PROMOTING GLOBAL
FINANCIAL INCLUSION
A World Economic Forum Financial
Services Industry Initiative
From Digital to Financial
Inclusion
April 2015
1
INDONESIA
Financial inclusion in Indonesia is driven predominantly by banks
23% of adult Indonesians
are financially included
20% have full-service bank
accounts1
3% have nonbank financial
institution accounts2
Little presence of
new models that
have increased
levels of financial
inclusion elsewhere
0.1% Have registered
mobile money accounts
Overlap representing those who have multiple kinds of financial accounts is not shown.
1 In addition to loans, full-service accounts offer services such as savings and insurance.
2 Nonbank financial institutions that offer at least one of these services: savings, money transfers, insurance or investments
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014
2
INDONESIA
Arisans are by far the most widely used non-bank financial service
Use of nonbank financial services (NBFS)
(Shown: Percentage of Indonesian adults, N=6,000)
Used NBFS
Never used NBFS
Use of nonbank financial services by type1
(Shown: Percentage of Indonesian adults to have
ever used, n=2,055)
Arisan
69%
Cooperative / Ventura2
Pawn shop2
32%
68%
18%
12%
Money guard
9%
Post office bank2
9%
Rural credit bank2
7%
Other
6%
Money lender
5%
▪ On average, people have only
▪
▪
▪
ever used one NBFS
32% use at least one NBFS
8% use two or more NBFS
2% use three or more
Arisans are an Indonesian form of a Rotating Savings and Credit Association (ROSCA). Arisans, while the most commonly used form of nonbank
financial services, are also one of the least formal types of financial services.
1 Question allowed multiple responses.
2 Denotes semi-formal/account-bearing nonbank financial services
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.
3
INDONESIA
Active arisan users have the same financial habits as the general
population, making them prime for formal financial inclusion
Top 5 financial behaviors in the past 90 days by
NBFS subgroup
(% of subgroup)
Total
N=6,000
Full-service
NBFS account
holders
n=229
Persons to have
used an arisan in
the past 90 days
n=1,352
Buy goods/groceries
88%
92%
92%
Pay bills
83%
90%
92%
Buy airtime
60%
65%
57%
P2P transfers
58%
64%
59%
Receive wages
55%
71%
60%
NBFS users are prime for financial inclusion
▪ They are engaged in activities that can be facilitated
by financial accounts
▪ They already use some form of financial services
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.
4
INDONESIA
There is also a major opportunity to increase penetration of
mobile money
Kenya
Indonesia
Bangladesh
Access to financial services
Percent
77.0
73.0
49.0
52.0
31.0 32.0
29.0 29.0
26.0
23.0
20.0
0.1
Total access
(ever used)
Ever used a
bank account
Ever used
mobile money
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014
Ever used
an NBFS
5
INDONESIA
So, what’s holding back digital financial services for financial inclusion?
Literacy rate of adults (ages 15+)
Percent of adults who send or receive
text messages with a mobile phone
94%
82%
69%
68%
Kenya
Indonesia
57%
Kenya
Indonesia
Bangladesh
31%
Bangladesh
Selamat pagi!
Apa kabar?
Baik-baik saja!
Dan kamu?
◦◦◦
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.
6
INDONESIA
Another opportunity may be to develop P2P transfer offerings for women
Top 5 financial behaviors in the past 90 days by demographic
(% of subgroup)
Total
N=6,000
Male
n=2,367
Female
n=3,633
Urban
n=3,160
Rural
n=2,840
Above
poverty line
n=2,239
Below
poverty line
n=3,761
Buy goods/groceries
88%
Pay bills
83%
Buy airtime
60%
65%
55%
68%
51%
73%
53%
P2P transfers
58%
40%
75%
59%
55%
61%
56%
Receive wages
55%
72%
39%
53%
57%
54%
55%
Buying goods/groceries and paying bills are the most and second most common
financial behaviors for each demographic group at approximately the same
percentages as the entire population.
Cash is the most common method for conducting all of these transactions.
Among these five categories, cash is least common for receiving wages
(96%) and most common for buying goods and groceries (99%).
SOURCE: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.
7