World Bank Global Findex Database 2021
World Bank recently released the “Global Findex Database 2021”. As per report, account ownership has increased worldwide.
Key Findings of the report
- Report notes that, three out of four adults are having a financial account today. Despite that, 1.4 billion adults have no bank account.
- In developing countries; wage payment, from private sector or government sector, for 20 percent of adults was made into an account.
- Around 91% of these recipients were involved in digital payment from their account.
- 70 percent of adults used their account to store money for cash management. Around half of the adult used their account for saving money and half adults used it to borrow money.
Easier Mode of Saving Money
According to the relation between “receiving a digital payment” and “use of other financial services”; it has become an easy task for account owners to save the money until required. When needed, it has become easier for them to pay directly through their account. Similarly, behavioural studies suggests that, it is easier to save money, once it is in an account.
World Bank Suggestions for Unbanked Adults
As per World Bank data, several unbanked adults are receiving regular cash payments from government and employers. It some of the payment is shifted into an account, it will expand financial inclusion of 1.4 billion unbanked adults. Account ownership can be increased by means of digitalization.
Account to receive payment
Global Findex Database 2021 suggests that, 39% of adults or 57% of those having a financial institution account chose to open their first account at a financial institution in order to receive money from the government or to receive wage payment.
Month: Current Affairs - July, 2022
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