An Index to Measure the Progress of Financial Inclusion

This Financial Inclusion Index is a tool for monitoring the progress of financial inclusion initiatives and assessing the state of financial inclusion. The Index leverages the AFI Core Set of Financial Inclusion Indicators for access and usage formulated by the Financial Inclusion Data Working Group (FIDWG) in 2011. The Financial Inclusion Index reduces the Core Set to a single comprehensive number to quantify and capture the state of financial inclusion in a country at a given point in time.

The Financial Inclusion Index could be used as a communication tool to raise awareness among policymakers and the general public of the level of financial inclusion in a country, the achievements or outcomes of reforms related to financial inclusion and, more broadly, the development of the financial sector over time.

It is important to understand, however, that the Index is a diagnostic tool and should not currently be used to rank and compare country performances. To make the Index an effective comparison tool, policymakers and data collectors should agree to a common set of indicators and targets with a standard reporting structure.