Three quarters of the world\u2019s poor, 2.5 billion in terms of number, do not have bank accounts, not only because of poverty but also because of the cost, travel distance and amount of paper work involved in opening one, according to a World Bank report.
\nThose without access to formal banking often have to rely on money lenders who often charge high fees. The \u2018unbanked\u2019 are also less likely to start their own business or insure themselves against unexpected events, said World Bank\u2019s Global Financial Inclusion Database or Global Findex posted on its web site.
\nIt said financial inclusion or being \u2018banked\u2019 could be transformative as it allows poor people to build a more secure future. The ability to save and borrow allows them to build their assets, start a business, invest in education, establish a credit rating, and eventually own a home.
\n\u2018Providing financial services to the 2.5 billion people who are \u2018unbanked\u2019 could boost economic growth and opportunity for the world\u2019s poor,\u2019 said the World Bank president, Robert B Zoellick.
\nHe added: \u2018Harnessing the power of financial services can really help people to pay for schooling, save for a home, or start a small business that can provide jobs for others. This new report on the world\u2019s \u2018unbanked\u2019 makes the case: the more poor people are banking today, the more they are banking on their future.\u2019
\nThe report stated that women are particularly disadvantaged when it comes to access to financial services. Only 37 per cent women in the developing countries have accounts whereas 46 per cent men do. The gap is even bigger among those in poverty: Women living below $2 a day are 28 per cent less likely than men to have a bank account.
\nWorldwide, 22 per cent adults report having saved at a formal financial institution in the past 12 months, according to the Global Findex. Findex provides the most comprehensive picture yet of how people around the world save, borrow, make payments and manage risks.
\nEven among those who do have formal bank accounts, only 43 per cent adults use their accounts to save. Yet 61 per cent account holders worldwide use their accounts to receive payments from an employer and the government or family members living elsewhere, said the report.
\nThe data was collected by Gallup, Inc. using the Gallup World Poll Survey. The World Bank\u2019s Development Research Group is building the database with a 10-year grant from the Bill & Melinda Gates Foundation.
\nFew adults in developing countries use formal financial products to manage risk. More than 11 per cent adults in developing countries have an outstanding loan for emergencies or health care needs, but more than 80 per cent of these adults use only informal sources of credit.
\n\u2018Good, comparable national data is so important for the development of effective policies. I hope policy makers will use this research to help make sure everyone, everywhere, has access to financial services,\u2019 said Princess M\u00e1xima of the Netherlands and the UN secretary general\u2019s special advocate for inclusive finance for development.<\/p>\n

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Three quarters of the world\u2019s poor, 2.5 billion in terms of number, do not have bank accounts, not only because of poverty but also because of the cost, travel distance and amount of paper work involved in opening one, according to a World Bank report. Those without access to formal banking often have to rely … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[41],"tags":[7961,7962],"yoast_head":"\n