Measurement of Financial Inclusion and Payment System

	Country:	El Salvador
	Member institution:	Banco Central de Reserva de El Salvador
	Timeline:	10 October 2021 – 30 November 2022
	Thematic area:	Gender Inclusive Finance, Inclusive Green Finance, Digital Financial Services

Context

Surveys found that only 18% of women in El Salvador had a savings account, and that there was a growing, 14%, gender gap in overall access to finance.

El Salvador’s agriculture sector, which has a majority female workforce, is highly vulnerable to climate variability and change. There was a need to evaluate how vulnerable people are to climate change, how they deal with money after disasters, and how the market can lessen the effects of climate change on vulnerable groups.

The Central Reserve Bank of El Salvador (BCR) lacked access to information, particularly data on the gender gap in access to finance, that would support the monitoring of financial inclusion activities, and the development of appropriate policies and regulations.

Project Activities

• Through the project, the BCR strengthened its capacity to collect sex-disaggregated data, and to measure the level of financial inclusion and financial education. Additionally, the project generated essential disaggregated data on the status of the gender gap.
• BCR was able to incorporate data concerning traditional financial products, digital financial services, cryptocurrencies, and inclusive green finance. Findings from a National Financial Inclusion Survey highlighted disparities among rural and urban areas, men and women, youth and adults, as well as low and high-income populations.
• A Financial Capabilities Survey identified gaps in financial education, particularly for women, individuals with low incomes, residents of rural areas, youth, and the elderly.
• Furthermore, a Financial Inclusion and Payment System Information Portal was developed to facilitate automated data collection and processing. This portal streamlined the generation of reports and facilitated the monitoring of policy implementation.

Outcome

The project significantly developed financial regulators and policymakers’ understanding of financial inclusion, notably relating to gender issues and to inclusive green finance.

The project identified gaps and developed tools for effective data management and policy implementation. These achievements pave the way for more targeted and impactful initiatives to promote inclusive financial systems and empower underserved populations.