Financial Inclusion Index: A Comprehensive Measure
Mughees Tahir Bhalli
& Mala Raghavan
Published: December 2020
Existing indices that are used to measure financial inclusion are not comprehensive. This study reports on the development and testing of a comprehensive measure of financial inclusion. The measure was applied to 189 countries from 2010 to 2015. Among the top 50 highly financially inclusive countries 34% are from Europe and Central Asia. In contrast, only 4% of the countries are from South Asia. The resulting index is multidimensional, uses the maximum available information, satisfies important mathematical properties and can be used to compare the level of financial inclusion over time and across economies.