Large Number of Africans, that are (unbanked) “has no bank accounts “

     List of African countries who has the highest number of unofficial unbanked citizens

Nigeria, Indonesia, serial-lone and other countries still yet to be banked
 

     

          Half of the world’s unbanked people live in Nigeria and six other nations, according to a report. China, India, Pakistan, Bangladesh, Indonesia, and Egypt are the other six economies, according to the World Bank’s 2021 Global Findex study. 

    According to the study, there are still 1.4 billion adults who are not banked, which means they do not have an account with a financial institution or a mobile money provider. The survey said that the number has decreased from 2.5 billion in 2011 to 1.7 billion in 2017, and that almost all unbanked adults reside in emerging nations because account ownership is almost ubiquitous in high-income economies. 

Only seven economies in the globe are home to 54% of the world’s unbanked population, or 740 million people, according to the survey. 

   Despite having relatively high rates of account ownership, China and India account for significant portions of the world’s unbanked population (130 million and 230 million, respectively) because of their size. The next-largest populations of unbanked people are in Pakistan (115 million adults) and Indonesia (100 million). 

   More than half of the world’s unbanked people live in these four economies—Bangladesh, Egypt, and Nigeria, the survey added. The top five economies hosting the biggest percentage of unbanked individuals worldwide remained the same between 2017 and 2021. 

   In addition to Bangladesh, Egypt, and Nigeria, these four economies are home to more than half of the world’s unbanked population. In both 2017 and 2021, the top five economies hosting the biggest percentage of unbanked people in the world remained the same. 

Gap in income 

   Nigeria has improved over the past ten years, with a 50% decrease in the number of unbanked citizens. Currently, 45% of the total is banked, up from 30% in 2011. 

    

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   However, the study also found that persons in Nigeria and other developing nations are less likely to hold accounts than adults who are more affluent. Only 72% of adults in the lowest 40% of households have accounts, compared to a global average of 79 percent of adults in the richest 60 percent of households. 

   The research stated that “this disparity has decreased by half since 2011” and that the income difference in developing nations is now 8 percentage points, down from 20 percentage points in 2011. 

   However, the research stated that the income difference in account ownership is remained in the double digits in many developing economies. Wealthier adults in Kenya are around 20 percentage points more likely than poor ones to have an account, where account ownership is 79 percent. The difference is greater than 20 percentage points in Nigeria and other economies like Mozambique, Myanmar, Uganda, and Zambia, where account ownership spans from 45 to 66 percent. 

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AD Kogi, Cargo Operator for NAHCON 

    Over the past ten years, account ownership increased dramatically in the Philippines and Turkey while the income disparity stayed constant at more than 20 percentage points. 

    Nigeria’s rate of financial inclusion has significantly increased in recent years. According to Aishah Ahmad, deputy governor of the Central Bank of Nigeria, financial inclusion in Nigeria has greatly improved as the country has reached 64% of its inclusion goal. By 2024, the CBN has added another goal with a 95 percent success rate.

According to the report, several developing economies do not have a sizable income disparity. 

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    For instance, in Brazil, account ownership was 85% for wealthier persons in 2021 compared to 82% for poorer adults. Near-universal account ownership has been attained in Mongolia and Thailand, with nearly equal coverage of adults from wealthy and impoverished backgrounds. 

Economies with High Incomes 

   Because account ownership is almost ubiquitous in high-income economies, there is typically little difference in account ownership between persons who are richer and poorer. There are a few exceptions, though. 

   Adults in the richest 60% of families own double the amount of accounts as those in the poorest 40% in Croatia, Hungary, and Uruguay. In the United States, the income disparity between account owners is 6 percentage points, down from 13 percentage points in 2017. 

   According to the study, gender and income aren’t the only personal traits that seem to affect the likelihood of having an account. It continued that there are considerable variances in account ownership that are related to age, educational attainment, employment status, and rural residency. 

   The new study also revealed that the global account ownership rate of 76 percent in 2021 represents a 50 percent increase from the global average of 51 percent reported in 2011, a decade ago, and was conducted during the COVID-19 pandemic that further mobilized global efforts to promote financial inclusion. 

   Despite the fact that account ownership increased on average in both high-income and developing nations, the survey noted that the average growth rate in developing economies was higher.

                                            Thanks for reading 

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