Zambia’s financial inclusion rises to 69p.c.
THE FinScope 2020 Survey findings show that financial inclusion in Zambia has risen to 69.4 percent from 59.3 percent in 2015.
Zambia’s financial inclusion has continued to make significant gains despite the economic challenges, says Bankers Association of Zambia (BAZ) Communications Officer, Precious Kaela-Kalusha.
Ms Kaela-Kalusha said formal financial inclusion, which referred to the use of formal financial products and services provided by institutions formally regulated, increased to 61.3 percent, up from 38.2 percent in 2015.
“This was largely driven by the increased usage of mobile money which increased to 58.5 percent from 14.0 percent in 2015.
“Informal financial inclusion, which refers to the use of any financial products and services provided by informal providers such as savings groups, declined to 32.3 percent from 37.9 percent in 2015,” she said.
Ms Kaela-Kalusha however said despite the progress made so far, lack of money was stated as the main barrier to the use of financial services.
She said unemployment, and lack of awareness and knowledge of financial products and services were also significant barriers to the usage of financial services.
This, she said, showed the need for a more coordinated approach by government and financial sector stakeholders to develop and implementation strategies and interventions that are more focused on the youth, women, aged and rural-based population.
“Demand and usage of financial services can also be increased by considering the needs and vulnerabilities of different segments of the population. This will enable financial service providers to develop more affordable, convenient, innovative, and sustainable products and services.
“The Bankers Association of Zambia would like to encourage financial service providers and other stakeholders to make use of the FinScope 2020 Survey information to identify market opportunities and mechanisms to achieve a more inclusive financial sector,” Ms Kaela-Kalusha said
The FinScope Survey provides valuable information to policy makers, regulators, financial service providers and supporting agencies, on the demand, access, use of and behaviour towards financial services by the adult population.