Measuring Microfinance Access: Building on Existing Cross-Country Data

This paper provides a selective review of available data on direct access to financial services, especially for low- income people, and considers how best to build on this data.

The paper:

• Proposes a basic framework within which an analysis of the following questions can be considered:
  • How does access affect poverty and productivity?
  • What hinders access?
• Discusses the existing and potential contribution of user, provider and regulator surveys;
• Assesses their relative strengths.

The paper argues that:

• Cross-country data on savings, borrowing, insurance and money transmission services are deficient;
• Both private and public sector data users are interested in identifying who has access to what financial services;
• International data collection needs a clear conceptual framework;
• Both demand and supply considerations are relevant in interpreting data on actual usage of financial services.

The author suggests the following:

• Channels of data collection:
  • Providers of financial services;
  • Surveys of user households, enterprises, and experts.
• Outputs of data collection:
  • A limited number of national basic indicators;
  • National micro-economic databases.

The paper concludes by:

• Considering where the major gaps in data collection appear to lie;
• Arguing that the different approaches to data collection:
  • Are complementary;
  • Involve sharply differing collection costs.
• Noting that some data sources are not as widely used as they could be;
• Recommending partnerships between international agencies, national regulators and private sector financial service providers.