This paper summarizes the first global dataset of publicly available indicators that measure how adults in 148 countries save, borrow, make payments, and manage risk. We use the data to benchmark financial inclusion around the world and investigate the significant country- and individual-level variation in how adults use formal and informal financial systems to manage their day-to-day finances and plan for the future. While the data show that 50 percent of adults worldwide have an account at a formal financial institution, account penetration varies across countries by economic development and across income groups within countries. Although half of adults around the world remain unbanked, reported barriers to account use—such as cost, distance and documentation requirements may be possible to overcome through public and private sector-led initiatives to expand financial inclusion.

Well-functioning financial systems serve a vital purpose, offering savings, payment, credit, and risk management products to people with a range of needs. Inclusive financial systems allowing broad access to appropriate financial services—are especially likely to benefit poor people and other disadvantaged groups. Without inclusive financial systems, people must rely on their own limited savings to invest in their education or become entrepreneurs and small enterprises on their limited earnings to take advantage of promising growth opportunities. This can contribute to persistent income inequality and slower economic growth. This paper explores country- and individual-level variation in how adults around the world use formal and informal financial products to manage their day-to-day finances and plan for the future. We define financial inclusion as use of financial services and investigate how patterns of financial inclusion—along income and gender lines vary across countries at different levels of income. Next, we examine the barriers to financial inclusion and document the relationship between subjective and objective barriers to access. Finally, we discuss the potential of public and private sector-led initiatives to expand financial inclusion.