July 12, 2024
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52.76% of Ghanaians multidimensionally financially included – Report

A substantial 52.76 percent of Ghanaians are multidimensionally financially included according to the 2022 Composite Financial Inclusion Index.

The 2022 Composite Financial Inclusion Index was launched by the Financial Sector Division (FSD) of the Ministry of Finance to comprehensively monitor progress in implementing the National Financial Inclusion Development Strategy (NFIDS) between 2018 and 2022, which provides an overall assessment of financial inclusion by combining the three dimensions of access, usage, and quality.

Also, according to the World Bank’s Consultative Group to Assist the Poor (CGAP), only 58 per cent of Ghana’s adult population had access to formal financial services in 2015. However, a recent Demand-side (end-users) Survey report by the Ministry of Finance released in 2022 put the figure at 96%.

Although Ghana achieved 96% financial inclusion in terms of access to financial services, the result from the composite financial inclusion index shows that other areas need improvement.

The Access dimension of the 2022 Composite Financial Inclusion Index report, which measures the extent to which individuals and businesses access formal financial services, stood at 0.5882.

This indicates that approximately 58.82% of the population has access to such services. This dimension is based on 16 indicators, suggesting a relatively broad coverage of financial services nationwide.

On the usage dimension, which gauges how actively individuals and businesses engage with formal financial services, Ghana scored 0.4856.

This demonstrates that around 48.56% of those with access are actively using financial services. This dimension considers 18 indicators, suggesting a potential for increased utilization of these services.

Ghana’s Quality Index, which refers to the reliability, effectiveness, and appropriateness of financial services, stands at 0.5558 as of the year under review. This reflects a moderate level of quality in the financial services provided. This dimension considers 6 indicators, highlighting the importance of ensuring that financial services meet the needs and expectations of users.

The 2022 Composite Financial Inclusion Index report, in its outlook and policy recommendations, advocated amongst others for the implementation of nationwide financial literacy programs to empower individuals with the knowledge and skills to make informed financial decisions. Educational initiatives should be tailored to different demographics and age groups.

It further encourages financial institutions to develop innovative, inclusive, and customer-centric financial products. These products should cater to diverse needs, including microfinance, microinsurance, and tailored solutions for women and marginalized communities.

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