Mapping the DNA: Using consumer insights to unlock the potential of financial inclusion

In the first six MAP pilot countries, financial inclusion – contrary to popular belief and despite millions of programming dollars – has in many ways not lived up to its promises. If we move away from a one-dimensional view of financial inclusion as the percentage of adults with a formal bank account, we find that formal financial services are in fact having a limited impact on people’s lives (or in some cases leaving people worse off). Indeed, many bank accounts remain dormant for long periods at a time, or are used only for withdrawing cash once wages are deposited. Cash and informal financial services remain the order of the day.

The insights from the first six MAP pilot countries is showing that for financial inclusion to deliver on its promise, a paradigm shift is required in how we think about financial inclusion. The MAP Global Insights series synthesises the evidence from the first six MAP study countries. By switching the lens through which we view financial inclusion – away from providers and governments to the consumer – we start to understand why financial inclusion is in many ways not working and, importantly, what providers, policymakers and donors can do to change this.

 

Note 6 of the Global Insight Series provides an overview of the insights unlocked through use of the MAP methodology, and of the paradigm shift needed in how we think about financial inclusion as reflected in each of the five notes in the series.

The MAP Global Insights series attempt to consolidate and synthesise the learnings from the first six MAP pilot countries which have been conducted in Thailand, Myanmar, Swaziland, Mozambique, Lesotho and Malawi.

Additional Info

  • Country: Mozambique, Swaziland, Malawi, Lesotho, Global, France
  • Institution: Cenfri, FinMark Trust, UNCDF
  • Date Published: 2016
  • Document Type: Synthesis Documents
  • Author/s: Christine Hougaard, Hennie Bester, Jeremy Gray, David Saunders, Albert van der Linden
 

Mapping the DNA: Using consumer insights to unlock the potential of financial inclusion

In the first six MAP pilot countries, financial inclusion – contrary to popular belief and despite millions of programming dollars – has in many ways not lived up to its promises. If we move away from a one-dimensional view of financial inclusion as the percentage of adults with a formal bank account, we find that formal financial services are in fact having a limited impact on people’s lives (or in some cases leaving people worse off). Indeed, many bank accounts remain dormant for long periods at a time, or are used only for withdrawing cash once wages are deposited. Cash and informal financial services remain the order of the day.

The insights from the first six MAP pilot countries is showing that for financial inclusion to deliver on its promise, a paradigm shift is required in how we think about financial inclusion. The MAP Global Insights series synthesises the evidence from the first six MAP study countries. By switching the lens through which we view financial inclusion – away from providers and governments to the consumer – we start to understand why financial inclusion is in many ways not working and, importantly, what providers, policymakers and donors can do to change this.

 

Note 6 of the Global Insight Series provides an overview of the insights unlocked through use of the MAP methodology, and of the paradigm shift needed in how we think about financial inclusion as reflected in each of the five notes in the series.

The MAP Global Insights series attempt to consolidate and synthesise the learnings from the first six MAP pilot countries which have been conducted in Thailand, Myanmar, Swaziland, Mozambique, Lesotho and Malawi.

Additional Info

  • Country: Mozambique, Swaziland, Malawi, Lesotho, Global, France
  • Institution: Cenfri, FinMark Trust, UNCDF
  • Date Published: 2016
  • Document Type: Synthesis Documents
  • Author/s: Christine Hougaard, Hennie Bester, Jeremy Gray, David Saunders, Albert van der Linden