Infographic: Who are the Underbanked?
There are close to 2.5 billion people in the world who do not have an account at a financial institution; a population that is referred to as the underbanked. To help address this population and understand the financial gap, The World Bank has created the Global Findex, which is described as a financial inclusion database used to measure the use of financial services and identify those with the greatest barriers to access.
The World Bank created an infographic outlining details on who, and why people are underbanked. According to the Global Findex, “3/4 of the world’s poor do not have a bank account, not only because of poverty, but also due to costs, travel distance and paper work involved.” The index also found “gaps in financial inclusion across demographics, with women, the poor, youth, and rural residents at the greatest disadvantage.” See below for the full infographic and breakdown of stats on the underbanked.
Does your FI have measures in place to reach the underbanked population? Do you see this as a concern for financial institutions in the future? Let us know in the comments section to Tweet @Bankingdotcom.