Access to Financial Services

Access to financial services

Access to finance is a serious challenge. Only 1% of rural households have bank accounts. Recent figures suggest that the number of Bank Branches per 100,000 rural adult population is around 0.8, and the percentage of rural households with bank accounts is about 1% (a requirement for obtaining credits and loans by most Banks).

The same fact is actual for insurance, as the prevailing players in the industry have solely focused on the minor segment marginalizing the agriculture sector.

62% of Ethiopians save money, only 26% save formally, while 38% save in informal saving clubs

41% of Ethiopians borrowed money, but only 11% borrowed from financial institutions

58.8 % and 17.5% of account Ownership of individuals in urban and rural areas respectively

39 % of men but only about 23 % of women are financially included

17 % of the poorest have a formal financial account compared to 40.6 % of the wealthier

32% of adults (25+) and 24 % of younger adults have formal accounts

Kifiya’s uncollateralized digital lending platform enables banks to provide credit digitally to previously excluded and underserved populations.

Through risk pooling and loss compensation Kifiya is contributing to the continuity of the economic process.