The book, Finance for All, presents first efforts at developing indicators illustrating that financial access is quite limited around the world and identifies barriers that may be preventing small firms and poor households from using financial services.

Based on this research, the report derives principles for effective government policy on broadening access. The report's conclusions confirm some traditional views and challenge others. For example, recent research provides additional evidence to support the widely-held belief that financial development promotes growth and illustrates the role of access in this process. Improved access to finance creates an environment conducive to new firm entry, innovation, and growth.

However, research also shows that small firms benefit the most from financial development and greater access-both in terms of entry and seeing their growth constraints relaxed. Hence, inclusive financial systems also have consequences for the composition and competition in the enterprise sector.

This report reviews and synthesizes a large body of research, and provides the basis for sound policy advice in the area of financial access. The findings in this report also underline the importance of investing in data collection: continued work on measuring and evaluating the impact of access requires detailed micro data both at the household and enterprise level.

Download Finance for All? Policies and Pitfalls in Expanding Access

PDF format, 3MB, 268Pages.

Finance for All? is a much needed report on the state of access to finance around the world. It provides sensible measures of access and offers sound policy advice, including the caution that access to finance is much more than simply access to credit. It is a must-read for policy makers, activists, academics, and anyone interested in development.

RAGHURAM G. RAJAN
Eric J. Gleacher Distinguished Service Professor of Finance, University of Chicago, and former Economic Counselor and Director of Research, International Monetary Fund

The revolution in financial access has been driven by bankers, activists, donors, and governments. Research has lagged behind, but the next steps will require hard-headed analysis about what has worked and where to focus innovation. Finance for All? gathers lessons from a growing body of new research and presents it sharply. The arguments and evidence will inform and provoke readers, and will surely frame coming debates.

JONATHAN MORDUCH
Professor of Public Policy and Economics, New York University, Director, The Financial Access Initiative, and Co-author of The Economics of Microfinance

Finance for All? represents a vigorous and broad review of the existing academic research and current practice on the important subject of access to financial services. The report is a carefully crafted analysis that sets forth the current status of empirical research, describes a variety of best practices, and identifies crucial issues that must be addressed if poor and low income people and micro and small enterprises are to have access to a broad range of financial services on a sustainable basis. This compelling report will surely provide a useful tool for policy makers and other decision makers in designing financial systems that work for the poor.

RICHARD WEINGARTEN
Executive Secretary, United Nations Capital Development Fund (UNCDF), and Chairman, United Nations Advisors Group on Inclusive Financial Sectors

This study will be a classic in its field. It makes a great contribution to the problem of making finance available to all. Covering not only policy problems, but also the institutional side and the political economy of reform, this study provides comprehensive data to back up the theory and analysis.

ANDREW SHENG
CHAIRMAN, Hong Kong Securities and Futures Commission, and former Deputy Chief Executive, Hong Kong Monetary Authority

This excellent report documents how limited access to finance is in many poor countries and analyzes why this occurs. Policies based on the insights developed provide a real chance of improving the situation. The report is a major contribution to an important area that has not received the attention it deserves up to now.

FRANKLIN ALLEN,
Nippon Life Professor of Finance and Economics, The Wharton School of the University of Pennsylvania

Visit Finance for All World Bank's Web Page

November 13, 2007 – Between 50 and 80 percent of adults in many developing countries have inadequate access to financial services, finds a new World Bank policy research report entitled “Finance for All? Policies and Pitfalls in Expanding Access”. Failure to provide more households and small and medium enterprises with the financial services they need acts as a brake on development.

While noting the microfinance industry’s progress in delivering credit to poor people, the report calls for a broader financial strategy that delivers services to all excluded people and firms. Inclusive financial systems ultimately benefit the poorest people and the smallest firms the most, by creating more jobs, raising incomes, and generating more opportunities for small businesses, the report says....

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