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/