Measuring Financial Inclusion
Measuring the Quality of Financial Inclusion Poses a Number of Challenges and Addressing these is a Priority of AFI
More and more, policymakers are recognizing the importance of evidence-based policymaking and the critical role of data in the policymaking process, from design and implementation to monitoring and evaluation. With rigorous, objective and reliable data, policymakers can accurately diagnose the state of financial inclusion, set judicious targets, identify barriers, craft effective policies and monitor and assess the impacts of these policies.
AFI member countries are at various stages in the use of financial inclusion data, including conducting demand side surveys, consolidating supply side data, as well as implementing comprehensive monitoring frameworks and measuring qualitative outcomes, such as levels of consumer protection and financial capability.
In an effort to harmonize data across countries and provide an accessible tool for members who are collecting data for the first time, the Financial Inclusion Data (FID) Working Group developed the AFI Core Set of Financial Inclusion Indicators on Access and Usage.
The second phase focuses on creating new and more extensive measurement tools, as well as expanding financial inclusion measurement across additional member countries. AFI member nations will also be developing Second Tier Indicators, which include measurement and tools for barriers to access and usage, and the quality dimension of financial inclusion. Efforts will also focus on the development of more sophisticated data analysis tools. This will help to improve the harmonization of data and deepen policymakers’ appreciation and use of data for financial inclusion policymaking.