Measuring Financial Inclusion: Core Set of Financial Inclusion Indicators

More and more, policymakers are recognising the importance of evidence-based policymaking and the critical role data plays 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, judiciously set targets, identify existing barriers, craft effective policies, and monitor and assess policy impact. While there is consensus on the importance of collecting financial inclusion data, no standard exists for what to measure or how to measure it. Currently, different countries measure different indicators and use a variety of methodologies for similar purposes. Some countries have sophisticated data collection mechanisms while others have none at all. To address the need for a common understanding of financial inclusion, and a basic set of financial inclusion data that is consistent across countries, the AFI Financial Inclusion Data Working Group (FIDWG) has formulated a Core Set of financial inclusion indicators.