A Needs-Based Approach to Financial Inclusion Measurement in Zimbabwe

The main objective of this study was to test the i2i needs-based measurement framework for financial service usage in Zimbabwe by assessing the financial inclusion landscape from a needs perspective. A further objective was to examine the nature and possible drivers of financial services usage in the Zimbabwean context, specifically as it relates to the formal credit market.

The data used consisted of a demand-side survey specifically undertaken for this study and loan repayment data from a commercial credit bureau, XDS Zimbabwe used to ascertain the borrowing behavior of consumers. The study produced the following key findings from a needs perspective:

• Most of the respondents showed inadequate planning and remain largely unprepared to deal with shocks and major financial impact such as death or sickness.
• Challenges in managing day-to-day expenses were common among respondents.
• Most people meet their goals through savings.
• Banks remain the most used financial services provider (FSP) towards meeting of goals and resilience, either through savings, credit or receiving income or remittances.
• Mobile money operators and funeral parlors enjoy the greatest perceived importance and trust from consumers.
• Women placed greater importance on, and have greater trust in, relationship-based FSPs such as community groups than males do.