Jordan suffering from low financial inclusion, study shows

Jordan

Published: 2017-08-09 13:51

Last Updated: 2024-03-28 05:23


(Image: JSF)
(Image: JSF)

Jordan has a “relatively low” rate of financial inclusion, with 24.6 percent of Jordanians over the age of 15 without bank accounts, a recent study by The Jordan Strategy Forum (JSF) found.

The JSF has released a study titled “On the Financial Inclusion in Jordan: In a Nutshell” outlining people’s access to financial services in the Kingdom and recommendations to improve the current situation, a JSF statement said.

According to a World Bank definition, "financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way."

The “most disappointing” findings from the JSF study is the gender disparity of financial inclusion, with only 15.5 females, in comparison to 33.3 males, having bank accounts.

In comparison to other countries, the level of financial inclusion in Jordan is “very discouraging,” the report states.
The currently existing 24.6 percent of inclusion in Jordan is notably lower than those existing in countries such as Finland (100 percent), Bahrain (81.9 percent), Saudi Arabia (69.4 percent), and Turkey (56.7 percent).

In actual fact this low proportion is close to only those in Palestine / West Bank and Gaza (24.2 percent), and higher than in Egypt (13.2 percent).

International data has shown that access to financial services enhances the well-being of families, reduces income inequality, and promotes entrepreneurship and real economic growth, which prompted the World Bank to establish the “Global Financial Inclusion Index (Global Findex)” to measure the quality of financial services for citizens, the statement said.

The JSF’s study indicated that education, gender and income are significant factors in affecting financial inclusion in Jordan.

Results also indicated that it is in the interest of the banking system to promote financial inclusion at the national level, as it supports not only individual customers, but also the performance of the banks themselves, according to the statement.