Household usage of financial services around the world and Ukraine
Under the Findex dataset, paper suggests a comparative assessment of the usage of financial accounts by groups (developing countries, high-income countries, and Ukraine). Authors outlines the barriers, which arise while using financial services and both socio-economic (income level, employment), and...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
NGO “Ukrainian Institute for Social Research after Olexander Yaremenko”
2020-12-01
|
| Series: | Український соціум |
| Subjects: | |
| Online Access: | https://ukr-socium.org.ua/archive/no-4-75-2020/household-usage-of-financial-services-around-the-world-and-ukraine/ |
| _version_ | 1811170764998574080 |
|---|---|
| author | Shapoval Yu. I. |
| author_facet | Shapoval Yu. I. |
| author_sort | Shapoval Yu. I. |
| collection | DOAJ |
| description | Under the Findex dataset, paper suggests a comparative assessment of the usage of financial accounts by groups (developing countries, high-income countries, and Ukraine). Authors outlines the barriers, which arise while using financial services and both socio-economic (income level, employment), and demographic characteristics (gender, age) of users. The increase of account holders, who make payments using mobile phones and the Internet, was marked. Simultaneously, women and poorer users have less access to these technologies, both among the banked and unbanked population. In contrast to world indicators in Ukraine, the level of financial account ownership is the same for both women and men, but there is a gap between richer and poorer, and a gap across the active labour force. Having analysed the unbanked population’s causes and characteristics, Ukrainians’ distrust of financial institutions was a significant barrier to account ownership. An overview of the indicators of financial account usage to make public payments, receive wages in the private sector, settlements with business (utility payments, domestic remittances, payments from individual entrepreneurs) is under consideration. The intensification of digital payments in Ukraine is observed in comparison with the majority of developing countries. The holders use debit cards more often in developing countries as well as in high-income countries and Ukraine. It is highlighted that financial account ownership does not indicate the population’s addiction to use it to accumulate savings. In general, the level of financial inclusion from the demand side is growing globally, and faster in developing countries, including Ukraine, due to the outspread of mobile phones and the Internet. There is more active usage of financial services in high-income countries, despite inequality in age, gender, employment. Although Ukraine usage indicators correspond to the average, the level lags far behind the indicators of high-income countries. It has been revealed that people in high-income countries owning financial account are more likely to be economically active, to save and borrow from financial institutions than those living in developing countries, who prefer informal ways of saving and lending. A low level of penetration of deposits and loans among individuals was noted alongside activation of non-cash payments. It is substantiated that the high level of financial inclusion of the population depends not only on the possession of a financial account but also on its usage mechanisms. The ways of increasing the use of financial services are identified, such as mobile payments, digitalisation of private and public payments, and an increase in financial literacy. |
| first_indexed | 2024-04-10T17:02:02Z |
| format | Article |
| id | doaj.art-9f48ab1cc93d4aa8b6c9e9b9168e5c32 |
| institution | Directory Open Access Journal |
| issn | 1681-116X 2518-735X |
| language | English |
| last_indexed | 2024-04-10T17:02:02Z |
| publishDate | 2020-12-01 |
| publisher | NGO “Ukrainian Institute for Social Research after Olexander Yaremenko” |
| record_format | Article |
| series | Український соціум |
| spelling | doaj.art-9f48ab1cc93d4aa8b6c9e9b9168e5c322023-02-06T10:39:13ZengNGO “Ukrainian Institute for Social Research after Olexander Yaremenko”Український соціум1681-116X2518-735X2020-12-01475345610.15407/socium2020.04.034Household usage of financial services around the world and UkraineShapoval Yu. I.0https://orcid.org/0000-0001-9965-5522SO "Institute for Economics and Forecasting, National Academy of Sciences of Ukraine"Under the Findex dataset, paper suggests a comparative assessment of the usage of financial accounts by groups (developing countries, high-income countries, and Ukraine). Authors outlines the barriers, which arise while using financial services and both socio-economic (income level, employment), and demographic characteristics (gender, age) of users. The increase of account holders, who make payments using mobile phones and the Internet, was marked. Simultaneously, women and poorer users have less access to these technologies, both among the banked and unbanked population. In contrast to world indicators in Ukraine, the level of financial account ownership is the same for both women and men, but there is a gap between richer and poorer, and a gap across the active labour force. Having analysed the unbanked population’s causes and characteristics, Ukrainians’ distrust of financial institutions was a significant barrier to account ownership. An overview of the indicators of financial account usage to make public payments, receive wages in the private sector, settlements with business (utility payments, domestic remittances, payments from individual entrepreneurs) is under consideration. The intensification of digital payments in Ukraine is observed in comparison with the majority of developing countries. The holders use debit cards more often in developing countries as well as in high-income countries and Ukraine. It is highlighted that financial account ownership does not indicate the population’s addiction to use it to accumulate savings. In general, the level of financial inclusion from the demand side is growing globally, and faster in developing countries, including Ukraine, due to the outspread of mobile phones and the Internet. There is more active usage of financial services in high-income countries, despite inequality in age, gender, employment. Although Ukraine usage indicators correspond to the average, the level lags far behind the indicators of high-income countries. It has been revealed that people in high-income countries owning financial account are more likely to be economically active, to save and borrow from financial institutions than those living in developing countries, who prefer informal ways of saving and lending. A low level of penetration of deposits and loans among individuals was noted alongside activation of non-cash payments. It is substantiated that the high level of financial inclusion of the population depends not only on the possession of a financial account but also on its usage mechanisms. The ways of increasing the use of financial services are identified, such as mobile payments, digitalisation of private and public payments, and an increase in financial literacy.https://ukr-socium.org.ua/archive/no-4-75-2020/household-usage-of-financial-services-around-the-world-and-ukraine/demandfinancial inclusionuse of financial servicesfinancial accountmobile moneypopulation |
| spellingShingle | Shapoval Yu. I. Household usage of financial services around the world and Ukraine Український соціум demand financial inclusion use of financial services financial account mobile money population |
| title | Household usage of financial services around the world and Ukraine |
| title_full | Household usage of financial services around the world and Ukraine |
| title_fullStr | Household usage of financial services around the world and Ukraine |
| title_full_unstemmed | Household usage of financial services around the world and Ukraine |
| title_short | Household usage of financial services around the world and Ukraine |
| title_sort | household usage of financial services around the world and ukraine |
| topic | demand financial inclusion use of financial services financial account mobile money population |
| url | https://ukr-socium.org.ua/archive/no-4-75-2020/household-usage-of-financial-services-around-the-world-and-ukraine/ |
| work_keys_str_mv | AT shapovalyui householdusageoffinancialservicesaroundtheworldandukraine |