etayax.blogg.se - Tony goland

TONY GOLAND SERIES

Also read part 1 and part 2 of the series.Īccording to a recent McKinsey Publication, “new alternative data models have cut credit losses in experimental forays into lower-income segments by 20 to 50% and doubled their application approval rates.” Experian MicroAnalytics has experience implementing such initiatives.

TONY GOLAND SERIES

2007/2008 U.N.The following is a guest post by Elio Vitucci, Managing Director of Experian MicroAnalytics, as part of the series on airtime based credit scoring. Journal of Banking and Finance 32, May: 2493-2500.:

“Cross-country variation in household access to financial services.” Therefore, they believe that the estimates are still valid.īy Christopher Maggio, Research Assistant

However, the authors state that the difference made by an improvement in these two areas would not be great, relatively speaking. Honohan’s data only accounts for about 2 billion people, extrapolation was necessary. For one, Patrick Honohan’s data is from 2003, which could lead to under-reporting because of the rapid increase in financial inclusion since then. Lastly, the authors speculate on ways in which the data could be improved. The fact that urbanization had only a “weak” positive relationship with financial usage is further evidence for this assertion. This is evidence that factors such as “effective regulatory and policy environments and enabling the actions of individual financial services providers” can have an large impact on financial usage. Some countries, however, such as Thailand and India, did not fit this correlation as they have high financial usage relative to their per capita incomes. Per capita income had a “moderate to strong” positive relationship with financial usage. This portion of the study was performed using only countries from Africa, Arab states, Asia and Latin America so as to focus on low-income countries.

In Sub-Saharan Africa 80% of the adult population, 325 million people, remains unserved, as compared to only 8% in high income OECD countries.Īdditionally, the authors studied the “drivers” of financial usage.

“Of the 1.2 billion adults who use formal financial services in Africa,Īsia, and the Middle East, at least two-thirds, a little more than 800.

“2.2 billion of these unserved adults live in Africa, Asia, Latin America,.

“2.5 billion adults, just over half of world’s adult population, do not useįormal financial services to save or borrow.”.

The authors specifically study “usage” of financial services as opposed to “financial access.” The data sources included the estimates of 2003 access to formal and semi-formal financial services (using data from banks, microfinance institutions (MFIs), and household surveys) from Patrick Honohan’s 2008 paper “”Cross-country variation in household access to financial services,” 2005 population, per capita income and urbanization data from the United Nation’s Human Development Index, and poverty data from the World Bank’s PovcalNet. This paper uses improved data on financial usage, socioeconomic, and demographics to construct an accurate estimate of how many adults (older than 15 years) in the world do not use formal financial services. Written by Alberto Chaia, Aparna Dalal, Tony Goland, Maria Jose Gonzalez, Johnathan Morduch, and Robert Schiff, Published by the Financial Access Initiative in October 2009, available at: