of Morocco “Financial Inclusion” · No single, commonly accepted definition of financial inclusion Definitions usually cover several dimensions • Access • Use • Quality

Bank of Morocco – CEMLA – IFC Satellite Seminar at the ISI World Statistics Congress on “Financial Inclusion”

Marrakech, Morocco, 14 July 2017

Financial Access Survey (FAS): the IMF’s financial inclusion data1 Peter van Oudheusden,

International Monetary Fund (IMF)

1 This presentation was prepared for the meeting. The views expressed are those of the author and do not necessarily reflect the views of the BIS, the IFC or the central banks and other institutions represented at the meeting.

Reproductions of this material, or any parts of it, should refer to the IMF Statistics Department as the source. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board,

or IMF management

Financial Institutions DivisionIMF Statistics Department

Financial Access Survey (FAS):The IMF’s Financial Inclusion Data

Marrakech, July 14Bank Al-Maghrib – CEMLA – IFC Satellite Seminar on Financial Inclusion

By Peter van Oudheusden, IMF


2

No single, commonly accepted definition of financial inclusion

Definitions usually cover several dimensions

• Access • Use • Quality

IMF’s Financial Access Survey (FAS) provides data on access to and use of basic financial services by individuals and firms

financial inclusion is a multidimensional conceptFinancial Access Survey in a Nutshell (I)


3

the FAS is a database on financial inclusion with close-to-universal geographical coverage, which provides a strong monitoring basis

Financial Access Survey in a Nutshell (II)

FAS data are used to track developments in financial inclusion …

and they help provide policy insights.

Source: FAS and IMF staff calculations. 2015 or most recent available data.


4

Financial Access Survey in a Nutshell (III)

Administrative data … compiled by central banks and other regulators.

FAS methodology fosters international

comparability of data.

IMF staff

1. Collect2. validate,3. verify, and4. disseminate data.

Metadata capture country specific

cases.

the FAS is a supply-side database and data are collected annually


5

Use of Data: Mobile Money Developments (I)

FAS data capture the growing importance of mobile money services

310

30

49

64

pre2007

2007 2008 2009 2010 2011 2012 2013 2014 2015

cumulative number of economies that report mobile money data to FAS

African economies other economies

Source: FAS, GSMA (duration of mobile money services), and IMF staff calculations.

These services are increasingly becoming available …

50

147

357

34

132

260

0 100 200 300 400

up to 4 years

5-7 years

8 years or more

Years since launch of 1stmobile money services

number of registered mobile money agents per 100,000 adults

number of registered mobile money accounts per 1,000 adults

and gained significant traction when they are more established.


6

Use of Data: Mobile Money Developments (II)

mobile money services often complement traditional financial services

Source: FAS, GSMA (existence of mobile money services), and IMF staff calculations.

Presence of mobile money agents is especially pronounced in economies where traditional financial access points, like ATMS, are relatively scarce.


7

Use of Data: The Link With Central Bank Objectives (I)

0

2,500

5,000

7,500

10,000

12,500

0 2,500 5,000 7,500 10,000 12,500

aver

age

dep

osits

per

dep

osito

r in

US $

;m

ost r

ecen

t dat

a

average deposits per depositor in US $;5 years before

decrease in deposits per depositor

increase in deposits per depositor

Changes in deposit balances and loan sizes are non-uniform, potentially reflecting a deeper and more diversified financial system.

deposit and credit developments could be used to analyze the interplay between financial inclusion and financial stability

Source: FAS, IFS (exchange rate information), and IMF staff calculations.

0

12,000

24,000

36,000

48,000

60,000

0 12,000 24,000 36,000 48,000 60,000

aver

age

loan

per

bor

row

er in

US

$;m

ost r

ecen

t dat

a av

aila

ble

average loan per borrower in US $;5 years before

increase in loan size per borrower

decrease in loan size per borrower


8

Use of Data: The Link With Central Bank Objectives (II)

It is “easier” to expand credit when initial credit depth is low.

the FAS links monetary and financial statistics with changesin the underlying customers base

Source: FAS, IFS (exchange rate information), and IMF staff calculations.

0

20

40

60

80

100

0 20 40 60 80 100

loan

s as a

% o

f GD

P;m

ost r

ecen

t dat

a

loans as a % of GDP;5 years before

decline inloans (as % of GDP)

growth in loans (as % of GDP)


9

Use of Data: Complementarity with Other Databases

FAS data can provide additional insights when combined with complementary data collection initiatives

Source: FAS, Demirguc-Kunt et al. (2015) (Global Findex), and IMF staff calculations.

High ATM presence is associated with lower barriers to

account ownership …

and with higher use among account owners.


10

Use of Data: Time Dimension

historical data provide insights into availability of access points over time

60

80

100

120

140commercial bank branches per adult

(2004=100)

20

60

100

140

180ATMs per adult

(2004=100)

Economies that experienced the 2008-2009 crisis saw a reduction in access points in the post crisis-period.

Source: FAS, Laeven and Valencia (2015; for definition of crisis economies), and IMF staff calculations.


11

Challenges: Data Gaps

FAS database shows global data gaps in supply-side financial inclusion data

100%

66%

76%

56%

47%

81%

commercialbanks

credit unionsand financialcooperatives

other deposittakers (e.g.

buildingsocieties)

microfinanceinstitutions(deposittaking)

microfinanceinstitutions

(non-deposittaking)

insurancecorporations

Good coverage of basic information for the main

financial service providers …

but coverage is lower for more granular data.

15%

24%

48%

96%

of which: SME depositors

of which: household depositors

number of depositors

value of outstanding deposits

coverage of commercial bank data, 2011-2015(percentage of possible observations)

Source: FAS and IMF staff calculations.


12

FAS launch

Expanded breakdown of institutions

Started collection of more granular data

Added a module on mobile money

Started dissemination of data on a rolling basis

Gender pilot2009

2012

2016

2014

Challenges: Changes in User Needs (I)

the FAS continuously evolves to capture developments in financial services delivery and to address user needs


13

Challenges: Changes in User Needs (II)

36%

14%

50%

Availability of gender-disaggregated dataExample: depositors

22%

13%

6%

Commercialbanks

Deposittaking

microfinanceinstitutions

Mobilemoneyservice

providers

cases where more than 4 documents are required to

open an account

the FAS conducted a gender pilot in response to user needs

Source: FAS Pilot and IMF staff calculations.

In around half of the 28 participating economies, gender-disaggregated data was available.

Time and effort are needed to start collecting this type of data.

Pilot outcomes show a significant gender gap; around 40 percent of financial instruments are

owned by women.

Documentation requirements could contribute to this gap.


14

Questions?

Please visit http://imf.org/FAS for more information

Contact: [email protected]

Thank You

http://imf.org/FAS

mailto:[email protected]


15

Annex: features of administrative data (I)

Household Individual

Firm

bank •account•account


MFI •account

Household Individual

Firm


credit union •account

accountsaccount holders

account holders

(unique)

1. Across institutions

(e.g. lack of common identifier)

2. Within institutions

(e.g. systems are product based)

Other factors of relevance:

non-residents- captured in metadata

non-financial corporations (firms)- data for households separately

systems usually track products, not (unique) customers


16

0

400

800

1,200

1,600

2,000

2008 2009 2010 2011 2012 2013 2014 20150%

40%

80%

120%

160%

200%

mob

ile m

oney

acc

ount

s per

1,0

00

adul

ts(F

AS)

% o

f ad

ults

with

a m

obile

mon

ey

acco

unt

(Fin

anci

al In

clus

ion

Insig

hts)

[95%

con

fiden

ce in

terv

al]

registered

active

Annex: features of administrative data (II)

product data often capture market conditions

In Tanzania, users of mobile money services have multiple accounts at different service providers due to lack of interoperability.

Source: FAS and IMF staff calculations.

Documents

of Morocco “Financial Inclusion” · No single, commonly accepted definition of financial inclusion Definitions usually cover several dimensions • Access • Use • Quality