Global Microscope for Financial Inclusion report 2019: EIU

The 2019 edition of ‘Global Microscope: The enabling environment for Financial Inclusion’ report was released by Economist Intelligence Unit’s (EIU). The report is a benchmarking index that assesses enabling environment for financial access as well as underscores the evolving landscape of financial inclusion in selected countries. The year 2019 was 12th edition of report.

Key Highlights of Report

The overall environment for financial inclusion has improved worldwide. India, Mexico, Colombia, Peru and Uruguay now have the most favourable conditions for inclusive finance, with Colombia being ranked at first position followed by Peru, Uruguay and Mexico and India ranked 5th.

India was ranked among top countries with most promising environment for financial inclusion in terms of:  effective financial consumer , allowing non-banks to issue e-money and proportionate customer due diligence.

Only four countries namely India, Colombia, Jamaica and Uruguay scored perfectly across all four parameters. Moreover, India, South Africa, Tanzania, Mexico and Uruguay were among top countries that safeguard e-money via some sort of deposit insurance or protection.

About Global Microscope for Financial Inclusion report

It is produced by Economist Intelligence Unit (EIU), the research and analysis division of The Economist Group. The EIU was created in 1946 and is the world leader in global business intelligence.

The Microscope report was first published in 2007 and was originally developed for countries in Latin American and Caribbean regions but in 2009 it was expanded into a global study. The 2019 edition of Global Microscope report also features 11 new gender focussed indicators that measure financial inclusion for both women as well as men.

The report is a benchmarking index that assesses enabling environment for financial access in 55 countries across 5 categories.

Five parameters across which countries are assessed-

(a)Government and Policy Support

(b)Products and Outlets

(c)Stability and Integrity

(d)Consumer Protection

(e)Infrastructure

Month: Current Affairs - November, 2019