Mobile banking on the rise in Africa as 33% of adults own e-accounts
By Jeph Ajobaju, Chief Copy Editor
Mobile banking surged last year, driven by the pandemic, according to World Bank Global Findex 2021 database just released.
Nigeria and other Sub Sahara Africa (SSA) countries saw continued rise in mobile money adoption, with 33 per cent of adults now having mobile money accounts – three times the 10 per cent global average.
World Bank Group President David Malpass said digital revolution has catalysed increases in access to and use of financial services across the world, and transformed ways 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 explained.
Bill Gates, Co-chair of the Bill and Melinda Gates Foundation, one of the supporters of the Global Findex database, pitched that 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.
The database, which surveys how people in 123 countries use financial services and fintech, unveils the narrowing of the gender gap in account ownership.
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Global digital payment grows to 60%
“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,” the World Bank said, per reporting by The Nation.
“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.”
Two-thirds of adults worldwide now make or receive a digital payment; the share in developing economies grew from 35 per cent in 2014 to 57 per cent in 2021.
The report said 71 per cent in developing economies have an account at a bank, other financial institution, or with a mobile money provider.
Account ownership gender gap narrowed from 7 to 4 percentage points globally and from 9 to 6 percentage points in low- and middle-income countries (LMICs).
The lack of an identity document in SSA is a barrier holding back mobile money account ownership for 30 per cent of adults, the survey found.
“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.