More Zambians now financially served
By Business Reporter
THE number of Zambian adults who are financially served has increased slightly from 33.7 per cent in 2005 to 37.3 in 2009, the latest FinScope survey has revealed.
And Finance and National Planning Minister Situmbeko Musokotwane has called on banks to be more relevant to the masses of the Zambian population who remain financially excluded than concentrating on provision of elitist products.
The results of the second FinScope survey, launched in Lusaka yesterday, show that the number of Zambians financially excluded decreased between 2005 and 2009, from 66.3 per cent to 63.7 per cent, although the banked population remained stagnant around 14 per cent.
Launching the results, Dr Musokotwane said there were more people using non-bank financial institutions and informal products in 2009 than was the case in 2005.
The proportion of Zambian adults who rely on formal financial products not provided by banks increased from 7.8 per cent in 2005 to 9.3 per cent last year, and those relying on informal products also increased from 11.3 per cent to 14.1 per cent in 2009.
The survey, which targeted 4,000 households across the country, highlights the importance of informal financial inclusion with 16.5 per cent adults in rural areas and 10.2 per cent of urban adults using only informal products.
Dr Musokotwane said the study, just like the first in 2005, was helpful in policy formulation by the government and provision of relevant financial services and products by the financial institutions in Zambia.
However, the minister carpeted the banks and other financial institutions for inadequately meeting the needs of the majority of Zambians in need of financial services, because they concentrated on providing “elitist services.”
Banks and non-bank financial institutions should engage with the Government and provide housing mortgage financing and other productive loans to teachers, police officers and other civil servants in the public service.
Bank of Zambia (BoZ) governor Caleb Fundanga said the FinScope survey results would play an important role in profiling demand and needs of financial services in Zambia.
Dr Fundanga said the study results would also assist the Central Bank to identify the legal, policy, regulatory and market issues that were considered obstacles to growth, innovation and competition in the financial sector.
The second FinScope, funded by the Private Sector Development Programme (PSDP), was commissioned in 2008, as part of the implementation of the Financial Sector Development Plan. The survey seeks to provide information that is central to the sound functioning of the financial markets and relevant to both service providers and policy makers.
