A woman uses her finger impression to access her bank account. Only 12% of Indians used advanced bank account services such as paying bills, loan activity, and insurance-related payments in 2016, according to a new survey.
Of over 45,000 Indians surveyed between September 2016 and January 2017, as many as 63% had a financial account of some kind, 64% of all bank account users had used their account in the last 90 days preceding the survey, but only 12% used an advanced bank account service in 2016, according to Intermedia, a research organisation that conducts financial inclusion surveys across India, Bangladesh, Indonesia, Kenya, Nigeria, Pakistan, Tanzania and Uganda.
The survey also found gaps in bank account usage across gender and geography with 47% males actively using bank accounts versus 33% females, and 46% urban Indian’s actively using banks versus 37% of those who live in rural areas.
Use of banks in India is higher than in other countries: 64% of Indians used a bank account, compared to 19% in Bangladesh, 30% in Indonesia, 31% in Kenya, 41% in Nigeria and 9% in Pakistan, according to the survey.
As many as 68% said they had access to a mobile phone while only 26% said they had ever received or sent a text message, showing that basic cell phone usage--key to using mobile payment systems--is still low in India. In comparison, 85% had access to a mobile phone in Bangladesh, 80% in Indonesia, 93% in Kenya and Nigeria, and 77% in Pakistan.
Use of mobile money in India (which does not include services such as Paytm) is about the same as that in Indonesia, with 1%, and Nigeria (2%), but lower as compared to Bangladesh (40%), Kenya (81%) and Pakistan (9%), the survey found.
Follow this thread for insights into financial inclusion based on Intermedia’s nationally representative survey of over 45,000 Indians 1/11— IndiaSpend (@IndiaSpend) October 18, 2017
As many as 63% of those surveyed had financial accounts of some form, 99% of these had bank accounts https://t.co/T7iEpJVqfw 2/11— IndiaSpend (@IndiaSpend) October 18, 2017
In 2016, 64% of all Indian bank account holders had used their account in the 90 days preceding the survey 3/11— IndiaSpend (@IndiaSpend) October 18, 2017
In 2016, 2% of Indians used mobile-based products like PayTM, while 0.7% of adults had used mobile money 4/11— IndiaSpend (@IndiaSpend) October 18, 2017
In 2016, 2% reported using a Post Office Bank account, compared to 4 percent in 2015 (5/11)— IndiaSpend (@IndiaSpend) October 18, 2017
21% of those with bank accounts had a Jan Dhan account in 2016 vs 19% in 2015 and 10% in 2014 6/11— IndiaSpend (@IndiaSpend) October 18, 2017
Active financial service use concentrated among male and urban population in India 7/11 pic.twitter.com/O5IYZFMRne— IndiaSpend (@IndiaSpend) October 18, 2017
Most common advanced use of accounts is to pay bills, followed by buying talktime and saving money 8/11 pic.twitter.com/8B2Jqr6D2Y— IndiaSpend (@IndiaSpend) October 18, 2017
44% of adults were aware of banking services 1km from their homes, 29% were aware of a banking service 1-5 kms. 9/11 pic.twitter.com/cqD56lyuD1— IndiaSpend (@IndiaSpend) October 18, 2017
51% of those surveyed owned a mobile phone, 26% said they had ever received or sent a text message--tools imp for digital transactions 10/11 pic.twitter.com/vB0vY17b22— IndiaSpend (@IndiaSpend) October 18, 2017
68% Of Indians accessed mobiles, lower than Pakistan (77%), Bangladesh (85%), Nigeria (93%) 11/11— IndiaSpend (@IndiaSpend) October 18, 2017
(Shah is a writer/editor with IndiaSpend.)
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