Measuring Financial Inclusion: Core Set of Financial Inclusion Indicators

This paper presents the Core Set of financial inclusion indicators that the AFI Financial Inclusion Data Working Group (FIDWG) has formulated to address the need for a common understanding of financial inclusion, and a basic set of financial inclusion data that is consistent across countries.

The Core Set is a limited set of quantitative indicators that captures the status of financial inclusion in a country. The indicators measure basic and fundamental aspects of financial inclusion in a way that is standardized, yet relevant to individual countries. The Core Set is a tool to guide quantitative data collection and measurement to help policymakers develop appropriate financial inclusion policies and monitor progress over time. It aims to pave the way for greater consistency and comparability across countries. The Core Set of indicators is anchored on six key principles developed through FIDWG deliberations. They are:

• Usefulness and relevance;
• Pragmatism;
• Consistency;
• Flexibility;
• Balance;
• Aspiration.

The Core Set of financial inclusion indicators addresses the two basic dimensions of financial inclusion, namely access and usage of financial services.