The recent report by the Economist Intelligence Unit’s (EIU) 2019 Global Microscope on Financial Inclusion ranks India amongst the top nations in terms of a conducive environment for financial inclusion. The research aimed to assess the enabling environment across five categories in 55 countries, highlighting India’s impressive role.
The Global Microscope and its Scope
The EIU is the research and analysis division of The Economist Group, which includes the popular Economist newspaper. From its London-based office, EIU conducts broad-ranging studies that shed light on various global issues.
One such study is the Global Microscope, which evaluates the environment for financial inclusion across diverse categories. This measurematic categorization includes Government and Policy Support Stability and Integrity, Products and Outlets, Consumer Protection, and Infrastructure.
The 2019 edition of the report added a new dimension for assessment, introducing 11 gender-focused indicators that measured financial inclusion for both genders.
Major Findings of the 2019 Global Microscope Report
From this year’s findings, overall conditions for financial inclusion have improved globally. However, specific countries like India, Colombia, Peru, Uruguay, and Mexico emerged as leaders with the most favourable climates for inclusive finance.
Despite these general improvements, it was seen that only a third of the countries incorporate a gender approach in their financial inclusion strategies. Even fewer countries have set clear, gender-specific objectives.
| Country | Rank |
|---|---|
| India | 5 |
| Colombia | 1 |
| Peru | 2 |
| Uruguay | 3 |
| Mexico | 4 |
Financial Inclusion Progress in India
In India, substantial strides have been made to foster an environment conducive to financial inclusion. The Reserve Bank of India (RBI) has prepared a draft known as the National Strategy for Financial Inclusion designed to deepen the coverage of financial services.
The strategy, anticipated to be finalized in 2019, will lay down principles for a five-year period. To achieve this, the RBI has set up a high-level committee tasked with reviewing the current status of digitisation and creating a medium-term strategy to increase digital payments.
Breaking new grounds, the RBI released the Enabling Framework for Regulatory Sandbox (RS) in August 2019. This RS provides fintech startups with a test-bed to trial their innovative products and services live. This holistic approach to improving both traditional and digital financial services is what positioned India strongly in the recent EIU ranking.
