Mobile banking witnessed a huge surge in 2021, the World Bank Global Findex 2021 database released on Wednesday, has said.
According to the database, the COVID-19 pandemic drove the surge.
The database shows that Nigeria and other parts of Sub-Saharan Africa experienced continued rise in mobile money adoption, with 33% of adults now having mobile money accounts—three times larger than the 10% global average.
World Bank Group President David Malpass said digital revolution has catalysed increases in the access and use of financial services across the world and transformed ways in which people make and receive payments, borrow, and save.
“Creating an enabling policy environment, promoting the digitalisation of payments, and further broadening access to formal accounts and financial services among women and the poor are some of the policy priorities to mitigate the reversals in development from the ongoing overlapping crises,” Malpass said.
The Co-chair of the Bill and Melinda Gates Foundation, one of the supporters of the Global Findex database, Bill Gates, said the world has a crucial opportunity to build a more inclusive and resilient economy and provide a gateway to prosperity for billions of people.
“By investing in digital public infrastructure and technologies for payment and ID systems and updating regulations to foster innovation and protect consumers, governments can build on the progress reported in the Findex and expand access to financial services for all who need them,” he said in his reaction to the survey’s findings.
The database, which surveys how people in 123 countries use financial services and fintech, unveils the narrowing of the gender gap in account ownership.
“As of 2021, 76% of adults globally now have an account at a bank, other financial institution, or with a mobile money provider, up from 68% in 2017 and 51% in 2011. Importantly, growth in account ownership was evenly distributed across many more countries. While in previous Findex surveys over the last decade much of the growth was concentrated in India and China, this year’s survey found that the percentage of account ownership increased by double digits in 34 countries since 2017,” said a statement announcing the report.
Two-thirds of adults worldwide, the database shows, now make or receive a digital payment, adding that the share in developing economies grew from 35% in 2014 to 57% in 2021.
The report said 71% in developing economies have an account at a bank, other financial institution, or with a mobile money provider.
The survey found that the gender gap in account ownership narrowed from 7 to 4 percentage globally and from 9 to 6 percentage points in low- and middle-income countries.
It said in Sub-Saharan Africa, the lack of an identity document is a barrier holding back mobile money account ownership for 30% of adults.
“Over 80 million adults with no account still receive government payments in cash – digitalising some of these payments could be cheaper and reduce corruption. Increasing account ownership and usage will require trust in financial service providers, confidence to use financial products, tailored product design, and a strong and enforced consumer protection framework.”
The Global Findex database is produced by the World Bank every three years in collaboration with Gallup, Inc.