On the importance of measuring financial inclusion.
The latest Global Findex report informs us that 515 million individuals opened a “bank account” at a traditional financial institution or through a mobile money provider between 2014 and 2017. As a result, 69% of adults worldwide now have bank accounts, up from 62% in 2014 and 51% in 2011. This rise in financial inclusion is welcome news, not least because, in the event of a downward income shock, a household’s consumption will fall much less if it is linked to the formal financial sector.
Kaushik Basu — Project Syndicate