FinScope 2010: A Livelihood Approach

This document presents findings of the FinScope 2010 survey. The survey focuses on livelihoods, and studies income-generating strategies of the poor in relation to opportunities and barriers for financial inclusion.

The survey is based on questionnaires administered to 3900 South African households. It identifies vulnerabilities and aspirations of the poor, and outlines their money management behavior.

The survey sketches the financial access landscape for urban and rural populations, and identifies barriers to financial inclusion. Key findings include:

• Salaries and wages, grants and small businesses are the main sources of income;
• 52% of South Africans are dependent on others for income;
• Individuals have specific strategies to sustain livelihoods;
• Supporting basic needs and livelihood strategies of the unserved market can contribute to financial inclusion;
• Emerging pattern of increased savings was observed even at lowest income levels;
• Borrowing and credit using less risky mechanisms have increased;
• Savings and credit encourage shift from informal to formal financial access;
• Informal products serve financial needs of 38% of adult population;
• Informal sector addresses specific needs not met by formal financial sector.