Postal Financial Inclusion: Delivering the Missing Billion Accounts Luxembourg, 25 November 2009

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Postal Financial Inclusion: Delivering the Missing Billion Accounts

Luxembourg, 25 November 2009

Postal Financial Inclusion: Delivering the Missing Billion Accounts

Luxembourg, 25 November 2009


Low-income people visit post offices: more than a billion among the poor

Already many financial transactions Not accounted for in IMF and World Bank

financial statistics: 70 % of people excluded from formal finance

20 or 30 % likely to be using posts


Financial crisis: a need for trusted financial intermediation

Trust as a key asset of Posts Financial crisis: danger of heavy

dependence on foreign capital flows Posts as a key savings collection

infrastructure to enhance macroeconomic stability


UPU-AFI Workshop on Financial Inclusion and Postal Banking (9 and 10 November)

15 developing and emerging countries benefiting from information exchanges grants to share best practices and analyses

Inclusion and economic efficiency in the provision of financial services are compatible (« magic of the post »)


Evaluating « finance for all » policies and measuring its impact

A quasi-natural experiment: the « Banco Postal » case in Brazil

Taking advantage of the gradual opening of « Banco Postal » branches throughout the country


More than 40 % of municipalities without banks in 2002 => increasing transactions costs for the poor


2002: 2,450 BP agencies,822 agencies where no bank

or other correspondent

2003: 3,813 BP agencies,1,108 agencies where no bank






2006: 5,567 BP agencies,856 agencies where no bank




0

10

20

30

40

50

60

70

80

90

100

< 2

416

2416 to 3

031

3031 to 3752

3752 to 4367

4367 to 5096

5096 to 5890

5890 to 6794

6794 to 7937

7937 to 9237

9237 to 10690

10690 to 12463

12463 to 14294

14294 to 16672

16672 to 19279

19279 to 22815

22815 to 28164

28164 to 3

5612

35612 to 52082

52082 to 96515

> 9

6515

%

Correspondents

Bank agencies

P opulation

Banco P ostal

Semi-deciles of populationLeast populated Most populated


0

10

20

30

40

50

60

70

80

90

100

< 1

975

1975 to 2

236

2236 to 2

457

2457 to 2

686

2686 to 2

948

2948 to 3

266

3266 to 3

782

3782 to 4

413

4413 to 5

035

5035 to 5

657

5657 to 6

267

6267 to 6

846

6846 to 7

480

7480 to 8

139

8139 to 8

872

8872 to 9

889

9889 to 1

1249

11249 to 1

3484

13484 to 1

8296

> 1

8296

%

Correspondents

Bank agencies

P opulation

Banco P ostal

Semi-deciles of GDP per capita

Poorest Richest


Mobilizing savings• In the 50 % poorest municipalities• Less than 30 % of the total population• Half of the total savings accounts of Banco Postal

Access to microfinance and loans• In the 20 % poorest municipalities• 10 % of the total population• 25 % of all loans and micro-loans


Without BPwithin a municipality

With BPwithin a municipality:

average effect

◊ up to 163 new firms

◊ up to 1,209 new jobs

◊ up to 9 new banks for 100 municipalities

◊ up to 201 new firms (+ 23%)

◊ up to 1,381 new jobs (+ 14%)

◊ up to 14 new banks for 100 municipalities (+ 56%)

◊ Effects more likely if some degree of financial intermediation (1 to 5 banks before BP opening)

Documents

Postal Financial Inclusion: Delivering the Missing Billion Accounts Luxembourg, 25 November 2009