Unbanked statistics in emerging economies.

A Dive into Unbanked Markets

At Airvantage, we are passionate about driving financial inclusion and addressing the challenges faced by unbanked populations in emerging economies. Here, we delve into some key statistics and insights that highlight the current state of unbanked markets.

Global Overview

According to the World Bank’s Global Findex Database 2021,approximately 1.4 billion adults remain unbanked globally, with a significant majority residing in developing economies. Women are disproportionately unbanked compared to men with 74% of men have an account compared to 63% of women.

Sub-Saharan Africa

The International Monetary Fund states that only 43% of sub-Saharan Africa’s adult population has a traditional bank account, roughly17% of the total global unbanked population.

One of the key challenges to improving financial inclusion on the continent is the low urbanisation rate. In Africa, cash remains the dominant mode of transaction, with over 90% of all payments and transactions conducted in cash.

Countries like Nigeria, Ethiopia, and Tanzania have particularly high unbanked rates, reflecting the challenges of expanding financial services in the region.  

In some African countries, the rate is even lower. For example, in the Democratic Republic of the Congo, only 26% of the population has a bank account, while in Angola and Ethiopia, the figures are 29% and 35%respectively. Additionally, sub-Saharan Africa has low credit and debit card penetration rates, standing at 3% and 18% respectively.

South East Asia and Pacific

China has achieved relatively low unbanked rates due to strong government-led financial inclusion initiatives. However, countries like Indonesia and the Philippines still face challenges, with around 51% and 34% of adults unbanked, respectively.

Informal workers, estimated to account for over 70% of the South East Asian workforce, also remain financially under-served. Many lack bank accounts, are in debt, and transact predominantly in cash, making it difficult to build a credit history that would give them access to formal financial tools.

India has made significant strides in financial inclusion, yet about 20% of adults remain unbanked. Similarly, in Pakistan and Bangladesh,around 20% and 31% of adults are unbanked, respectively, highlighting the ongoing efforts needed to reach these populations.

Latin America and the Caribbean

Approximately 45% of adults in this region do not have bank accounts, with countries like Mexico and Brazil having significant unbanked populations. According to the World Bank, 122 million people in Latin America were considered unbanked in 2021. This region continues to seek effective solutions to bring more people into financial wellness.

This reality underscores the urgent need for innovative solutions to enhance financial inclusion. As the regions continue to grow,there are a variety of financial services and other value added solutions that can address these challenges. At Airvantage, we are committed to playing a pivotal role in this significant opportunity to improve the quality of life for millions of people.

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Sources:  World Bank, IMF, Statista