Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

China’s Share Of Unbanked Population Is 2.8x Higher Than The US, Morocco Tops The List

Data acquired by Finbold indicates about 287 million adults, or 20% of the Chinese population, are unbanked as of Q1 2021. Compared to fellow economic powerhouse, the United States, only 7% of the population, or 23.17 million adults are unbanked. Therefore, the Chinese unbanked population is at least over 12 times higher when compared to the US.

China’s rural population accounts for a high share of the unbanked

The report explains why China accounts for a significant share of the unbanked population despite being a global economic giant. According to the research report:

"Based on China's economic standing globally, the 20% unbanked population can be considered significant. However, the figure mainly constitutes people who live in rural areas where a majority have no access to essential financial services like bank accounts. In most cases, these regions lack banking branches. Rural households are also less educated with lower income streams. Additionally, the percentage correlates with the country's 1.4 billion population."

Elsewhere, among the top ten most unbanked countries, Morocco ranks top at 71% representing 26.19 million people. Vietnam follows with an unbanked population of 69%, followed by Egypt at 67%. The Philippines ranks fourth at 66%, followed by Mexico at 63%.

Other countries with a significant unbanked adult population include Nigeria (60%), Peru (57%), Colombia (54%), Indonesia (51%), and Argentina (51%).

The report further explains how the coronavirus pandemic aided the unbanked population. The report notes that:

"Access to credit has been a critical driver of financial inclusions, and the pandemic has made it difficult for most people. With surging unemployment, financial institutions are wary of people defaulting on credit. In return, banks have tightened requirements for getting credit. Furthermore, decreasing savings have contributed to the unbanked population."

The unbanked population might tilt in the future, aided by the growth of FinTech companies alongside the emergence of cryptocurrencies.

Read the full story with statistics here: https://finbold.com/chinas-share-of-unbanked-population-is-2-8x-higher-than-the-us-morocco-tops-the-list/

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>