infographic: international funding for financial inclustion

1
FINANCIAL INCLUSION: International Funding Financial inclusion is a global priority for public and private funders. In 2012, at least $29 billion was committed by international funders to advance more inclusive financial systems in developing countries, according to CGAP's latest survey. The survey uses data from 22 international funders. Global commitments are estimated based on this sample and additional information from publicly available data from Symbiotics MIV Surveys. A global imperative Donor governments increased funding for financial inclusion by 16 percent from 2011 to 2012, despite strained public resources. Why does it matter? Financial inclusion is important for economic and social development and plays a role in reducing poverty. Funders and others seeking to reach the 2.5 billion unbanked will have to find innovative ways to attain the goal of financial inclusion. IT'S A FACT 2.5 billion adults – about half the world's adults – do not have access to formal financial services. Regional funding trends Regional funding priorities shifted over the past year with commitments to Sub-Saharan Africa exceeding those to Latin America and the Caribbean for the first time. Eastern Europe and Central Asia continued to get the most funding. The $15.9 billion included in this map is drawn from the 22 funders surveyed by CGAP rather than the total estimate of $29 billion. Four financial instruments The latest CGAP survey focused on four funding instruments used to support financial inclusion initiatives around the world. Debt financing continues to be the dominant instrument in terms of volume. World leaders are embracing financial inclusion at an accelerating pace. In order to meet the massive challenge of reaching the 2.5 billion global unbanked, stronger private sector engagement and leadership is critical. — Tilman Ehrbeck, CGAP CEO Latin America and Caribbean One in 10 adults save at a formal financial institution.* Eastern Europe and Central Asia 11 percent of adults use a formal account to get government payments.* South Asia 25 percent of women have bank accounts versus 41 percent of men.* East Asia and Pacific 9 percent got a loan from a formal financial institution versus 27 percent from family and friends.* Middle East and North Africa 31 percent get loans from family or a friend.* Advancing financial inclusion to improve the lives of the poor Public funding $18.5 billion 2011 2012 $21.5 billion $7.9 billion $8.0 billion +16% 2011 2012 +2% Private funding FUNDING COMMITMENTS Learn more at: www.cgap.org Credit: SwitchYard Media $4.7 BILLION $1.5 BILLION $2.7 BILLION $1.4 BILLION $3.4 BILLION $2.2 BILLION DEBT $10 $12 0 $2 $4 $6 $8 EQUITY GRANT GUARANTEE Total committed in billions 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012 Focus on Sub-Saharan Africa Despite overall strong economic growth, the region continues to have the highest poverty rate in the world with 48 percent of the people living on less than $1.25 a day (UN 2012). Financial systems in most countries remain poorly developed relative to other regions with only 24 percent of adults having an account at a formal financial institution which is half the global average. International funding to advance financial inclusion in the region almost tripled in the last six years to reach $2.7 billion in 2012.* *Source: Global Findex Data from 2011 *Data drawn from a subset of 18 funders.

Upload: cgap

Post on 29-Jan-2015

105 views

Category:

Economy & Finance


0 download

DESCRIPTION

In 2012, at least $29 billion was committed by international funders to advance more inclusive financial systems in developing countries. CGAP's latest funder survey estimates total global commitments based on survey data from 22 international funders and publicly available data from Symbiotics MIV Surveys.

TRANSCRIPT

Page 1: Infographic: International Funding for Financial Inclustion

FINANCIAL INCLUSION: International Funding Financial inclusion is a global priority for public and private funders. In 2012, at least $29 billion was committed by international funders to advance more inclusive financial systems in developing countries, according to CGAP's latest survey. The survey uses data from 22 international funders. Global commitments are estimated based on this sample and additional information from publicly available data from Symbiotics MIV Surveys.

A global imperativeDonor governments increased funding for financial inclusion by 16 percent from 2011 to 2012, despite strained public resources.

Why does it matter?

Financial inclusion is important for economic and social development and plays a role in reducing poverty. Funders and others seeking to reach the 2.5 billion unbanked will have to find innovative ways to attain the goal of financial inclusion.

IT'S A FACT2.5 billion adults – about half the world's adults – do not have access to formal

financial services.

Regional funding trendsRegional funding priorities shifted over the past year with commitments to Sub-Saharan Africa exceeding those to Latin America and the Caribbean for the first time. Eastern Europe and Central Asia continued to get the most funding. The $15.9 billion included in this map is drawn from the 22 funders surveyed by CGAP rather than the total estimate of $29 billion.

Four financial instrumentsThe latest CGAP survey focused on four funding instruments used to support financial inclusion initiatives around the world. Debt financing continues to be the dominant instrument in terms of volume.

“World leaders are embracing financial inclusion at an accelerating pace. In order to meet the massive challenge of reaching the 2.5 billion global unbanked,

stronger private sector engagement and leadership is critical.” — Tilman Ehrbeck, CGAP CEO

Latin America and CaribbeanOne in 10 adults save at a formal financial institution.*

Eastern Europe and Central Asia11 percent of adults use a formal account to get government payments.*

South Asia 25 percent of women have bank accounts versus 41 percent of men.*

East Asia and Pacific9 percent got a loan from a formal financial institution versus 27 percent from family and friends.*

Middle East and North Africa31 percent get loans from family or a friend.*

Advancing financial inclusion to improve the lives of the poor

Public funding

$18.5billion

2011 2012

$21.5billion

$7.9billion

$8.0billion

+16%

2011 2012

+2%

Private funding

F U N D I N G C O M M I T M E N T S

L e a r n m o r e a t : w w w . c g a p . o r g C r e d i t : S w i t c h Y a r d M e d i a

$4.7 B I L L I O N

$1.5 BI L L I O N

$2.7BILLION

$1.4 BILLION

$3.4BI L L I O N

$2.2BILLION

DEBT

$10

$12

0

$2

$4

$6

$8

EQUITY GRANT GUARANTEE

Tota

l com

mitt

ed in

bill

ions

2009

2010

2011

2012

2009

2010

2011

2012

2009

2010

2011

2012

2009

2010

2011

2012

Focus on Sub-Saharan AfricaDespite overall strong economic growth, the region continues to have the highest poverty rate in the world with 48 percent of the people living on less than $1.25 a day (UN 2012). Financial systems in most countries remain poorly developed relative to other regions with only 24 percent of adults having an account at a formal financial institution which is half the global average. International funding to advance financial inclusion in the region almost tripled in the last six years to reach $2.7 billion in 2012.**Source: Global Findex Data from 2011

*Data drawn from a subset of 18 funders.