions of financial inclusion and financial

sector development: Infrastructure, Depth of financial sector,

Account ownership, Use of financial services, and Enabling

Environment.

The FIPI is the average of the indices for each of the five dimensions:

FIPI = ( DI + DD + DA + DU + DE )

5

Actual value – Minimum value

Maximum value – Minimum value

* Maximum and minimum values are the highest and lowest numbers worldwide.

x 100Dimension

index )(=

Values of FIPI

The range of values of the FIPI is between 0 and 100. Higher values

represent a more developed financial inclusion environment, and

lower ones mean that certain challenges prevail in some

dimensions.

Categories of FIPI

Financial Inclusion

Development Stage Values

Very high level 75 and above

High level 50-74

Medium level 25-49

Low level Below 25

Dimensions of Financial Inclusion Performance Index

(values)

Infra-

structure

Depth of

Financial

sector

Account

ownership

Use of

financial

services

Enabling

environment

East Asia & Pacific 13 29 55 27 57

Europe & Central Asia 22 19 49 23 62

High-income OECD 38 29 91 57 64

Latin America and

Caribbean 17 16 38 19 61

Middle East 12 15 41 20 41

South Asia 6 10 31 10 44

Sub-Saharan Africa 4 9 19 14 44

Average* 12 16 39 19 51

Source: AFI staff estimates.

*Does not include high-income OECD countries.

Country

Used an

account to

receive wages

Used a debit

card

Used a credit

card

Saved at a

financial

institution

Argentina 18 25 24 4

Belize 8 6 7 22

Bolivia 10 11 5 24

Brazil 23 42 28 12

Chile 28 40 23 15

Colombia 15 18 12 12

Costa Rica 19 35 11 24

Dominican Republic 18 11 9 27

Ecuador 12 12 5 14

El Salvador 15 13 7 14

Guatemala 10 10 5 15

LAC (average) 14 19 12 16

High-income OECD 48 69 40 50

Use of Financial Services Indicators in LAC

(% of adults 15+)

Source: 2014 Global Findex database.

Country

Used an

account to

receive wages

Used a debit

card

Used a credit

card

Saved at a

financial

institution

Haiti 2 2 2 9

Honduras 6 9 5 15

Jamaica 13 25 10 30

Mexico 17 19 11 14

Nicaragua 8 5 2 8

Panama 15 18 8 20

Peru 12 12 10 12

Uruguay 16 22 36 12

Venezuela 16 46 19 23

LAC (average) 14 19 12 16

High-income OECD 48 69 40 50

Use of Financial Services Indicators in LAC

(% of adults 15+)

Source: 2014 Global Findex database.