FINSCOPE MYANMAR 2018 LAUNCH - NAY PYI TAW, MYANMAR 19 JUNE 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FinScope Myanmar 2018 Launch Nay Pyi Taw, Myanmar 19 June 2018
Sampling and weighting
Respondent profile Coverage and Sample and fieldwork
methodology validation
§ Sample representative at
§ Universe: Adult § Fieldwork conducted
national, state/regional and
population in from January – April 2018 urban/rural
Myanmar
§ Questionnaire translated § Sample drawn probability
§ Myanmar residents 18 and conducted in proportional to population size
years and older Myanmar language § Survey data weighted to adult
population projection 2018
§ 5 500 interviews
conducted by Myanmar § Sample methodology and data
weighting verified by Central
Survey Research (MSR)
Statistics Office / Department
of Population & Statistics
2
Understanding local context 3
Demographics 4
Sources of income and livelihoods
Most adults depend on irregular income sources
Main income source
o Almost a quarter of adults
claim farming as main income
source
o 21% of adults claim not to
have an income
o 90% of those without income
are dependent on
family/friends
5
Sources of income and livelihoods
Two in three adults earn under $75 per month
Personal Monthly income
$75 earn under per month
o Two thirds (66%) of adults
personally earn
MMK100,000 (≈$75) or less
per month 34 14 8 7 22 15
MMK 100 001 and above MMK 60 001 - MMK 100 000
MMK 30 001 - MMK 60 000 MMK 30 000 and under
No income Do not know/refused
6Poverty symptoms
Poverty related symptoms show a drop in 2018
Skipped a meal because of lack of 6 6%
money 9
Gone without medical treatment or 15
15%
medicine 17
Not been able to send children to 6 6%
school 8
2018 2013
• Poverty symptoms measured from 2013 amongst Myanmar households have reduced in 2018
7Access to amenities
Households with access to tap water Households with electricity connection
(as main source of water used in household)
Total: 54%
Total: 65% Urban 92% : Rural 39%
Urban 79% : Rural 56%
8Communication and media access
Increased access & usage of technology in 2018
Media access in past month (%) Usage of communication device (%)
Basic/
Television 69 Smart phone
78
59 42
Internet 35 Internet 28
2 2
Radio
25 Computer, laptop 4
Or tablet
51 3
Newspaper/
19 Email 3
journals
19 2
Landline at 3
Magazines 8 home
16 10
2018 2013
9Infrastructure accessibility
Rural adults are the furthest from financial access points
Time taken to reach destination: Minutes (average)
ATM 23
82
Post office 26
70
Bank 23
69
Mobile money 18
69
MFI
24
43
Market place
18
42
20
Medical facility 41
Public transport 16
29
Grocery Store 8 Urban Rural
11
10Financial inclusion status 2018
Financial inclusion:
“More people have formal access in 2018” ”
Overall
2018 2013
Formally served 48% Formally served 30%
Banked 25% Banked 17%
= 70% as
Other formal (non-bank) 34% there are Other formal (non-bank) 17%
overlaps Informal 50%
Informal 50%
Excluded 30% Excluded 38%
• Banking is up by 8 percentage points, organic growth mainly driven by payments
• Uptake of other formal non-bank products has doubled largely driven by credit from MFIs and Cooperatives
• Uptake of informal financial products/mechanisms is stable at 50 percentage points although group increased
in absolute numbers form 16,3 million in 2013 to 17 million 2018
• Financial exclusion has been decreased by 8 percentage points
12Financial inclusion:
Financial Access Strand 2018
25% 23% 22% 30%
2018
17% 13% 32% 38%
2013
25% 22% 23% 30%
Rural
27% 24% 19% 30%
Urban
A One Household One 24% 29% 22%
Account
13 Total Urban RuralBanking:
Low or no income is the main barrier to not having a bank account
Drivers Barriers
25% of adults are banked in 2018 75% of adults are not banked in 2018
You get interest on Do not need it -
27
savings Insufficient or no 23
money to justify it
Money is safe from
14
theft
Do not understand
8
how they work
Easy way of sending
8
money to others
Income coming in,
Easy way of but insufficient
6
receiving money 6 balance after
from others expenses
Safe way of sending They are too far away
6 or transport too 1
money to others
difficult
14Savings and investment
More adults are saving in 2018
Overall
Formal savings 12%
7%
Banked 7%
4%
Other formal 6%
3%
34%
Informal
30%
25%
At home
19%
50%
Do not save
62%
2018 2013
15Savings and investment
Savings across all categories increased
Saving Strand
7% 5% 27% 11% 50%
2018
2018 7 5 27 11 50
4% 3% 25% 6% 62%
2013
2013 4 3 25 6 62
Save at bank Save at formal non-bank Save informally Save with family/friends/home Do not save
16Saving and investments:
Savings though MFIs, Cooperatives and Savings groups have
doubled in 2018
Saving mechanisms 2018 2013
Savings at bank (all savings products at bank) 2,3 million 1,4 million
Savings through investing jewellery/gold 3,9 million 3,3 million
Savings with / membership with informal group (Su jay) 2,25 million 930 thousand
Saving in livestock 1,9 million 3,5 million
Savings in a secret place or at home 8,6million 5,3 million
Savings through MFI 1,15 million 450 thousand
Savings with a cooperative 780 thousand 141 thousand
17Drivers for saving (%)
Adults mainly save for medical expenses, living expenses and education regardless of financial product
50% of adults have savings products 50% of adults have no savings products
Jewellery/Gold MFI
No money after living
Medical expenditure - Medical expenditure - expenses
69
42 emergency
21
emergency
Start or expand my Do not have an income –
Living expenses 20 20 no money to save
21
business
Medical expenditure -
planned
17 Living expenses 18 Do not need it 4
Education / training /
13 Education / training /
school fees
school fees
13 Never thought about it 2
Start or expand my
business
9 Medical expenditure - Do not want to save –
planned
11 2
see no purpose
18Borrowing and credit:
Overall (%)
2018 Levels of credit uptake (number of adults)
4,623,334
Formal credit 25 4,236,801
19
14
3,524,939
Banked
14
Other formal (non- 16
bank) 7 2018
2013
Informal 22 1,548,349
23
Family/friends 13 607,366
17
Not borrowing 55
52 Credit from Credit from Credit from Credit from Credit from
MADB other banks MFIs Cooperatives Money lender
19Borrowing and credit:
Credit Strand (%)
2018 14 12 13 7 54
2013 14 5 18 11 52
Credit from bank Credit from formal non-bank Informal credit Credit from family or friend Do not borrow
20Borrowing and credit: 54% of adults do not currently borrow
Adults also borrow for consumption
• 47% Can pay living expenses with what they
46% of adults are borrowing have
• 19% Fear debt
MADB (%) MFI (%) Cooperatives (%)
Purchase of agricultural
inputs such as seeds or 77 Living expenses 29 Living expenses 40
fertilizers
Agricultural equipment Start or expand my Purchase of agricultural
48 27 inputs 32
purchase business
Living expenses when you Purchase of agricultural Agricultural equipment
23 17 purchase 15
do not have money inputs
Medical expenditure - Medical expenditure -
7 Purchasing livestock 11 emergency 12
emergency
Education / training / Medical expenditure -
5 9 Start or expand my business 11
school fees costs emergency
21Insurance and risk management
Insurance uptake is slow but increasing
2018 2013
Insured 16% Insured 7%
Other formal insurance 6%
Other formal insurance 2%
Informal insurance 11%
Insurance from others 1% Insurance from others 5%
Not insured 84% Not insured 93%
22Insurance and risk management
Health, crop failure and death are the most popular risks covered through credit
Borrow / Biggest risk faced that affects finances (%)
pawn goods
A big illness or health
Health problem 45
22% 39%
Coping Harvest failure 23
RISK strategy
Death of or loss of
income from main 10
6% 12% 29% income earner
Death of
Natural disasters 7
breadwinner Crop
failure Do nothing
Loss/failure of your
business 6Insurance and risk management
Adults are mainly uninsured due to a lack of insurance knowledge
Have not heard about it 39
85% of adults are uninsured
Do not know how it works 20
50% of adults are unaware of Do not need it 16
insurance products –> low
financial literacy/education
Have never thought about it 14
Do not know 10
24Remittances and mobile money:
Overview of those who remitted in the past 12 months (%)
Overall
2018 2013
Formal remittances 16 Formal remittances 10
Banked 6 Banked 3
Other formal (non-bank) 11 Other formal (non-bank) 7
Informal 2 Informal 5
Friends and family 3
Friends and family 10
Not remitting 79
Not remitting 77
25Remittances and mobile money:
Overview of those who remitted in the past 12 months
Remittance Strand (%) More people are remitting in 2018
2018 6 10 2 3 69
Informal to
Formal
2013 3 7 4 9 77
Remittances through bank Remittances through other formal (non-bank)
Remittances though informal channels Remittances though family and friends
Do not remit
26Mobile money:
Although 2% of adults are registered growth of Mobile money is
promising
4% of adults use Mobile Money 96% of adults do not use Mobile Money
It is most convenient 72 Do not need it 44
I do not have enough information
Only service available in about it
16
8
my community
I can not use it - not educated 15
Cheapest / most
6
affordable I do not have money to send or
11
receive
Trust it 5
It is complicated 10
Practical way to pay bills 4 Do not have a cell/mobile phone / sim
4
card
There are no mobile money service
To sell airtime / trade 3 % 4
providers in my area %
I have not thought about it 3
27Linking financial inclusion and local
context through the SDGs
28Good health and well-being
Coping mechanism Population that skipped
treatment as a result of poverty
Borrowed money or
15%
pawned goods 39
Gift / help / assistance
from others 16
Time taken to reach medical
Used formal account – facility (Mean)
14
22% savings
Sold something to get 20 min Urban
money 13
Experienced health crisis 41 min Rural
requiring medical expenses Cut down expenses 9
Nothing I could do 7
29Quality education
Asset ladder vs. educational level
6% Population that had to forego
school as a result of poverty 13% Comfort
71%
Financially
included
Primary 72% Average
Vocational/Special Tertiary education Financially
ised training No formal 15% Basic
29% excluded
education
1% 8% 11%
31% Comfort Financially
70% included
62%
Secondary Average
30% Financially
7% Basic excluded
Secondary 44% 36% Primary
education 67% Financially
education Comfort 78% included
33%
Tertiary Average
22%
Financially
Basic excluded
0%
One of the main drivers for savings and borrowing is education costs 13%
Portion of average monthly income that goes
20% towards education costs
30Gender equality
No $0.01 $1.91 $6.66 < Main source of income – top 6
income - -
$1.90 $6.65 52% 48% Farming 8
31
Total 25% 15% 37% 23%
Self-employed – 15
Female 35% 15% 33% 17%
unregistered sector 12
Male 14% 15% 42% 29% F M
Money from family 31
and friends 11
5
48% of women are dependents Casual labour
8
19% Banked Selling 8
7
30% Other formal (unbanked)
Get money from 18
46% Informal household member 6
Female Male
31Sustainable cities and communities
Housing Ownership Excluded Included Total
83% Metal sheets – main Water 63 66 65%
roof material for house Other
49% Bamboo –
main wall material for
Free-house 2% Sanitation 72 74 74%
house Rent the house 7% Power 55 56 54%
54% Wooden planks – 4%
main floor material for (%) (%)
house
Time taken to destination: Minutes
Post office 26 70
MFI 24 43
87% ATM 23 82
Own the house Bank 23 69
44% of those who own the (alone/other Medical facility 20 41
house have the title deed HH member) Mobile money 18 69
Market place 18 42
84% used savings to purchase/build the house 16 Urban
Public transport 29
About 1% used formal finance to acquire house 8 11
Grocery store Rural
32Decent work and economic growth
Main income source
33Summary:
• More adults have formal financial access in 2018 largely driven by MFI and Cooperatives
with most adults using formal services for borrowing, payments and savings
• Low, but meaningful, adult uptake (2%) on mobile money with rising potential to expand
financial services to rural, remote, and disparate households
• Shifts within the broad formal services with more people saving with bank and transacting
(payments)
• Significant increase in rural uptake of formal services outside of banking mainly driven by
credit and savings with MFIs and cooperatives showing a double increase in this category of
formal financial products
• Fewer adults dependent only on informal financial services in 2018, which are mainly used
for living expenses, mitigating risk such as health expenses and meeting goals such as
education and buying farming equipment
• Formal financial services are mainly employed for livelihood investments, education and
%
living expenses. Informal financial services are primarily applied toward living expenses,
coping strategies for unforeseen events (e.g. health issues) education, and livelihood
investmentsThank you
You can also read
