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Center of Competence for Sustainable Finance

What Drives Financial Inclusion at the Bottom of the Pyramid? - Online Data Appendix

Data use

The following data was produced by the University of Zurich's Center for Microfinance ("CMF") that in 2017 became a founding partner of the Center for Sustainable Finance and Private Wealth ("CSP"). Data users shall include the following attribution to the CMF each time they display the MF Market Penetration Data: (a) if the data is displayed as delivered or in a graphical format, “Data provided by the University of Zurich's Center for Microfinance, now Center for Sustainable Finance and Private Wealth ("CMF/CSP")” or (b) if the data is displayed in a transformed or modified form, “Original, underlying data provided by University of Zurich's Center for Microfinance now Center for Sustainable Finance and Private Wealth ("CMF/CSP").

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Empirical Evidence from Microfinance Panel Data

Despite the trillions of dollars managed by the financial industry worldwide, half the world still remains unbanked. This lack of financial inclusion affects disproportionately the poorer and most vulnerable segments of the population. Yet, we still do not have the necessary data to understand which are the causal drivers of financial inclusion at the bottom of the pyramid.

Currently two comparable datasets offer relevant information, but they are limited to only a few countries and years: The World Bank Global Findex survey provides demand-side data by income quantiles only for 2011 (and 2014, to be released in April 2015), and the IMF Financial Access Survey provides supply-side information for households and SMEs only for some country-years.

In order to address this failure, we use microfinance data of different countries across the world in the last decade. In particular, we consider the number of borrowers that microfinance institutions report to the Microfinance Information eXchange, Inc. (MIX). We then use World Development Indicators on the share of the population below the national poverty line to calculate a Microfinance Penetration Rate at the country-year level. This Online Data Appendix provides our Microfinance Penetration Rate for 109 countries between 2003 and 2012.

Download the Microfinance Penetration Rate (MFPR) (XLSX, 57 KB)

By tracking these countries across this period of time, our panel dataset allows to better identify the causal drivers of financial inclusion at the bottom of the pyramid, and to better control for potential endogeneity biases. We propose a quantile regression approach to study the evolution of this index across the world, while controlling for potential omitted characteristics using our panel data.
Our paper accounts for the dynamic and heterogeneous impacts that key drivers may have across different stages of market development.

Microfinance Market Penetration Map

The map below shows our Microfinance Penetration Rate for 2012, together with the five-year growth rate of each particular country.

Microfinance Market Penetration Map

Legend - Microfinance Market Penetration Map

Country Graphs

This table ranks countries according to their Microfinance Penetration Rate in 2012. We also include the five-year growth rate and average of the Microfinance Penetration Rate. Each country link provides an historical plot of comparable Microfinance Information eXchange, Inc. (MIX) , Global Findex and Financial Access Survey data. Refer to the plot explanation at the bottom of the table.

Ranking Country 2012 CAGR 5y Average 5y
1 Azerbaijan Azerbaijan (PDF, 3 KB)126.641.652.6
2 Cambodia Cambodia (PDF, 3 KB)81.43149
3 Paraguay Paraguay (PDF, 3 KB)74.528.127.2
4 Peru Peru (PDF, 3 KB)73.61749.6
5 Vietnam Vietnam (PDF, 3 KB)717.559.1
6 Mongolia Mongolia (PDF, 3 KB)64.34.855
7 Bangladesh Bangladesh (PDF, 3 KB)62.1-0.463.4
8 Bhutan Bhutan (PDF, 3 KB)56.1 16.8
9 Bosnia and Herzegovina BiH (PDF, 3 KB)49.8-8.171.4
10 Jordan Jordan (PDF, 3 KB)47.718.130.4
11 Georgia Georgia (PDF, 3 KB)47.117.525.7
12 Bolivia Bolivia (PDF, 3 KB)39.311.428.8
13 Ecuador Ecuador (PDF, 3 KB)35.813.723.7
14 Armenia Armenia (PDF, 3 KB)35.512.935.2
15 Morocco Morocco (PDF, 3 KB)34.8-14.154.2
16 Montenegro Montenegro (PDF, 3 KB)34.8-23.3
17 Kyrgyzstan Kyrgyzstan (PDF, 3 KB)29.41326.3
18 Kazakhstan Kazakhstan (PDF, 3 KB)2839.98.5
19 Colombia Colombia (PDF, 3 KB)23.710.717.9
20 Brazil Brazil (PDF, 3 KB)19.1397.2
21 Ethiopia Ethiopia (PDF, 3 KB)
22 Tunisia Tunisia (PDF, 3 KB)1835.89.5
23 Philippines Philippines (PDF, 3 KB)17.96.418
24 Nicaragua Nicaragua (PDF, 3 KB)17.4-12.126.5
25 Albania Albania (PDF, 3 KB)16.6-4.630.5
26 Sri Lanka Sri Lanka (PDF, 3 KB)15.8-14.957.3
27 Nepal Nepal (PDF, 3 KB)
28 India India (PDF, 3 KB)15.533.68.8
29 Benin Benin (PDF, 3 KB)15.216.310.1
30 Mexico Mexico (PDF, 3 KB)
31 Chile Chile (PDF, 3 KB)14.7-5.914.7
32 Dominican Republic DOM (PDF, 3 KB)11.814.6 10.7
33 Kenya Kenya (PDF, 3 KB)11.22.811.9
34 Jamaica Jamaica (PDF, 3 KB)10.7 3.9
35 Pakistan Pakistan (PDF, 3 KB)
36 Guatemala Guatemala (PDF, 3 KB)
37 El Salvador El Salvador (PDF, 3 KB)9-9.712.5
38 Tajikistan Tajikistan (PDF, 3 KB)8.613.95.5
39 Argentina Argentina (PDF, 3 KB)7.8366.2
40 Suriname Suriname (PDF, 3 KB)7.8 2.2
41 Senegal Senegal (PDF, 3 KB)7.1-0.68.3
42 Honduras Honduras (PDF, 3 KB)6.1-67.2
43 East Timor East Timor (PDF, 3 KB)
44 Lebanon Lebanon (PDF, 3 KB)5.720.14.1
45 Togo Togo (PDF, 3 KB)51.95.1
46 Trinidad and Tobago TTO (PDF, 3 KB)4.823.71.2
47 Ghana Ghana (PDF, 3 KB)4.7-118.1
48 Uganda Uganda (PDF, 3 KB)4.7-3.28
49 Turkey Turkey (PDF, 3 KB)4.6147.21.5
50 Guyana Guyana (PDF, 3 KB)4.5 1.9
51 Egypt Egypt (PDF, 3 KB)4.5-9.58.4
52 Saint Lucia Saint Lucia (PDF, 3 KB)4.4 0
53 Malawi Malawi (PDF, 3 KB)419.23.4
54 Tanzania Tanzania (PDF, 3 KB)3.9-0.54.6
55 Palestine Palestine (PDF, 3 KB)3.3-2.16.3
56 Namibia Namibia (PDF, 3 KB)3.335.60.4
57 Macedonia Macedonia (PDF, 3 KB)3.2-21.49.5
58 Rwanda Rwanda (PDF, 3 KB)2.914.92.2
59 Burundi Burundi (PDF, 3 KB)2.952.41.1
60 Laos Laos (PDF, 3 KB)2.9 0.6
61 Guinea Guinea (PDF, 3 KB)2.9-3.42.4
62 Nigeria Nigeria (PDF, 3 KB)2.617.82.8
63 Cameroon Cameroon (PDF, 3 KB)2.5-0.83.8
64 Panama Panama (PDF, 3 KB)2.54.33
65 Serbia Serbia (PDF, 3 KB)2.5-26.48.8
66 Burkina Faso BFA (PDF, 3 KB)2.5-8.74.8
67 Haiti Haiti (PDF, 3 KB)2.4-3.83.1
68 Afghanistan Afghanistan (PDF, 3 KB)2.2-23.15.8
69 Costa Rica Costa Rica (PDF, 3 KB)2.1-1.73.1
70 Indonesia Indonesia (PDF, 3 KB)
71 Ivory Coast Ivory Coast (PDF, 3 KB)1.9202.91
72 Moldova Moldova (PDF, 3 KB)1.7-9.23.4
73 Liberia Liberia (PDF, 3 KB)1.6 1.4
74 Fiji Fiji (PDF, 3 KB)1.4 0.3
75 Sierra Leone SLE (PDF, 3 KB)1.3-14.72.2
76 Russia Russia (PDF, 3 KB)1.32.21
77 Iraq Iraq (PDF, 3 KB)
78 ChinaChina (PDF, 3 KB)
79 Zambia Zambia (PDF, 3 KB)1.1220.5
80 Madagascar MDGM (PDF, 3 KB)114.80.9
81 Uzbekistan Uzbekistan (PDF, 3 KB)0.9-122.5
82 Syria Syria (PDF, 3 KB)0.710.60.4
83 Congo, DR Congo DR (PDF, 3 KB)0.618.10.4
84 Yemen Yemen (PDF, 3 KB)
85 Chad Chad (PDF, 3 KB)0.5-1.60.6
86 Congo, Rep. Congo Rep (PDF, 3 KB)0.5 2.6
87 South Sudan SSD (PDF, 3 KB)
88 Romania Romania (PDF, 3 KB)0.5-21.61.5
89 Poland Poland (PDF, 3 KB)
90 Mozambique MOZ (PDF, 3 KB)0.4-17.51
91 Niger Niger (PDF, 3 KB)0.4-30.21.8
92 Zimbabwe Zimbabwe (PDF, 3 KB)0.4 0.1
93 Bulgaria Bulgaria (PDF, 3 KB)0.3-46.44.5
94 GambiaGambia (PDF, 3 KB)
95 Papua New Guinea PNG (PDF, 3 KB)0.1-29.10.5
96 South Africa South Africa (PDF, 3 KB)0.1-61.96.5
97 Ukraine Ukraine (PDF, 3 KB)0-50.81.3
98 Angola Angola (PDF, 3 KB)0-1000.3
99 Belize Belize (PDF, 3 KB)0 8.1
100 Swaziland Swaziland (PDF, 3 KB)0-1001.5

Country Plot Explanation

We consider the national microfinance penetration rate (over the total population to make comparisons easier) resulting from the Microfinance Information eXchange, Inc. (MIX) for 2003-2012 across all the countries with available information. This corresponds to the blue lines in our graphs.

We also plot the share of formal borrowers (in the overall financial market) resulting from Financial Access Survey data. This corresponds to the red lines on our graphs.

Comparing the blue and red plots allows us to examine if the behavior of the microfinance market segment implied by Microfinance Information eXchange, Inc. (MIX) data is plausible if compared to that of Financial Access Survey data. Note that the Financial Access Survey includes only supply-side information of regulated financial institutions including regulated microfinance institutions. Microfinance Information eXchange, Inc. (MIX) , on the other hand, includes supply-side information of regulated and un-regulated microfinance institutions.

We include the share of formal borrowers (in the overall financial market) resulting from Global Findex , which is currently only available for 2011. This is the green dot in our graphs. Note that this supply-side information results from household surveys.

In addition, we use the share of microfinance institutions reporting to the Financial Access Survey and multiply it by the share of formal borrowers (in the overall financial market) resulting from Global Findex . This results in a Global Findex proxy of microfinance penetration, which corresponds to the yellow dot in our graphs.

As discussed in our paper, countries with supply-side indicators of financial inclusion that are higher than their demand-side indicators of financial inclusion can have a high financial market complexity.
Based on the country graphs in the paper, we classify countries in 4 groups according to how their overall financial complexity compares to their microfinance market segment complexity.

This web-page was produced by the University of Zurich's Center for Microfinance ("CMF") and is protected by copyright law. It contains proprietary information and material (the "Information") of the CMF and/or the authors of the Information that is provided to you solely for your non-exclusive and non-commercial use.

The Information is based on different sources considered to be reliable, but CMF makes no warranties, express or implied, as to any matter whatsoever, including, without limitation, the correctness, accuracy, completeness, fitness for a particular purpose or the non-existence of rights of third parties.

The University of Zurich is a public, not-for-profit research institution. The Information is the result of an academic research project and is not intended as a recommendation or invitation to purchase or sell financial instruments or services.

The Information displayed contains material that may be interpreted by the relevant authorities in the country from where you are viewing as a financial promotion or an offer to purchase securities. Accordingly the Information is only intended to be viewed by persons who fall outside the scope of any law that seeks to regulate financial promotions in the country of your residence or in the country in which the content is being viewed. You are solely liable to ensure that the access to web-based financial research information resources and indices is permitted under your local laws and regulations. Under no circumstances shall CMF be liable for any direct, indirect, incidental, consequential, special, punitive, exemplary, or other damage whatsoever suffered by the recipient of this Information or any others resulting from the use of the Information.

These terms shall be governed by the laws of Switzerland, without reference to its conflict of laws principles; the exclusive place of jurisdiction being Zurich (Switzerland).

Weiterführende Informationen

Microfinance Penetration Rate (MFPR)

Download full panel dataset here


We are very grateful to the Swiss Finance Institute for providing financial support to this project.

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