The International Monetary Fund (IMF) has released the 2024 Financial Access Survey (FAS) results, celebrating the survey’s 15th anniversary. This year’s report, titled “FAS: 2024 Highlights,” provides a detailed look at key trends in financial service access and usage over recent years. Since its establishment in 2009, the FAS has provided crucial data to support and assess policies that promote financial inclusion. This data is essential for fostering economic participation, reducing inequality, supporting inclusive growth, and advancing the Sustainable Development Goals (SDGs). The FAS is the most extensive annual database on financial inclusion, covering 192 countries with data spanning from 2004 to 2023. The survey includes 121 data series and 70 indicators to support global comparisons, continually updating to include areas like digital financial services and gender-specific data.
Growth in Digital Financial Services
The use of digital financial services, such as mobile and online banking, continues to expand, with mobile money playing a significant role, especially in Sub-Saharan Africa. Despite this shift, traditional financial services are still essential in many regions. For instance, between 2013 and 2019, the number of deposit accounts per 100 adults grew by over 40% in areas like emerging Europe and Sub-Saharan Africa. The increase in digital financial services has also led to more non-traditional access points like retail and mobile money agents. However, access to traditional banking channels, such as ATMs and bank branches, has decreased, particularly since the COVID-19 pandemic.
Recent Trends in Financial Access Points (2019-2023)
IMF data shows a change in access points per 100,000 adults from 2019 to 2023. These data highlight regional trends based on available information, though some variations exist due to data availability. For example, countries in Latin America and the Caribbean, like El Salvador, Colombia, and Haiti, report data on mobile money agents, but not consistently over all five years.
Microfinance Institutions Support Vulnerable Groups
Microfinance institutions have remained strong, providing financial support to economically marginalized communities even through recent economic challenges. In many regions, the number of borrowers and outstanding loans from these institutions has grown. Unlike commercial banks, which typically issue larger loans, microfinance institutions serve a more extensive range of clients with a higher number of smaller loan accounts.
Persistent Gender Gaps in Financial Services
While bringing women into the financial system has clear benefits, significant gender gaps remain in financial service usage. For instance, women’s deposit balances are only 64% of men’s, and their loan balances are just 46% of men’s. Advanced economies have made more progress toward gender equality in financial access, but gaps persist in emerging economies. Regions like Latin America and the Caribbean and developing Europe show relatively better gender balance compared to other emerging areas.
Decline in Loans for Small and Medium Enterprises (SMEs)
FAS data show a decline in loans for small and medium-sized enterprises (SMEs) from 2021 to 2023 in most countries. Despite supportive policies during the COVID-19 pandemic, tightening financial conditions and geopolitical challenges may have led to this decrease in SME lending.
Ongoing Improvements in the FAS
To keep the FAS relevant for financial inclusion policy, the IMF is testing enhancements to the survey. These potential updates include more detailed gender data, additional fintech services, and key information on loan pricing and risks, particularly for underserved groups.
