financial inclusion measurement for regulators: survey design and

Policy paper

Financial inclusion measurement for regulators:Survey design and implementation

Contents

Executive summary 01

1 Measuringfinancialaccess 03

2 Definingfinancialinclusion 04

2.1 Componentsoffinancialinclusion—whatisbeingmeasured? 04

2.2 Creatingmeasurablegoals–whatarethebenchmarksforsuccess? 05

3 Determining data needs 07

3.1 Usingdatatoaidpolicymaking 07

3.2 Whatpolicyquestionscandifferentsurveydesignsanswer? 08

3.3 Whatcanbegainedfromgatheringdatafromdifferentsources? 09

3.3.1 Supply-sidesurveys 09

3.3.2 Demand-side surveys 11

3.3.3 Keyattributesfordemand-sidesurveys 12

3.3.4 Combiningdata 15

3.4 Whatvariablesareneededtoanswerpolicyquestions? 15

4 Practical implementation 17

4.1 Takeaninventoryofexistingdatacollectioneffortsonbothdemand-andsupply-side 17

4.2 Consideruseofdatabystakeholders 17

4.3 Optionsforcreatingnewdatasets 18

4.3.1 Enhancementofexistingsurveys 18

4.3.2 Implementinganewsurvey 19

4.4 Increasingtheuseofsurveydata 19

4.5 Roleoftheregulator 20

5 Conclusion 21

References 22

Additionalresources 24

ThisreportwasdevelopedbyBankableFrontierAssociates, commissionedbytheAllianceforFinancialInclusion(AFI).February,2010.

Executive summary

1 Background Havingappropriateandup-todateinformationaboutlevelsandtrendsoffinancialinclusionisacritical

firststeptowardsdevisingrelevantpolicyapproachestofurtherdeepenthereachofthefinancialsector.Interestincollectingsuchdataisincreasingacrosstheglobe,resultinginthedevelopmentof anumberofcross-countryandcountry-specificdatacollectionstrategiesinrecentyears.

2 Objectives Thisreportaimstoinformfinancialpolicymakersandregulatorsonhowtodevelopastrategyfor

gatheringfinancialinclusiondatausingsurveysofdifferentkinds.Dependingonthefinancialresourcesandskillsavailable,aswellasstakeholderappetitefordata,thesestrategiescanrangefromsimplyleveragingalreadyavailabledatasets,tomodifyingexistingsurveystoincludenewquestionsonfinancialinclusion,oreventodesigningandimplementinganewfinancialsurvey.Inthisreport,weweightheadvantagesanddisadvantagesofeachapproach.

3 Structure Thisreportisorganizedtosystematicallytakethereaderthroughadecision-makingprocessto

determinetheappropriateresearchstrategy.Weshowhowfinancialinclusiondatacanbeused,whatsurveytechniquescanbeusedtocollectrelevantdata,andfinallyhowtobalanceinformationalneedswithresourceavailability.Afterabriefintroductionthatlaysoutthisprocess,section2focusesondevelopingacoherentdefinitionoffinancialinclusion,whichinfluencesbothdatacollectionandpolicydirection.Section3discusseshowdataneedsareassessedbydescribingthecoreelementsoffinancialaccesssurveys,withparticularfocusonthetypesofpolicy-relatedquestionsthatcanbeinformedbythisdata.Section4movesintothepracticalaspectsofimplementingadatacollectionstrategy,discussingtheactivities,costsandtradeoffsthatmustbeconsideredwhendevelopingaresearchstrategy.

4 Key insights • Thecoreelementsofdefiningfinancialinclusion,settingappropriatepoliciesandregulationsto

increase inclusion and designing data to monitor progress inherently work together.Definitions offinancialinclusionsetthebenchmarksagainstwhichpolicyisdevelopedandmonitoredaswellasprovidingtheguidelinesfordatacollectionwithwhichtoinformpolicy.Allthreeelementsrelyuponeachother,sobeingprecise,andrealistic,whendecideduponadefinitionoffinancialinclusionisimportant.

• Financial inclusion can be viewed through different lenses.Weofferfourexamplesoftheselenses,whichincreaseincomplexity:access,quality,usageandwelfare.Financialinclusionasdefinedbytheselensesgrowsincreasinglycomplexandhardertomeasureagainstbenchmarks,soestablishing adefinitionshouldtakeintoconsiderationtheresourcesavailablefordatacollection.

• Datacollectioncanvarysignificantlyintermsofdesign,sourceandquestionnairedesignand data needs should be assessed with respect to each.Sourcingdatafromfinancialinstitutions, i.e.supply-sidedata,canbecost-effective,butarenotabletorevealinformationabouttheclientexperienceandtheneedsofnon-consumersthathouseholdorindividuallevel,i.e.demand-side,surveyscanreveal.

• Differentpolicyquestionsdictatenotonlythespecificvariablestobecollectedbutalsoinfluencethe way in which data is collected.One-timecrosssectionsurveyscanbeeffectiveforprovidinginsightsonwhichsegmentsofthepopulationarefinancialexcluded,buttheyarenoteffectiveformonitoringorimpactifcollectedonlyonce.

AFI Policy paper |Financialinclusionmeasurementforregulators:Surveydesignandimplementation | 01

Executive summary continued

• The complexity of the policy and research objectives should drive the complexity and budget for the research design.Simplerquestionsoffinancialinclusion,e.g.thosedealingwithaccess,requirelessrobustdataforsufficientanalysisandthereforemaynotjustifycomplexandcostlysurveys.Ontheotherhand,moredifficultsurveyquestions,suchasthoserelatingtoimpact, requiremoreinvestmenttodeliverappropriateresults.

5 Practical recommendations • Thereareseveralwaystoimprovedataavailabilityforfinancialinclusion.Beforeanynewsurvey

effortsareinitiated,werecommendanalyzingallavailabledata,bothfromsupply-sideand demand-sidesources.Thisservesthepurposeofnotonlyhighlightingthegapsthatneedtobefilled,buttheinventorycanalsobeusedtomakethecasetopushafinancialinclusionagendaforward.Thedecisionofhowtocollectfurtherdata,orwhethermoredatacollectioniswarrantedatall,involvesatrade-offbetweenresourceconstraints,thesizeoftheinformationgaptobefilledand thedata-drivenneedsofstakeholders.

• Inadditiontotheirownneeds,financialregulatorsshouldconsiderhowinclusiondatafromsurveys might also be used by different stakeholders and design an appropriate engagement and dissemination approach in order to maximize the value of their data-collection effort. Otherindustryplayersmayfindthedatausefulinmotivatingchangestotheirownapproaches.

02 | AFI Policy paper |Financialinclusionmeasurementforregulators:Surveydesignandimplementation

1 Measuringfinancialaccess

Financialdevelopmentisbecomingincreasinglyimportantwithindevelopmentagendasglobally.Forsometime,thishasincludedfinancialdeepening—i.e.theexpansionofcreditandfinancialflowsrelativetoGDP—whichhasbeenshowntohaveastronglinktoeconomicgrowth.1Morerecently,attentionhasbecomefocusedonfinancial inclusion—thepercentageofthepopulationwithaccesstoformalfinancialservices—whichhasbeenshowntoasaneffectivetoolagainstpovertyalleviation.2

Increasingly,policymakersandregulatorsarerecognizingtheneedtodevelopevidence-basedapproachestoidentifyandpromotedriverstoexpeditenation-wideintegrationintoformalfinancialsystems.Creatingappropriatedatasetswhichaccuratelyelucidatethestateoffinancialinclusioncanaidpolicymakingbyhelpingto“focus the attention of policymakers and allow them to track and evaluate efforts to broaden access”(BeckandDemirgüç-Kunt(2008),p.393).Anumberofcountrieshavebeguntoassessandimplementtheirowndatacollectioneffortstosupportthisneed.InthewordsofapresentationgivenbyarepresentativefromMexico’sComisiónNacionalBancaraydeValores(CNBV)atthe2009AFIGlobalPolicyForum,3 “…countries which wish to promote financial inclusion must first define the concept and then measure and monitor it over time.”

Exactlyhowtocreatethedatato“measureandmonitor”financialinclusionisnotstraightforward.Surveysappropriateforgeneratingsuchdatasetsrequirebothskillstomanageandadequatefundingtoundertake.JudgingbythepopularityoftheGlobalStateofFinancialInclusionsessionatthe2009 AFI Global Policy Forum,4policymakersappeareagertoobtainthetoolswithwhichtodeterminethemosteffectivemechanismforgatheringinformation.

Thispaperaimstoinformfinancialpolicymakersandregulatorsonhowfinancialinclusiondatacanbecollectedtoprovideameansofmonitoringandpromotingfinancialinclusion.Specifically,wedescribeaframeworkfordevelopingadatacollectionstrategy,whichinvolves:

• developingameasurabledefinitionoffinancialinclusion;

• determiningdataneedswithregardstodevelopingappropriateandrelevantpolicy;and

• implementingaplantogatherdatainthemostcost-effectiveandefficientmanner.

ThisprocessisdescribedinFigure1belowandthispaperfollowsthisprogression.Thebulkofthepaperwilldescribethevarioussteps,payingparticularattentiontohowdatadevelopmentlookstoinformdecisionsconsideredbypolicymakersandregulators.Whileitisourhopethat,afterreadingthispaper,policymakerswillfeelconfidentlyarmedwiththeappropriatetoolstodeviseevidence-basedsolutionstohelpincreaselevelsoffinancialinclusion,itmustbeemphasizedatthestartthatthereisnotone“correct”strategythatcanbeuniversallyappliedtoallsituations.Therefore,thefocusofthispaperwillbeonenhancingthereaders’abilitytomakeinformeddecisionsabouthowbesttogatherthemostsuitabledatatoaskandanswerthequestionsmostrelevanttotheirrespectivenationalcontext.

Figure1:Decisionmakingprocess

1 See,forexample,KingandLevine(1993),Beck,Demirgüç-KuntandLevine(2007),andGinéandTownsend(2004).2 SeeBurgessandPande(2005),Beck,LevineandLevkov(2007)andBruhnandLove(2009),whicharediscussedinmoredetailinsection3.2.3 PresentationsgivenattheAFIGlobalPolicyForumcanbefoundonhttp://www.afi-global.net/gpf09/agenda.htm.4 ThissessionwasratedthethirdmostpopularaccordingtoapolltakenbyAFI.

Principle implementation

•Takeinventoryof existingdatasets

•Enhanceexistingsurveys tofulfillcurrentdata needsand/or

•Createanewsurvey

Definedataneeds

•Identifythepolicy questionsthatthedata shouldbeabletoanswer

•Developahighlevelplan tocapturedatatoanswer thosequestions

Definefinancialinclusion

•Derterminethedepthof deffinitiontouseasa benchmark

•Includespecificand measurablelanguage


2 Definingfinancialinclusion

Anevidence-basedapproachtopolicymaking,guidedbyathoughtful and focuseddatacollectionstrategy,iscriticaltoensureefficientuseofresourcestowardsdeliveringresultswithimpact.Developingacontextuallyrelevantdefinitionoffinancialinclusionupfrontcanprovidehelpful directionnotonlybyguidingwhatvariablestomeasure,butalsobyidentifyingthebenchmarks againstwhichsuccessorfailureismeasured.Howfinancialinclusionisdefinedisthereforelikelytoinfluencethenatureofthestudyundertaken.

2.1 Componentsoffinancialinclusion—whatisbeingmeasured? Financialinclusionbyitselfisamulti-facetedconceptwithanumberofnuancedcomponents,allor

someofwhichmayberelevanttothespecificcountryagenda.Belowweofferexamplesoffourcommonlyusedlensesthroughwhichfinancialinclusioncanbedefined,inorderofcomplexity:

I Access–Thiscomponentisconcernedprimarilywiththeability to use availablefinancialservicesandproductsfromformalinstitutions.Understandinglevelsofaccessmaythereforerequireinsightandanalysisofpotentialbarrierstoopeningandusingabankaccountforanypurpose,suchascostandphysicalproximityofbankservicepoints(branches,ATMs,etc).Averybasicproxyforaccesscanbederivedthroughcountingthenumberofopenaccountsacrossfinancialinstitutionsandestimatingtheproportionofthepopulationwithanaccount.Dataonaccesscanusuallybeobtainedthroughinformationprovidedbyfinancialinstitutions.

II Quality–Asameasureoftherelevanceofthefinancialserviceorproducttothelifestyleneedsoftheconsumer,qualityencompassestheexperienceoftheconsumer,demonstratedinattitudesandopinionstowardsthoseproductsthatarecurrentlyavailabletothem.Themeasureofqualitywouldthereforebeusedtogaugethenatureanddepthoftherelationshipbetweenthefinancialserviceproviderandtheconsumeraswellasthechoicesavailableandtheirlevelsofunderstandingofthosechoicesandtheirimplications.

III Usage–Concernedwithmorethanbasicadoptionofbankingservices,usagefocusesmoreonthepermanence and depthoffinancialservice/productuse.Inotherwords,determiningusagerequiresmoredetailsabouttheregularity,frequencyanddurationofuseovertime.Usagealsoinvolvesmeasuringwhatcombinationoffinancialproductsisusedbyanyonepersonorhousehold.

IV Welfare–Themostdifficultoutcometomeasureistheimpactthatafinancialdeviceorservicehashadonthelivesofconsumers,includingchangesinconsumption,businessactivityandwellness.Distinguishingtheroleoffinancialservicesonthepeople’slives,withoutmistakingitforanotherconcurrentfactor,suchasincreasedincome,requiresacertainresearchdesign,discussedinsection3.1.Inordertoacquireinformationonquality,usageandwelfare,itiscriticaltohaveinformationfromtheuser’spointofview,i.e.datagatheredthroughademand-sidesurvey.

5 Practicallyspeaking,definitionswithincreasedcomplexityrequireanalysiswithheightenedrigor.Itisthereforeadvisabletoconsiderthelevelofavailableresourcesandskillstoguidedecisionsaboutthecomplexityofthefinancialinclusionbenchmark.

6 In2003,FinScope(www.finscope.com)foundthat88%ofhouseholdsinSwazilandareseenasexcludedbasedonthecostsassociatedwithtransactionaccounts).7 Kempson,etal.(2000),forexampledescribealistofpotentialbarrierstoinclusionwhichincludegeographicaccess,riskassessmentsoflow-incomecustomers,

prohibitivelyhighproductcosts,etc.8 Seesection4.1whichdiscussesconcernsassociatedwiththesemeasures.9 See,forexample,Kempson,et.al(2000),whicharguesthatthemajorityofcurrentaccountsinBritainareinappropriatefortheneedsoflow-incomeindividuals.


Abilitytouseformalfinancial services,i.e.minimalbarriers toopeninganaccount

• Physicalproximity

• Affordability

Figure2:Possiblelensestomeasurefinancialinclusion

2.2 Creatingmeasurablegoals–whatarethebenchmarksforsuccess? Transformingpolicyobjectivesintoclearandobjectivelymeasurablestandardsisacriticalstepto

designingaresearchstrategy.Indoingso,itisessentialtoinvolvespecificandmeasurablelanguage,soastoprovideclearguidanceintermsofdatapointstotrackandgoalsagainstwhichtogaugeperformance.Toexemplifythispoint,wecomparetheUNVisionofInclusiveFinance,10whichespouseshigh-levelidealsoffinancialinclusion,withtheSouthAfricanFinancialSectorCharter’s11moreprecisedefinitionof“effectiveaccess.”

TheUNVision’shigh-levelstandards,whilecomprehensive,aredifficulttomeasure.Forexample,suchwordsas“reasonable”and“appropriate”arepronetomultipleandsubjectiveinterpretations.Furthermore,suchstandardsdonotprovideaclearpathformeasurement.Ontheotherhand,theSouthAfricanCharter’sspecificitywithrespecttogeographicalaccessbetterservesthepurposeofmeasurement,astheCharternotonlypaintsaclearpictureofakeydimensionoftheideal(effectiveaccess),butalsodefinesitinawaythatsupportsmeasurementandmonitoring(e.g.20kmsdistancetothenearestservicepoint).Itfurthermoredefinesthetargetgrouptobeservedinspecifictermsincurrencyinthelocalmarket.

Itisinstructivetonoticethat,whilethegoalsoftheSouthAfricanCharterareclearandmeasurable,theyarelimitedtodefiningfinancialinclusionbyaccess—definitionsbeingexploredinothercountriesareimplicitlymeasuringquality,usageandwelfare.InapresentationgivenattheAFI2009GeneralPolicyForuminNairobi,Mexico’sComisiónNacionalBancaraydeValores(CNBV)clearlysuggestedthatthedefinitionoffinancialinclusionshouldincludenotonlyaccessbutalsouseoffinancialservices.ThismoreambitiousdefinitionoftheCNBVwouldrequiredatanotonlyfromfinancialinstitutionsbutalsofromusersoffinancialservicesthemselves.ApresentationgivenbytheBankofThailandsuggestedanevenmoreambitiousdefinition,whichincludedcapturinganimprovementinwellbeingresultingfromfinancialaccess,literacyandconsumerprotection.Currently,theavailabledataisnotabletomeasureprogressbasedonthisdefinitionbut,havingreachedmoreclarityonitsexactgoals,theBankofThailandhasaclearroadmapofwhatneedstobedonetogatherthenecessarydata.13

10 Availableat:http://www.uncdf.org/english/microfinance/index.php11 Availableat:www.fscharter.co.za/12 LSM1-5aremarketsegmentationmeasuresinwidespreadusagetodenotehouseholdswithspecificlow-incomecharacteristics.

Actualusageoffinancialservices/products

• Regularity

• Frequency

• Lengthoftimeused

• Productattributesmatchtheneedsofcustomers

• Productdevelopment considerstheneeds ofcustomers

Effectonthelivelihoods ofthecustomers

• Welfare/consumption

• Personal/business productivity

Financialinclusion

2 Defining financial inclusion continued


Thedepthandextentofafinancialinclusiondefinitionistheresultof,amongotherfactors,thefinancialresourcesandskillsavailableforthedatarequirementsinherentinthisdefinition.TheprogressionwithinFigure2suggeststhedegreeofdifficultyofmeasurement,andhencetheamount ofresourcesnecessary,ofeachlens.Asthenextsectionwillreveal,measuringaccessmaybeaccomplishedrelativelyeasilywithdatafrominstitutions,whichmayalreadybeinhandwithintheregulatoryagency,whilemeasuringimpactonwellbeingrequiresspecificsamplingtechniquesandrepeatedsurveysofindividualsand/orhouseholds.

Withaviewtosignificantlyincreaseoutreach…eachdevelopingcountryshouldhaveacontinuum offinancialinstitutionsthat…wouldbecharacterizedby:

a accessatareasonable cost of all households and enterprises totherangeoffinancialservicesforwhichtheyare“bankable,”includingsavings,credit,leasingandfactoring,mortgages,insurance,pensions,payments and local andinternationaltransfers;…

Effective Access means:

a Beingwithinadistanceof20kmstothenearestservicepointatwhichfirst-order retail finance servicescanbeundertaken,andincludesATMandotheroriginationpoints…

b Beingwithinadistanceof20kmtothenearestaccessibledeviceatwhichanelectronic(otherthanATM)servicecanbeundertaken

c Asufficientlywiderangeoffirst-order retail financial products and services…whichareaimedatandare appropriate for individuals who fall into the All Media Product Survey (AMPS) categories of LSM 1-5…

Firstorderretailproductsandservicesmeans:

a Transactionproductsandservices…fordaytodaypurposes

b Savingproductsandservices

c Creditforlow-incomehousing(definitionprovided)

d Insuranceproductsandservices

South Africa charter

UNCDF-Visionofinclusivefinance

13 PresentationsgivenattheAFIGlobalPolicyForumcanbefoundonhttp://www.afi-global.net/gpf09/agenda.htm.

2 Defining financial inclusion continued


Withacleardefinitionoffinancialinclusioninhand,thenextstepistounderstandthedesign,sourcesofinformationandvariablesneededtocollecttodevelopandmonitorpoliciestoincreasefinancialinclusion.Althoughitisenticingtorushimmediatelytothesurveydesignstage,itisextremelyusefultofirstclearlydefinewhatthedatawillbeusedfor,whichultimatelyhelpsensurethatthedatathatiscollectedcanaddressthequestionsathand.

3.1 Using data to aid policymaking Ultimately,thepolicyobjectivespursuedwilltiecloselytothedefinitionoffinancialinclusionadopted,

aswellasthedatathatiscollected.Ataveryhighlevel,therearetwoprimaryobjectivesforwhichdatacanbeusedtosupportpolicymaking:

I Diagnosingthestateoffinancialinclusiontohelpdeveloppolicysolutions

II Monitoringthegrowthoffinancialinclusiontoaccordinglymodifyorcreatenewpolicyreforms

Figure3:Sequenceofdatausageinpolicymakingprocess

AsFigure3aboveshows,appropriatedatacantellusifthereisaproblemthatneedstoberesolved,aswellasmonitoringwhetheritinfactdoesgetresolved.Forexample,inthediagnosis,wemayfindthatcertainpartsofthepopulationaresystematicallyexcludedfromthefinancialsector.Orwemayfindthatcertainpartsofthepopulationareover-indebted.Thecorrectpolicyresponsewillnotonlyrespondwithsolutionsbutwillbeabletoprioritizethesolutions.Onewayofprioritizingwouldbebasedonthevulnerabilityofthepopulationaffected,forexample.Anotherwouldbebasedontheeaseorexpenseofimplementationrelativetothesizeofthepopulationreachedortheseverityoftheproblem.Oncepolicyisimplemented,datacontinuestoplayaroleinmonitoringitseffectiveness.Thiscanbeassimplytrackingthelevelofinclusionovertime,oritmaybedonebydeterminingthemeasurableimpactfromapolicydecisionagainstthecostofitsimplementation.Thismonitoringfunctionthenprovidesakeycomponentofthefeedbackloopintheprocessofrefiningorre-definingpolicyreforms.

Diagnosis

•Develophypotheses aboutwhatiscausing gapsinfinancialaccess

•Identifypopulationsegmentsparticularlyvulnerabletofinancialexclusion

Policy/regulatory reform

•Respondtohypotheses withappropriatepolicy/regulatory solutions.

•Considerprioritizingreformsbasedonpotentialforimpactandeaseofimplementation

Monitor

• Gauge level of improvementinfinancialinclusionnumbers

•Evaluaterelationshipbetweenpolicyandchangeinlevelsoffinancialinclusion

•Measureimpact

3 Determining data needs


3 Determining data needs continued

3.2 Whatpolicyquestionscandifferentsurveydesignsanswer? Broadlyspeaking,surveydesigndescribesthetypeofsamplingusedandwhethersurveysarerepeated.

Surveydesignsdependonthenatureofissuesbeinginvestigated.Weenvisionthreedifferent,thoughnotnecessarilyprogressive,categoriesofquestionswhichcanbeansweredusingsurveydesignsofdifferinglevelsofcomplexity.

Eventhemorebasicdesign(e.g.aone-timecross-sectionalviewoffinancialinclusion)canhelpestablishagreatdealofunderstanding.Forexample,asshowninTable1,thefirstcategoryofquestionscanbeusedtohelpsetthedirectionandprioritiesforregulationbysimplyestablishingthecurrentstatusoffinancialinclusion,e.g.whatpartsofthepopulationareunbanked,ordonothaveaccesstocredit.Inotherwords,thishelpsthe“diagnosis”partofFigure3.Includingbasicquestionsthatquerytheexperiencesandknowledgeofconsumerscanhelpdirectattentiontowardspossibleregulationsthatmightberequiredtoprovidesufficientconsumerprotection.Forexample,onecentralbankerinKenyafoundtheFinAccesssurvey,whichatthetimewasaone-timecrosssection,extremelyhelpful,since“Once we have information on the landscape it becomes much, much easier to chart policy. When we were approving M-Pesa for instance … we became more systematic. We could say, ok, let’s protect consumers but let’s go ahead.”(BankableFrontierAssociates(2009b),p.21).Onetimecrosssectionscanalsoprovidesomeinitialunderstandingofwhyconsumersmightlackaccess–perhapsfinancialinstitutionsaretoofaraway,orunfriendly,ordonotworkwithilliteratepeople.

Category2questionscanhelpaddresssomeaspectsofthe“monitoring”partofFigure3.Thesequestionsrequireadditionaldatathatcanbeaccessedacrosstwoadditionaldimensions:timeandspace.Atanationallevel,itispossibletosetinternalbenchmarksoffofpastperformanceinordertomeasureprogressandcontinuetomaintainfocusontheissueoffinancialinclusion.14Goalssuchasmeasuringimprovementsinfinancialinclusion,financialliteracyorbetterconsumerprotectionwouldbeundertakenbysuchdesigns.Thiswouldrequirewhatiscalled“repeatedcrosssections,”orsimplyperiodicrepeatsof“category1”surveys.

Comparisonstoothersimilarcountriescanalsobeextremelyusefulinsettingbenchmarksandestablishingprogress.Forexample,onememberoftheFinancialSectorDevelopmentProgrammesteeringcommitteeattheBankofZambia,foundthebenchmarkingdataofFinScopeextremelyuseful,as “It gives us the stark reality of how well or poor Zambia is doing compared to other markets.” (BankableFrontierAssociates(2009b)p.19).Whatisrequiredhereissimplyformulatingquestionsinawaythatiscomparabletootherfinancialaccesssurveys.

Finally,category3questionsrequiresurveysthataredesignedtomeasureimpactoffinancialinclusion.Thisisthemostchallengingpurposeforwhichtocollectdata,asitoftenentailsspecificandoftencomplexsamplingconsiderations.However,ifdonecorrectly,theresultscanbepowerful.BurgessandPande(2005),forexample,showedthatanexplicitpolicyforcingbankstoextendbranchesintoruralunbankedlocationsinIndia,viadepositmobilizationandcreditdisbursement,significantlyreducedruralpoverty.Additionally,Beck,LevineandLevkov(2007)usedtheCurrentPopulationSurveyintheU.S.,complementedwithstateleveldata,toexploitdifferencesinliberalizingregulatoryrestrictionsonintra-statebranchingtoshowthatderegulationloweredincomeinequalitybyreducingearningsgaps.

Tomeasuretheimpactofpoliciesmoreisneededthansimplyaskingtherightquestions.Inordertodistinguishtheimpactofthefinancialaccesspolicyfromanythingelseaffectingthelivesofthetargetpopulation,oneneedssurveyscollectedovertimeaswellasacontrolgroupwhichisnotaffectedbythepolicy.Moreover,thecontrolgroupneedstobeassimilaraspossibletothegroupaffectedbythepolicy.Thisusuallymeanstakingadvantageofwhatiscalleda“naturalexperiment,”i.e.policiesorregulationsbeingimplementedononegroupthatisdistinctbutsimilartoacontrolgroup.Inboththepapersdiscussedabove,differencesinimplementationsofpoliciesatstatelevelwereusedtoestablishimpact.

14 AswasdeterminedduringarecentreviewofFinScope’seffectiveness,itoftentakestimetoworktheadoptionofdataintoregularlyfunctioninginformation structures.Timeisalsoneededtodeveloptrustandunderstandingtofullyappreciatethebenefitsofincreasedmarket-leveldata(BankableFrontierAssociates, 2009b,p.31-32).


Data designed to measure impact

Table1:Questionsansweredbydatadesigns

15 Honohan(2005)arguesthatanydatacollectionexercisemuststrivetounderstandboththesupplyanddemand-sideoffinancialservices.

Category

1. Basic questions that help define aspects of thefinanciallandscape

2. Comparative questionsacross time and countries

3. Impact questions

Questions they may ask of the data

Whichpopulationsegmentlackswhattypeoffinancialservices?

Whydotheylackaccess?

Howmuchusetakesplacefrominformal /unregulatedservices?

Whatistheevidenceofconsumerabuse?

HowdoIcomparetowhatIconsidertobemypeergroup?(byregional or level of income)

WhattargetsshouldIsetforaccesswhichIcanmeasurecredibly?

Isinclusionandprotectionimprovingovertime?

Impactofthepolicyonfinancialinclusion?

Welfareimpactofexpandingfinancialinclusiononthetargetpopulation?

Decisions theymaytake,based on the data

-Targetedregulation

-Furtherresearch /deepersurvey

-Begintoidentifybarrierstoformulatepolicy

-Begintoidentify atriskconsumers

-Targetedregulation

-Whetheranyreformoractionisrequired

-Choiceoftargets

-Targetedregulation

-Expansion/modification of regulation

-Expansion/modification ofpolicy

One-time crosssection

Internationally comparable data

Datacollected over time

x

x

x

x

3.3 What can be gained from gathering data from different sources? Financialinclusiondatamaybedistinguishedbasedondatasource,namely:supply-side(collectedfrom

financialinstitutionsorotherproviders)anddemand-side(householdorindividuallevelstudiesoftheconsumer).Bothplayimportantrolesinmeasuringfinancialinclusion,15buteachhasdifferentbenefitsandcostswhichmustbeconsideredintheoveralldatacollectionstrategy.

3.3.1.Supply-side surveys Supply-sidesurveystypicallycaptureinformation,suchasnumberofaccountsandproduct

specifications,fromfinancialservicesproviders,inordertoestimatethepercentageofthepopulationthatusesfinancialservices.Moreover,financialserviceproviderscouldbeaskedtoreportontheirphysicaloutreach,specificallyonthenumberofbranches,ATMs,etc.,which,ifcombinedwithpopulationdata,canbeusedasaproxyfordeterminingthelevelofaccesstofinancialservices.


x

x

x

x

x x

x

x x


Kumaretal(2005)setouttoassessthelevelofaccesstofinancialservicesinBrazil.Inordertodoso,aWorldBankteamcollectedanumberofdifferentsupply-sideanddemand-sidemeasures.First,informationwasgatheredaboutthepresenceandspreadoffinancialinstitutionsorservicepoints(e.g.branches,ATMs,etc)inthe1990s.Asshownbelow,thenumberofbanksdecreasedfrom267in1993to194in2002,andthenumberofbankbranchesreducedfrom17,400in1994to16,000in1998,reflectingrecentreformpolicies,includingstricterprudentialregulationsonentryandoperation.However,duringthesametimeperiod,therewasasurgeinthenumberofATMsfrom3,500to22,500,andarapidexpansionofmicrofinanceinstitutions(MFIs)fromalowbase–bothfactorswhichcounteredthenotionthatbankingservicesweremadelessavailable.Inparticular,thestudydrewattentiontotherapidincreaseinbankcorrespondentsasanewchanneltoserveremoteareassuchthat,despitedecliningnumbersofbranches,Brazilhadnonethelessachievedthenormofhavingafinancialtouchpointineverymunicipality.

Forexample,Beck,Demirgüç-KuntandMartinezPeria(2007)usedtwodifferentsupply-sideindicatorstodeterminetheleveloffinancialaccessin99countries.Specifically,theyusedinformationonthenumberofbranchesandATMspercapita/squarekilometertoestimatefinancialaccess,arguingthatsuchanindicatorshedlightonthelevelofopportunityahouseholdorenterprisehastoengageafinancialserviceprovider.TheyalsocollectedinformationonthenumberandsizeofdepositandloanamountsrelativetopopulationandGDPpercapitatodetermineuseofsuchservices.TheWorldBank(2008)publishedseparatereportsondatadrawnfrom50+countriesoncostsassociatedwithopeningaccountsandlocationofbankservicetouchpointstoidentifypotentialbarrierstofinancialaccess.Inthesamevein,Honohan(2005),putforwardthattheimpactofpotentialpricebarriers(determinedbycostofproductsandservices),informationbarriers(determinedbylevelofinformationaboutactualcreditriskofunbankedpopulations),andproduct and service designbarriers(judgedonthesuitabilityofproductsandservicestotheneedsofthepoor),canbeinformedbysupply-sidedata.

Mostoftheprogresstodateinbuildingcross-countrydatasetshasbeenonthesupplyside,largelybecausethisdatatendstobealreadyavailablefrommostregulators.CGAP,forinstance,hasundertakenoneofthemostwide-reachingefforts,collectingannualdatafromapproximately130countryregulatorsaboutbankingactivityandothermatters.16In2009,theIMFalsoannouncedanefforttoincludeeightfinancialinclusivenessindicatorscollectedfromregulatorsinitsannualInternationalFinancialStatisticspublicationswhichcoverroughly190countries.17

Practicallyspeaking,supply-sidedatamaybetheeasiestandleastexpensivewaytocollectfinancialaccessdataasbankregulatorsorcentralbanksmayalreadybecollectingthisdatafromfinancialinstitutions.Ifthisisthecase,aggregationcouldbetheonlyactivityrequired.Inothercases,existingreportingrequirementsmayneedtobemodifiedtoincludemorerelevantordisaggregateddataneededforfinancialinclusionmeasurement.

Box1:AccesstofinancialservicesinBrazil,WorldBank(2005)

16 Thelatestresultsaredueforpublicationbythefourthquarterof2009.17 The8indicatorswilltrackthenumberofallfinancialinstitutions,includingbranches,ATMs,numberofdepositorsandborrowers,andfinancialservices

(deposits,loans,insurancetechnicalreserves).

#ofBanks(27%)

#ofBanksBranches(8%)

#ofATMs (543%)

#ofMFIs (333%)

1993

2002

1994

1998

1994

2002

1999

2002

267

194

17,400

16,000

3,500

22,500

6

26

Year Number

25

20

15

10

5

01994 1995 1996 1997 1998 1999 2000 2001 2002

Thousands

BranchesATMs

BankserviceoutpostsBankcorrespondents



However,becausesupply-sidedataoftenfocusesonaccountsandbranches,ratherthanactualcustomers,18theresultsusuallyneedcomplementarydemand-sidedatatoprovideafullpictureoffinancialinclusionofquality, usage and welfare.Evenmeasuringaccesstofinancialservicesusingsupply-sidedataalonehasthefollowinglimitations:

• Data may be susceptible to double counting–sinceitisdifficulttoparseoutaccountsownedby thesamecustomer,supply-sidedatamayleadtoanoverestimationoftheactualfinancialoutreach.19

• Datamaybedifficulttosegment–Withoutinformationaboutthedemographicsofthecustomers, itisdifficulttounderstandthesegmentsofthepopulationbeingservedbyinstitutions(andnotbeingserved)andthusdevelopappropriateregulationtoreleasespecificbarrierstoaccessthatarerelevanttothesepopulations.

• Datamaybedifficulttoaggregate–thevarietyofinstitutions,diversearrayofproductsandservicesanddifferentinternalreportingsystems,makeitparticularlydifficulttoaggregatedatatoderiveaclearpictureofthedepthofthefinancialsystem.20

Nevertheless,Beck,Demirguc-KuntandPeria(2007)foundthat“…in the absence of survey measures on the use of deposit and loan services for a broad cross-section of countries, our aggregate indicators provide an adequate approximation of the extent to which households and firms use deposit and loan services, respectively”(p.236).

3.3.2. Demand-side surveys Whileabasicestimateofoutreachishelpful,aclearpictureoffinancialinclusionrequiresinputfrom

customers(actualandpotential)–particularly,whetherfinancialinclusionisequitablydistributedacrossthepopulation.Becausedemand-sideapproachesarebasedonsamplesofhouseholds,oftennationallyrepresentativesamples,andcollectdemographicinformationabouttherespondent,thedatasetscanbedisaggregatedbyincomelevel,urban/ruralresidence,employment,etc,toultimatelyhelpdeterminewhoisbeingserved.AsstatedbyHonohan(2005),“even if we had a credible measure of the penetration of financial services as a proportion of the population… we also want to know how many poor people have access...”(p.4)Demand-sidestudiesareusedtofulfillthatpurpose.

Forvariousreasons,however,adequatedemand-sideinformationhasbeenmarkedlylackinginmostcountries.Unlikesupply-sidestudies,demand-sidefinancialinformationisgenerallynotalreadycollectedbygovernmentagencies,atleastnotinsufficientdepthtomeasureinclusion.Althoughmostcountrieshaveahousehold-levelincomeandexpendituresurveywhichmayincludesomequestionsonfinancialaccess,thesesurveyscollectabroadrangeofhouseholdinformation,andrarelyprovideenoughdetailaboutfinancialinclusiontobeadequate.Furthermore,householdsurveysareexpensive,andgenerallyonlycarriedouteveryfewyears(Kneiding,Al-HussayniandMas,2009).

Thereare,however,twoexamplesofnationalsurveysthatfocuspurelyonfinancialaccessandwhichhavealreadybeenconductedacrossanumberofcountriesinthepastfiveyearsorso:FinMark’sFinScopesurveyandtheWorldBank’sFinancialAccessSurveys.

FinScope(www.finscope.co.za),anationallyrepresentativestudyofconsumers’perceptionsonfinancialservicesandissueswasfirstconductedinSouthAfricain2003,andhassinceexpandedinto14otherAfricancountries,plusPakistan.ItisrunannuallyonlyinSouthAfrica,butinfiveothercountries(Kenya,Tanzania,Botswana,UgandaandZambia),FinScopeisbeingconductedforasecondtime.Itisanindividual-levelsurveywhichfocusesoncollectingcomprehensivedemographicinformation,financialusageandpsychographicinformationabouttherespondents.Thisinformationisthenusedtocreatecomprehensivemetricsontheuse,accessandattitudestocredit,savings,andotherfinancialproducts.Whileithasbeenprimarilyusedbytheprivatesector,FinScopedatahasalsoprovedusefultothepublic

18 Honohan(2005)positsthatthesameisnottrueforspecializedmicrofinanceorganizationswhichtendtokeeprecordsaboutthecustomer19 Christenetal.(2004),forexample,performedaone-timeaggregationofaccountdatafrom‘alternative’financialserviceprovidersacross148countries,though

highlightedthemethodologicalflawofequatingnumberofaccountswithnumberofclients.20 SeeHonohan(2005).



sector.TheFinScopeteamisbasedwithinFinMarkTrust,anAfrica-focusedfinancialsectordevelopmenttrustsupportedbytheU.K.’sDepartmentforInternationalDevelopment(DFID).However,FinScopesurveysareconsciouslyundertakenwiththecooperationandsupportoflocalpolicymakers,andideally,theprocessofquestionnairedesignanddatadisseminationiscoordinatedwithinalocalinstitution,usuallytheCentralBank.Inthisway,FinScopeactivelyseekstoengagethepolicycommunityandultimatelyaimstohavethesupportinginstitution“own”theprocessofrunningfurtheriterationsofFinScope.

TheWorld Bank’s Financial Access SurveyhasseveraldistinctdifferencesfromFinScope.First,theWorldBanksurveysgatherinformationatthehouseholdlevel.Thissurveyhasbeenconductedinabout10countriesintotal.Ithasbeenconductedasastand-alonesurveythatcollectsdetailedinformationaboutthehouseholds’useofaccountsatvariousfinancialinstitutions(bankandnon-bank),proximitytotheinstitutions,successorfailureofloanapplications,aswellasotherdata.Ithasalsobeenconductedasashortmoduletobeaddedtootherhouseholdsurveys,liketheLivingStandardMeasurementSurvey(LSMS)tocollectbasicfinancialinformationabouthouseholds.Second,unlikeFinScope,whichactivelyseekstoengagepolicymakersinthedesignanddistributionofthesurvey,policymakershaveconsiderablyless“ownership”andcontroloverthedesignofthesesurveys.

Asignificantchallengehasbeendevelopingademand-sidesurveywhichcanproducecomparabledataacrossalargenumberofcountries,analogoustothesupply-sideeffortundertakenbyCGAPandtheIMFdiscussedabove.Inhopesoffillingthisgap,theBill &MelindaGatesFoundationrecentlyexploredthefeasibilityofdevelopingGlobal Financial Access Snapshots(GFAS)—asmallsetofaccessindicatorsgatheredusinganexisting,nationallyrepresentativeomnibusmarketingsurvey.Themodulewouldfocusoncollectingconsistentbasicinformationabouttherespondents’useoffinancialservicesinover100countries.21However,eveniftheFoundationdecidestoproceedtofundsuchanexercisein2009,itisunlikelythattheseindicatorswouldbeavailablemuchbefore2011duetotheleadtimesinvolved.

3.3.3 Key attributes for demand-side surveys Inordertoeffectivelymeasurethespreadoffinancialinclusion,demand-sidesurveysmustbecarefully

conceptualized.Therearefourkeyissuestodecideonwhendesigningahousehold-orindividual-levelsurvey:Sampling,samplingunit,surveyinstrumentandsurveydesign.

I Sampling:MostdatausessuchasthosedescribedinTable1requireanationallyrepresentativesample.22SpecifictacticsforgatheringasamplewithcharacteristicsproportionatetothepopulationaresuggestedinFigure4,but,attheleast,thesamplemustpossessthefollowingattributestoensuretheresultingdataisadequatelyrobustforanalysis:

• Sufficientsize:Smallsamplesizes,evenifcarefullycollected,aresusceptibletomeasurementerrorwhichwhencombinedwithpotentiallylowlevelsoffinancialusage,coulddramaticallymisrepresenttheleveloffinancialinclusion.Themainconcernisthatasmallsamplehasahigherchanceofmissingorinsufficientlycoveringtheaffectedpopulation.

• Drawnfromanappropriatesamplingframe,suchasapopulationcensus: As national representation iskeytomostdemand-sidesurveys,theuseofthecensusorasimilarsetofinformationtodrawthesampleacrosstheentirecountryisessentialtobuildasamplethatsharescharacteristicsproportionatetotheactualpopulation.

• Randomselectionofrespondents:Again,inthepursuitofnationalrepresentation,randomizationhelpsensurethatallmembersofthepopulationhaveanequalchanceofbeingselectedaspartofthesample.Bothhouseholdand,inthecaseofanindividualsurvey,memberswithinahousehold,mustbeselectedrandomly.

21 BankableFrontierAssociates(2009a).22 Theexceptioniscategory3questionsofimpact,whichhingesfarmoreontherandomallocationofthesamplebetweencontrolgroupandthegroupaffectedby

thepolicythanonissuesofnationalrepresentation).



Figure4:Achievingrepresentativenessindemand-sidesurveys

II Sampling unit:Anothercrucialissuewhetherthesurveyunitisthehousehold23 or individual. An exampleofahousehold-levelsurveyistheLSMSorWorldBankAccesstoFinanceSurvey,whileFinScopecollectsinformationaboutonlyonerandomlychosenindividualinthehousehold.Bothmethodologieshaverelativemerits,thoughusingthehouseholdastheunitofanalysismayprovideamorerobustperspectivesincethefinancesareoftenfungibleacrossthehousehold.Moreover,therandomlyselectedrespondentmaynothavethebestknowledgeaboutwhatfinancialdevicesthoseintherestofthehouseholduse.Itisalsoverylikelythatthereisnosinglepersonwithinahouseholdthathasfullinformationaboutallthecashflowsinandoutofthosedevices.24Therefore,dependingonthescopeofthestudy,itmaybeidealtointerviewallmembersofthehousehold.

III Surveyinstrument,orquestionnaire:Sincetheobjectiveofmeasurementisnotonlytoattainanoverallnationalpictureoffinancialinclusion,butsoalsotomeasurefinancialinclusionbyrelevantpopulations,itisimportanttogatherotherdata(referredtoas“covariates”)suchasincome,age,educationandhouseholdcompositionwhichenablessegmentation.Recommendedcovariatesforthispurposeincludeareincome(amountandsource),educationlevel,employmentstatus,socioeconomiccharacteristicsandhouseholdcomposition.Asasimpleguide,thetablebelowshowswhatdemographicinformationwascollectedbytheWorldBankAccesstoFinanceSurveyquestionnaireinIndonesia.25

• Replacenon-responsivehouseholds/respondentsinarandomway;and

•Selectingindividualswithin households inarandomway.

Necessary survey characteristics

• Usecensusasthesampleframe.

•Facetofaceinterviewingratherthan throughtelephonesand/orinternet.

•Solicitresponsesfromactualhouseholdsratherthanfroma centrallocation(e.g.shoppingmall ormarket).

Attribute

Sample’s characteristicsproportionate to entire population characteristics

Representationof respondentsacross various relevant characteristics(income,employment,gender)

23 CullandScott(2009),usingaseriesofrandomizedexperiments,findthatratesofhouseholdusagearesimilarwhenthehouseholdheadreportsonhouseholdusageorwheneveryoneinthehouseholdisquestioned.However,randomlyselectingahouseholdinformantprovidesalesscompletepictureofhouseholduseoffinancialservices.

24 CullandScott(2009),forexample,identifythehouseholdheadasthemostimportantpersontointerviewinademand-sidesurveyregardingfinancialaccessanduse,buttheyalsoillustratethelimitationsthatcanresultwhengatheringinformationfromasinglehouseholdinterviewee.

25 ActualIndonesiansurveyisavailableat:http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTFINRES/0,,contentMDK:21668967~menuPK:4730256~pagePK:64168182~piPK:64168060~theSitePK:478060,00.html.

Specificattributes

Proportionalhouseholddistributiontogeographicpopulationcharacteristics (e.g.urban/rural)



Table2:CovariatedatacollectedfromIndonesiaAccesstoFinanceSurvey

IV Survey design:Thelastconsiderationisdesignofthesurvey,whichwasdiscussedinsection 3.1above.Table3,below,providesadditionaldetailsbydescribingdifferenttypesofsurveyswithdifferentdesignsandobjectives,inorderofcomplexity.

Table3:Differentdemand-sidesurveydesigns

Covariates

Income

Education Level

Employment status

Source of Income

Socioeconomic characteristics

Household composition

WorldBankHouseholdAccesstoFinanceSurveycollectsinformationabout…

Differentsourcesofincome(wages,business,non-workingincomesuchas grant,rentalincome,interest)forthelast12months,andforeachhousehold memberseparately.

Highestlevelofeducationforeachrespondent

Fulltime,parttime,salariedorhourly-paidjobs,aswellasself-employment.

Employmentincome,remittances,investments,etc.

Condition/materialsofthehouse,electricity,water

Numberofpeoplewithinhousehold(definedaspeople,whoaspartorwhole ofadwellingunit,havecommonarrangementsforhousekeepingandshareat leastonemealregularly).

Type of survey

One-time cross -section

Repeated cross section

Panel

Definition

Crosssectionofthepopulation israndomlyselectedandinterviewedonce

Crosssectionofthepopulation israndomlyselectedandinterviewedonce.Inthenexttimeperiod(forexampleafter 1year),anothercrosssection ofthepopulation(whichresemblesthefirstsampleinterms of population characteristics)israndomlyselectedandinterviewedonce.

Thesamehouseholds/individualsareinterviewedmultiple times at regular intervals.

Survey Objective

Snapshotofcurrentleveloffinancialaccess

Monitor progress offinancialaccessacrosstime.

Canbeusedtoshowacausalimpactofchangesinpolicyifcombinedwithotherfactors.

Examples

FinScope –AllcountriesexceptforSouthAfrica(thoughsomecountriesaresurveyedmultipletimes,thoughnotatconsistentintervals,andwithoutpriorunderstandingthatsurveywillberepeated.

World Bank Access to Finance(addontoLSMSandstandalone)–10countriesintotal;householdlevelsurveyconductedperiodically,butnotatregularintervals.

FinScope–SouthAfrica:Conductedannually

GFAS–Globaldemand-sideindicatorstobecollectedeverytwoyears.Shortquestionnairewillbeaddedontoanalreadyexistingsurveywhichasanationallyrepresentative sample.

Survey of Consumer Finances–U.S:amulti-yearapproachusedbytheUnitedStatesFederalReservetoassessconsumerfinancepatterns

Financial Diaries26-Householdlevelsurveyconductedin3countrieswhichstudiedtheuseoffinancialproductsandflowoffinancialservices;conductedatthehighfrequencyofeveryfortnightfor one year.

ENNViH (Family life survey) – Mexico:Conductedregularly;Collectsinformationonhouseholdincomeandexpenditure;hassomefinancialaccessquestions,particularlycredit.

26 Seewww.financialdiaries.comorwww.bankablefrontier.comundertheresearchheadingformoreinformation.



BellandHogarth(2009)examinedthechangesovertimeinconsumers’accessto,adoptionof,andattitudestowardsvariousformsofelectronicbankingintheU.S.Theybasedtheiranalysisontwosources:theFederalResearch’striennialSurveyofConsumerFinances(SCF),aswellasquestionsincludedbytheFederalReserveintheUniversityofMichiganSurveyResearchCenter’sSurveysofConsumers(SOC).Althoughthesurveyshavedifferentmethodologies,theywerefoundtobesufficientlycompatibletogainageneralpictureofconsumeruseandperceptionsofelectronicbankingtechnologies.Key to the analysis was that the data from the two surveys were not combined, per se, but rather analyzed separately and merely discussed together.Forexample,asthetwochartsbelowshow,theSCFwasusedtotrackthepercentageofhouseholdsthatuseonlinebankingwhilethequestionsaddedtotheSOCwereabletoprovideadeeperlookintothetypeofonlinebankingactivitieshouseholdsengagedin.Becausebothsurveyswerenationallyrepresentativeandrestrictedtohouseholdswithabankaccount,theanalysesofthedatawerecompatibleenoughtocomplementeachotheranddrawamorecomprehensivepictureofbranchlessbankingintheUS.

3.3.4.Combining data Tosummarizetheabovediscussions,supply-sidesurveysareacost-effectivewaytocollectcountrywide

dataontheoutreachofbanksorotherfinancialinstitutions,butdonotanswermorespecificquestionsaboutdemographic-specificusage.Demand-sidesurveys,whilemorecostly,aredesignedtogatherinformationaboutanationallyrepresentativesampleofthepopulation.Usually,itisnotpossibleto“splice”datatogetherifitisnotcollectedatuniformtimeperiodsandunitsofanalysis(seeHonohan,2008).However,reportsthatusetwosourcesofinformationinparalleltoprovidecorroborativeevidencecanbeveryeffective,asthefollowingcaseshows.

Box2:U.S.household’saccesstoanduseofelectronicbanking,1989-2007

3.4Whatvariablesareneededtoanswerpolicyquestions? Thefinal,butoftenthemosttime-consuminganddifficult,taskisdesigningthequestionswithinthe

survey,orwhatisknownasthesurvey instrument.Whetherthedatawillbeusedtohelpdiagnoseproblems,tomonitorortoevaluateimpactofapolicy,itisimportanttoincludethevariablesneeded toassesswhatpolicyleversmightbeused.

InTable4,welistsomeofthetopicsconnectedtofinancialinclusionandsuggestwhichvariableswouldbehelpfulinassessingthem.Withinthetopicoffinancialinclusion,tomeasurefinancialaccess,onewouldneedthenumberofaccountsandgeographicdistributionofservices,andtomeasureusage,onewouldneedmoredetailedinformationaboutrecentandpastusageandaccumulationpatternsfromindividuals.Tomeasurewhetherthereisaproblemwithindebtedness,acommonconcernamongregulators,onewouldneedanumberofindividualorhouseholdlevelvariables,suchasdebtservice andstockaswellasinformalsourcesofdebt,incombinationwithdefaultdatafrominstitutions.

60

50

40

30

20

10

0

% Households that use online banking (SCF)

1995 1998 2001 2004 2007 2003

120

100

80

60

40

20

02006

Monitoraccounts

Transferfunds

betweenaccounts

Paybills

Opennewaccounts

Apply for loans



Table4:Summaryofpolicyleversandtherequiredsurveyvariablestocollect

Core topics

Inclusion of the individual in the financialsystem

Segmentation of the market according to covariates

Usage of payment systems

Transaction costs of reaching and using financialserviceProviders

Levels of indebtedness

Demand-side variables

- Population in regions-Recentandpastusagepatterns-Wealthaccumulation

-Levelofincome- Gender-Geography-Numberinhousehold-Sourceofincome

-BillPay-Remittances-Salaries/wages-Mobile-Debit/credit/POS

-Transportation-Timeexpenditures(waitinginline,travel,requirements)

-Productfeatures-Convenience

-Debtservice-Totaldebtstock- Assets-Durationofdebt-Informalsources

Supply-side variables

-Numberofaccounts-Geographicdistributionofbanks,branches, ATMs,etc,intolow-incomeorruralareas.

-Eligibilityforaccounts

-Biographicalinformationcollectedbythe bankaboutaccountholders(gender,address,etc)

-Accountinformationfromthird-partyvendors-Numberofdirectdepositors-Numberofcreditcardaccounts, debitcardsissued,etc.

-Productfeatures

-Summaryofloanaccounts- History of default of loan payments



Inadditiontodeterminingthecontent,thedecisionaboutaresearchstrategywillhavetoconsiderthecostimplicationsofconductingsurveys.Theprocessofdesign,collectionandanalysisisintensiveintermsofbothfinancialandhumanrecoursesandwillrangedependingonthecomplexityofdesign.Formodestdataneeds,highexpendituresmaybebothunjustifiedaswellasunnecessary.Forkeypolicydecisionsaffectingthelivesofmany,ontheotherhand,thecostofcollectingmorecomprehensivedatamaybewarranted.

4.1 Take an inventory of existing data collection efforts on both demand- and supply-side

Themostcosteffectivewaytomeasurefinancialaccessiswithinformationthatalreadyexists.Thepublicdataalreadycollectedbygovernmentagents(e.g.creditbureaus,bankingregulators,statisticalbureausetc.)maywellprovideadequate,low-costinformationforregulatorsandpolicymakers.Thisalsoincludesinternational,cross-countrysourcesofinformationsuchasthoseprovidedbyCGAPand,eventually,bytheIMFand(potentially)theGatesFoundation.

Neverthelessitremainsimportanttoscrutinizethepotentialbenefitofusingexistingdata,particularlyformonitoringandsegmentation,asunduegapsincontentanddesigncanproducemisguidedoutcomeswhichmayoverrideanyfinancialsavings.Twocriticalquestionsmustthereforebeasked:

I Canexistingdatasatisfythedataneedsasestablishedabove?Itisoftenusefulatthispointtobringallexistingdatatogetherintoonedocument.Thisdocumentcanbeahelpfultooltoinitiatediscussionoffinancialinclusion,toclarifyanyconfusionoverconflictingorincomparabledata,27 andtopromotetheneed,shouldtherebeany,formoredatacollection.

II Wasthedatacollectedinasufficientlyrobustmanner?Whetherexistingsourcesofdatacanfulfilltheneedsoftheregulatorisnotonlyaquestionofcontent,butofdesign.Thesameframeworkforsamplinganddesigndiscussedabovecanhelpdeterminetherobustnessandusefulnessofthedataproducedbyothersources.

4.2 Consider use of data by stakeholders Inadditiontoaninventoryofexistingdata,acomplementarystakeholderassessmentofbothdataneeds

andthecapacitytousedatasetscanbehelpfulindeterminingwhetherandtowhatextentanewdatacollectionexerciseshouldtakeplace.Thismaybestbedoneinaseriesofface-to-faceinterviewswithpartiesalsoconcernedwithfinancialinclusion,suchasothergovernmentdepartmentsorministries,privatefinancialinstitutions,statisticalagenciesandsupportingagenciessuchascreditbureau.Dataproducedbynewcollectioneffortsshouldhavesignificancetothetypesofdecisionsthatstakeholdersneedtomakeonaregularbasisandwhethertheyusesurveydatatomakethosedecisions.Bysittingdownwithotherstakeholders,policymakersmaybetterdefinethebreadthofquestionsthatneedto beansweredbythedata.

Thatsaid,itisoftenenticingforstakeholderstowanttolisteverypossiblevariabletheycanthinkof, alistwhichmaynotreflecttheiractualneeds.However,ifstakeholdersarenotaccustomedtousingadatasetonwhichtobasedecisions,itwouldbeoverkilltoembarkonthecollectionofaverylargeandcomplicateddatasetandwisertofocusonacoresetofvariablesthatareeasytounderstand.Therefore,itishelpfultoseparatedatarequirementsintotwocategories:need-to-know and like-to-know.“Needtoknow”dataisthatwhichislikelytobeessentialformoststakeholderstohave.Publicagenciesmayrequirethisinformationtosetrelevantagendas,whereasintheprivatesector,lackofthisdatamaycauseinformationasymmetrieswhichcouldleadtodistinctmarketabnormalities.Inotherwords,inordertosetotherstakeholdersontherightpathtowardspromotingfinancialinclusion,itisessentialtoensurethatthiscategoryofdataisalreadyormadeavailablequickly.The“liketoknow”datacategory,ontheotherhand,willconsistofbroaderandmorediversedatarequirements,andislikelytobeprioritizedbasedontheconsistencyofinterestacrosstheend-usergroup,aswellasease bywhichitcanbeaccommodatedintothesurveydesign.

4 Practical implementation

27 Thisisparticularlyanissuewheninformationhasbeencollectedusingdifferentmethodologieswithvaryinglevelsofrobustness.


TheLivingStandardsMeasurementStudy(LSMS)isaresearchprojectthatwasinitiatedin1980inresponsetoaperceivedneedforpolicyrelevantdatathatwouldallowpolicymakerstomovebeyondsimplymeasuringsocialsectoroutcomestounderstandingthedeterminantsofthem.Thequestionnaires(household,priceandcommunity)thatarefieldedintheLSMSsurveysvaryacrosscountriesreflectingthespecificdataneedsandconcernsofindividualcountries.

In2005,anLSMSsurveywasconductedinGhana,whichwasdesignedtoprovideinformationonmultipleaspectsoflivingconditions,e.g.consumptionanduseofpublicservices.TakingadvantageofthedemographicinformationalreadycollectedbytheLSMS,adifferentdivisionoftheWorldBankcommissionedarevisittoarandomlyselectedsub-sampleofthehouseholdstogatherinformationspecificallyonfinancialusage.30

Themainrationaleforaddingamoduleontoanalreadyexistingsurvey,ratherthanconstructingacompletelynewsurvey,wascost.Theauthorsbelievedthat,“surveys of individuals and households about their use of financial services hold the most promise for measuring outreach well, but their cost and the other logistical hurdles have made it difficult to develop…”(CullandScott(2009),p.33).Therefore,anadd-onmoduletoarespectableandcompatiblesurveymayprovideameanstogainthenecessarydemand-sideinsight,withoutincurringsuchhighcosts.

4.3 Options for creating new data sets

Ifavailablesourcesproveinsufficient,theeffortnecessarytodevelopnewdatasetscanbejustified.Forsupply-sidedata,itistypicallythecasethatthisdataisalreadycollectedbytheregulator,butitneedstobestandardizedacrossinstitutions,checkedforrobustnessandbroughttogetherinananalyticallyhelpfulway.Althoughthisisnosmalltask,itcanbeaccomplishedwithoutneedingtocreateanentirelynewdatacollectionmechanism.

Fordemand-sidedata,whichistypicallynotalreadycollectedbytheregulator,theanalysisofexistingdatathatmayalreadybecollectedviasurveysbystatisticalagenciesneedtobeassessedtodeterminewhetherthesesurveyscansimplybeenhancedorwhetheranentirelynewsurveyneedstodevelopedwhichispurposefullydesignedtoproducethedesireddata.

4.3.1 Enhancement of existing surveys Evenifthecurrentdatasetsareinadequate,itstillmaybepossibletousecertainelementofexisting

surveys.Thisoftentakesplaceintwodifferentways:

I Enhancement of methodology–asoutlinedabove,dataappropriateformeasurementrequiresthatthesurveyhavevariouscoreattributes,includingnationalrepresentationandacomprehensivecoverageofrelevantdemographicinformation.Itmaybepossibletoincreasetherelevanceofalreadyexistingsurveysbyextendingorchangingtheexistingsample.

II Enhancement of content–itmayalsobepossibletoaddonfinancialaccessquestionstoanalreadyexistingsurvey.Theriskhereisthatthesurveylengthmaybecometoolongandcumbersometoadministereffectively.28

Partneringwithanotherinstitutionandmakingeitheroftheseenhancementscouldhavedistinctbenefits.Addingtoapre-existingsurveyprovidesavenuetosharethedesignandimplementation effortwithanotherreputableinstitutionwhocouldbecomeakeystakeholder.Partneringisalsolesscostlythandesigningasurveyfromscratch,asdatacollectioncontractshavealreadybeenestablishedandtestedbythesurveyinginstitution.Theresourceandtimesavingspotentialinthisoptioncannot beunderstated,asnewsurveydesigncanbealengthyeffort.

Nevertheless,add-oncomponentstoexistingsurveyscouldlimitthefreedomofregulatorsorotherauthoritiesandstakeholderstomeetpreciseobjectives.Therefore,itmaybewisetoconsideronlythosepartnerswhosharesimilarobjectivesandwithareputationamongstkeyindustryplayersthatwouldfacilitateappropriateusageoftheresults.

Box3:WorldBankaccesstofinancemodule,Ghana29

4 Practical implementation continued

28 Therecommendedlengthforasurveyisgenerallyonethatlastsonehour.Surveysthatlastlongermayresultinrespondentfatigueandsloppyanswers.29 Foracompletediscussion,seeCullandScott(2009).30 Foranexampleofthesurveyused,seetheGuatemalaAccesstoFinancemoduleat:http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/

EXTPROGRAMS/EXTFINRES/0,,contentMDK:21668967~menuPK:4730256~pagePK:64168182~piPK:64168060~theSitePK:478060,00.html.


Whilesurveycostsaredifficulttopredictbecauseofthenumerousvariablesinvolved,wehaveplottedactualsurveycostsforthreedifferenttypesofsurveysasanindication.Comparingthesurveysinthismannermakesevidentthetrade-offsbetweensurveydesign,especiallythesamplesizeandmethodology,andcost.Forexample,apanelsurvey,whichisarguablythemostcomplexofthesurveydesigns,despiteitsdrasticallysmallersamplesize,cancostaboutthesameasanationally-representativecross-sectionalsurvey.Additionally,becauseofthehighly-focusedobjectivesthatpanelsareusuallydesignedtomeet,theyshouldbeusedsparinglyinacountrywithlimitedresourcesanduseforsuchindepthresearch.Ontheotherhand,addingamoduleontoanalreadyexistingsurveyseemstobetheleastexpensiveoption,evenwhileaccommodatingalargesamplesize.

Survey cost and sample size

4.3.2Implementinganewsurvey Ifnationalobjectivescannotbemetthroughadoptingoraddingontoexistingsurveys,thereisacase

fordesigningandimplementinganewfinancialinclusionsurvey,thoughsuchadecisionmustresultfromcarefulconsiderationofthetimeinvolvedtoundertakesuchaprocess,aswellastherelativecostsandbenefitsofdoingso.

TimeframeforDesign:Thepreparationofanational,cross-sectionalsurveymaytypicallyrequiresixtoelevenmonthsbeforeresultsbecomeavailable.Thatprocesswouldmostlikelybecomposedofthefollowingsteps:questionnairedesignandagreementofcontentamongstakeholders(2-4months),fieldtrialswherequestionsarepilotedwithasizeableportionofthesampletoensureappropriateresponsesarereceived(1-2months),analysisofthepilotresultsandsurveyredesignasnecessary(1-2months),followedbypreparationandfinaladministrationofthesurveyamongthetargetpopulation(2-3months).Thetimetoanalyzesurveyresultsandcross-checkagainstotherdatasourcesvariesdependingonthecapacityavailabletominethedata.Infutureiterations,whensurveydesignandquestionpilotingarenolongernecessary,theprocessofsurveyadministrationandanalysiswillshortenwithbuilt-ineconomiesofscaleandinstitutionalmemory.

Cost/Benefitsofnewsurveydesign:Thecostsofdevelopinganewsurveyaresignificant–bothintermsoftime(describedabove)andmoney.Unlessthereareparticularlycompellingbenefitstodevelopingandimplementinganewmeasurementsurvey,oriftherearenoalternativesurveyoptions,itwouldbeadvisabletoreserveresourcesformorerobustandmeaningfulsurveysdesignedtoprovideanswerstospecificanddeeperquestionsaboutfinancialinclusion.

Box4:Evaluatingsurveycosts

4.4 Increasing the use of survey data Tomaximizetheuseoffinancialinclusiondata,andinturntheinvestmentmadeintocollectingit,the

resultinginformationshouldbedisseminatedinthemosteffectivewaypossibleforstakeholders.Thisrequiresnotonlyanunderstandingofvariablesnecessarytodrivetokeydecisions,butalsotheformatlikelytofacilitateuseofthedata.ItshouldnotbeassumedthatproducingreportswithheadlineresultscanbeanylesseffectiveinstimulatingactionthanprovidinguserswithaCDoflargedataset.Asimple,

0 1000 2000 3000 4000 5000 6000 7000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

800,000

Cost

(U

SD)

Sample size

Panel design

Crosssection-addonmodule

Crosssection-newsurvey



InZambia,anumberofbankshaverespondedpositivelytoheadlinedataprovidedbyaFinScopesurvey. Forexample,Barclaysusedthedatatojustifythere-openingofanumberofbranchesandservicecentres innon-urbanareas.AlsopromptedbyFinScopeevidence,thebankcreatedanewbrandandbusinessmodelspecificallyfocusedontheunbanked,althoughtheseplanshavebeenputonholdbecauseoftheglobal financialcrisis.Inaddition,ZANACO,ZambiaNationalCommercialBank,haslaunchedamobilebanking venturesimilartoWizzit.And,Dunavant,acottoncompany,hascreatedamobilepaymentlinkagefor 150,000ofitsout-growers.Bothwerestimulatedinpartbythefinancialinclusiondebatethathasbeen fuelledbytheprovisionofFinScopeheadlinedatainZambia.

31 BankableFrontierAssociates(2009b).32 Honohan(2005)statesthat“ultimately,nationalauthoritieswillbecomethemaincollectorsofsuchdata”(p.2).33 Morespecifically,“thefinancialaccessissueshighlightedbyFinAccessKenyaplayedanimportantroleinconfirmingtheCentralBank’sdecisiontoallowM-Pesa

toproceedandthennottointervenetooheavily,anticipatingthatM-Pesawouldhaveasubstantialandpositiveeffectbeyondthescaleandscopeofthebankingsector.”(BankableFrontierAssociates(2009b),p.21).

34 BankableFrontierAssociates(2009b),p.21.

user-friendlybrochurewiththemainresultsofthesurveycanbeaveryeffectiveinitialtool,particularlywherepublicandprivatesectorinstitutionsarenotusedtomakingdata-drivendecisions.Institutionsthatareaccustomedtomakingdecisionsdifferentlymaybeoverwhelmedbyneedingtointerpretarawdataset.Inthecasebelow,FinScopedatainfluencedthegrowthofthesector,withtheproductionofabrochureofdataandseveraltargetedpresentations.

Box5:FinScopeinZambia–encouragedgrowthoffinancialsector31

4.5 Role of the regulator Mostpolicymakersrecognizethat,inadditionaltobeingakeyuseroffinancialaccessdata,theyhavean

importantroletoplayinsettingthedirectionforthedevelopmentandimplementationofanationaldatacollectionstrategy.32TheBankofThailand,forexample,intheirpresentationatthe2009AFI Global Policy Forummadeaclearcasethatitisintheregulators’andpolicymakers’interesttomonitorpolicyprogressovertimeandexpressdemandfordatathatallowsthistohappen.

Theexperienceofdatacollectionthusfarsuggeststhatthiscoreleadershipbypolicymakersiswell-justified.AsFigure5shows,bothZambianandKenyanregulatorsprovidedandreceivedvaryingdegreesofdesignandimplementationsupportfortheirnationalfinancialsurveys,whilestillretainingaccesstotheresultingdataforpolicypurposes,asituationquitedifferenttothecollectionoffinancialaccessdatainIndonesia.ThehighlevelofinvolvementbytheCentralBankofKenyaintheFinAccesssurveyemboldenedthepolicymakerstousethedatafromtheFinAccesssurveytomakeakeydecisionabouthowheavilytoregulatetherelativelynewmobilepaymentsystemofferedbyM-Pesa.33 Similarly,encouragingotherstakeholderstomakeaninvestmentinthestudy(financialorotherwise)maypromotewiderusage.WefoundadeeperusageofSouthAfricanFinScopedata,forexample,amongprivatesectorplayerswhichhadgaineddirectaccesstothedatabasethroughapaidsyndicatemembership.34

Figure5:Engagementofregulators

Regulators Zambia Kenya US Fed Indonesia

Design

Fund

Analyze

Disseminate

Publicly available data

Fullyresponsible

Partiallyresponsible

Noresponsibility



Relevantdataprovidescriticalinputforunderstandingandultimatelyinformingpoliciesandapproacheswhichmayimprovelevelsoffinancialinclusion.Regulators,inparticular,playauniqueroleinthegoalofincreasingaccesstofinancial services,inthattheymustevaluateandbalancemultipleinterestsanddeviseevidence-basedpoliciesthatultimatelyincentivizetheprivatesectoryetprotect thecustomer.Awell-guidedstrategytocollectrelevantandrobustfinancialaccessdatacanincreasetheimpactofthiscomplextask.

Thisstrategystartswiththedefinitionoffinancialinclusion,whichcanbedefinedthroughanumberoflenses.Eachlenspresentslayersofcomplexityin measurement,however,whichinfluencesthelevelofresourcesneededtocollectdatatoperformthatmeasurement.Measuringfinancialinclusionwithadefinitionconfinedtoaccesscangenerallybedoneusingsupply-sidedata,whichisusuallyonhandthroughexistingreportingtoregulatorybodies.However,measuringfinancialinclusionbywelfareisrequiresamoresophisticatedhouseholdsurveywhichisrepeatedovertime.Itisunlikelythatthistypeofdataisalreadyavailableandthereforewillrequireadditionalandsignificantinvestment.

Withadefinitionoffinancialinclusioninhand,policymakersstillneedtogothroughasystematicdecision-makingprocesstoevaluatetheirvariousdataneeds.Dataaidsinboththediagnosisofwherepolicymakingshouldfocusaswellasthemonitoringfollowingpolicymaking.Thecontextualenvironmentineachcountry—theeconomicbackdrop,theexistingstateoffinancialserviceprovision,thegeographiclandscape —isdifferentandthereforemeritsacarefulanalysisofhowdatacansupportpolicymakingineachenvironment.

Thepracticalimplementationofdatacollectionrequiresanassessmentofwhetherexistingdatasetscanbeleveragedtomeetthedataneedsofbothpolicymakers andotherstakeholders.Doingsowillensurethatresourcesareusedmostefficientlywiththemaximumimpact.Iftheregulatordecidestosupportorcommissionanewnationalsurvey,itisimperativethatthedetailsofthesurvey–bothintermsof themethodologyaswellasthecontentofthequestionnaires-beunderstoodandoptimizednotonlytomaximizetheimpactofthedata,butsoalsotoensurethatfaultyconclusionsarelimited.

Withthatunderstanding,itispossibletodevelopaneffectiveresearchstrategy thatnotonlyaimstobringattentiontothestateoffinancialinclusion,butalso tohighlightparticularlyunderservedgeographicareas,demographicsegments andproductniches.

5 Conclusion


Bankable Frontier Associates. 2009a.“GlobalFinancialAccessSnapshots:ExploringFeasibilityandPotentialRisks.”Report commissioned by the Bill & Melinda Gates Foundation.

Bankable Frontier Associates. 2009b.“FinScope:AReviewofImpactandStrategicOptions.”Report undertaken for FinMark Trust.http://www.finmark.org.za/.

Beck,ThorstenandAsliDemirgüç-Kunt.2008.“AccesstoFinance:AnUnfinishedAgenda.”The World Bank Economic Review22(3):383-396.

Beck,Thorsten,AsliDemirgüç-KuntandRossLevine.2007.“Finance,InequalityandthePoor:Cross-CountryEvidence.”Journal of Economic Growth12(1):27-49.

Beck,Thorsten,AsliDemirgüç-KuntandMariaSoledadMartinezPeria.2007.“ReachingOut:AccesstoandUseofBankingServicesacrossCountries.”Journal of Financial Economics85(1):234-66.

Beck,Thorsten,RossLevineandAlexLevkov.2007.“BigBadBanks?TheImpactofU.S.BranchDeregulationonIncomeDistribution.”PolicyResearchWorkingPaper4330.WorldBank,WashingtonD.C.

Bell,CatherineJ.andJeanneM.Hogarth.2009.“U.S.Households’AccesstoandUseofElectronicBanking,1989-2007.”Federal Reserve Bulletin,July,A99-A121.

Bruhn,MiriamandInessaLove.2009.“TheEconomicImpactofBankingtheUnbanked:EvidencefromMexico.”WorldBank.Policy Research Working Paper 4981.

Burgess,RobinandRohiniPande.2005.“DoRuralBanksMatter?EvidencefromtheIndianSocialBankingExperiment.”American Economic Review95(3):780-795.

Christen,RobertPeck,RichardRosenbergandVeenaJayadeva.2004.“FinancialInstitutionswithaDoubleBottomLine:ImplicationsfortheFutureofMicrofinance.”WashingtonDC:CGAP,OccasionalPaper8.http://www.cgap.org/docs/OccasionalPaper¬_8.pdf.

Cull,RobertandKinnonScott.2009.“MeasuringHouseholdUsageofFinancialServices:DoesItMatterHoworWhomYouAsk?”WorldBankDevelopmentResearchGroupworkingpaper.

South African Financial Sector Charter. 2004.http://www.fscharter.co.za.

Giné,XavierandRobertTownsend.2004.“EvaluationofFinancialLiberalization:AGeneralEquilibriumModelwithConstrainedOccupationChoice.”Journal of Development Economics74(2):269-307.

Honohan,Patrick.2005.“MeasuringMicrofinanceAccess:BuildingonExistingCross-CountryData.”PolicyResearchWorkingPaperNo.3606.WashingtonD.C.:TheWorldBank.

Honohan,Patrick.2008.“Cross-CountryVariationinHouseholdAccesstoFinancialServices.”Journal of Banking and Finance32(11):2493-2500.

Kempson,Elaine,ClaireWhyley,JohnCaskeyandSharonCollard.2000.“Inorout?FinancialExclusion:ALiteratureandResearchReview.”London:FinancialServicesAuthority.http://www.fsa.gov.uk/pubs/consumer-research/crpr03.pdf.

References


King,RobertG.andRossLevine.1993.“FinanceandGrowth:SchumpeterMightBeRight.”The Quarterly Journal of Economics:108(3):717-737.

Kumar,Anjali,ThorstenBeck,CristineCamposandSoumyaChattopadhyay.2005.“AssessingFinancialAccessinBrazil.”WorkingPaperNo.50.WashingtonD.C.:TheWorldBank.

UNCDF. Vision and Mission Statement for Building Inclusive Financial Sectors.http://www.uncdf.org/english/microfinance/index.php

World Bank. 2008. Banking the Poor: Measuring Banking Access in 54 Economies.WashingtonD.C.:WorldBank.

References continued


Financial diaries http://www.financialdiaries.com

FinScopehttp://www.finscope.co.za/index.asp

MECOVIhttp://www.iadb.org/sds/POV/site_19_e.htm

Surveyofconsumerfinanceshttp://www.federalreserve.gov/pubs/oss/oss2/scfindex.html

WorldBankaccesstofinancesurveyhttp://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTFINRES/0,, contentMDK:21668967~menuPK:4730256~pagePK:64168182~piPK:64168060~theSitePK:478060,00.html

World Bank living standards measurement study http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTLSMS/0,,contentMDK: 21610833~pagePK:64168427~piPK:64168435~theSitePK:3358997,00.html

Additional resources


AFI,399InterchangeBuilding,24thfloor,SukhumvitRoad,Klongtoey–Nua,Wattana,Bangkok10110,Thailandt +66(0)24019370 f +66(0)24021122 [email protected] www.afi-global.org

AFIisfundedbytheBill&MelindaGatesFoundationandadministeredbyGTZ(GermanTechnicalCooperation).

About AFI

TheAllianceforFinancialInclusion(AFI)isaglobalnetworkofcentralbanksandotherfinancialinclusionpolicymakingbodiesindevelopingcountries.AFIprovidesitsmemberswiththetoolsandresourcestoshare,developandimplementtheirknowledgeoffinancialinclusionpolicies.Weconnectpolicymakersthroughonlineandface-to-facechannels,supportedbygrantsandlinkstostrategicpartners,sothatpolicymakerscansharetheirinsightsandimplementthemostappropriatefinancialinclusionpoliciesfortheircountries’individualcircumstances.

Alliance for Financial Inclusion

financial inclusion measurement for regulators: survey design and

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