November 4, 2024
Banks Or Buddies - Where Do People Borrow Money From?

When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?

On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.

In these graphics, Visual Capitalist's Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.

Borrowing From Financial Institutions

To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.

In 2021, most individuals in high income economies borrowed money from formal financial institutions.

Country Region Borrowed from a financial institution
Canada High income 81.01%
Israel High income 79.52%
Iceland High income 73.36%
Hong Kong SAR, China High income 70.01%
Korea, Rep. High income 68.64%
Norway High income 66.82%
United States High income 66.21%
Taiwan, China High income 61.95%
Switzerland High income 61.40%
Japan High income 61.19%
New Zealand High income 60.38%
Australia High income 57.29%
Austria High income 56.52%
Italy High income 55.01%
United Kingdom High income 54.98%
Germany High income 54.68%
Ireland High income 54.11%
Denmark High income 53.16%
Finland High income 52.98%
Spain High income 51.92%
Sweden High income 48.69%
Belgium High income 47.98%
France High income 44.37%
Singapore High income 42.82%
Slovenia High income 42.36%
Uruguay High income 42.01%
Brazil Latin America & Caribbean (excluding high income) 40.75%
China East Asia & Pacific (excluding high income) 39.19%
Malta High income 38.95%
Türkiye Europe & Central Asia (excluding high income) 37.84%
Netherlands High income 34.45%
Slovak Republic High income 34.41%
Mongolia East Asia & Pacific (excluding high income) 34.39%
Ukraine Europe & Central Asia (excluding high income) 34.13%
Estonia High income 33.64%
Croatia High income 33.03%
Saudi Arabia High income 32.38%
Poland High income 31.92%
Czech Republic High income 31.33%
Cyprus High income 31.25%
Cambodia East Asia & Pacific (excluding high income) 30.89%
Argentina Latin America & Caribbean (excluding high income) 30.81%
Portugal High income 30.44%
Kazakhstan Europe & Central Asia (excluding high income) 29.76%
Russian Federation Europe & Central Asia (excluding high income) 29.75%
Thailand East Asia & Pacific (excluding high income) 28.26%
Bulgaria Europe & Central Asia (excluding high income) 26.36%
Armenia Europe & Central Asia (excluding high income) 26.17%
Iran, Islamic Rep. Middle East & North Africa (excluding high income) 25.11%
Chile High income 24.20%
Georgia Europe & Central Asia (excluding high income) 23.89%
Ecuador Latin America & Caribbean (excluding high income) 23.23%
Latvia High income 22.74%
United Arab Emirates High income 22.46%
Kenya Sub-Saharan Africa (excluding high income) 22.18%
North Macedonia Europe & Central Asia (excluding high income) 22.10%
Peru Latin America & Caribbean (excluding high income) 21.95%
Dominican Republic Latin America & Caribbean (excluding high income) 21.65%
Bosnia and Herzegovina Europe & Central Asia (excluding high income) 21.30%
Sri Lanka South Asia 21.29%
Namibia Sub-Saharan Africa (excluding high income) 20.97%
Serbia Europe & Central Asia (excluding high income) 20.65%
Greece High income 20.11%
Mauritius Sub-Saharan Africa (excluding high income) 20.09%
Bolivia Latin America & Caribbean (excluding high income) 19.30%
Romania Europe & Central Asia (excluding high income) 19.14%
Hungary High income 18.93%
Uganda Sub-Saharan Africa (excluding high income) 18.62%
South Africa Sub-Saharan Africa (excluding high income) 18.22%
Colombia Latin America & Caribbean (excluding high income) 18.10%
Kyrgyz Republic Europe & Central Asia (excluding high income) 17.73%
Kosovo Europe & Central Asia (excluding high income) 17.61%
Costa Rica Latin America & Caribbean (excluding high income) 17.46%
Philippines East Asia & Pacific (excluding high income) 17.45%
Liberia Sub-Saharan Africa (excluding high income) 15.42%
Bangladesh South Asia 14.22%
Nepal South Asia 14.11%
Malaysia East Asia & Pacific (excluding high income) 13.48%
Albania Europe & Central Asia (excluding high income) 13.39%
Moldova Europe & Central Asia (excluding high income) 13.18%
Indonesia East Asia & Pacific (excluding high income) 12.86%
Tajikistan Europe & Central Asia (excluding high income) 12.43%
Paraguay Latin America & Caribbean (excluding high income) 12.39%
Nicaragua Latin America & Caribbean (excluding high income) 12.19%
Jamaica Latin America & Caribbean (excluding high income) 12.04%
Lithuania High income 11.95%
India South Asia 11.79%
Mali Sub-Saharan Africa (excluding high income) 10.99%
El Salvador Latin America & Caribbean (excluding high income) 10.56%
Panama Latin America & Caribbean (excluding high income) 10.39%
Honduras Latin America & Caribbean (excluding high income) 10.32%
Mozambique Sub-Saharan Africa (excluding high income) 10.27%
Senegal Sub-Saharan Africa (excluding high income) 9.98%
Tunisia Middle East & North Africa (excluding high income) 9.89%
Jordan Middle East & North Africa (excluding high income) 9.86%
Lao PDR East Asia & Pacific (excluding high income) 9.15%
Venezuela, RB Latin America & Caribbean (excluding high income) 8.83%
Benin Sub-Saharan Africa (excluding high income) 8.21%
Malawi Sub-Saharan Africa (excluding high income) 7.99%
Uzbekistan Europe & Central Asia (excluding high income) 7.50%
Togo Sub-Saharan Africa (excluding high income) 7.42%
Ghana Sub-Saharan Africa (excluding high income) 7.40%
Egypt, Arab Rep. Middle East & North Africa (excluding high income) 7.30%
Myanmar East Asia & Pacific (excluding high income) 7.06%
Cameroon Sub-Saharan Africa (excluding high income) 6.99%
Zambia Sub-Saharan Africa (excluding high income) 6.76%
Burkina Faso Sub-Saharan Africa (excluding high income) 6.66%
Nigeria Sub-Saharan Africa (excluding high income) 6.40%
Congo, Rep. Sub-Saharan Africa (excluding high income) 6.19%
Guinea Sub-Saharan Africa (excluding high income) 6.11%
Gabon Sub-Saharan Africa (excluding high income) 5.48%
Morocco Middle East & North Africa (excluding high income) 4.99%
West Bank and Gaza Middle East & North Africa (excluding high income) 4.94%
Tanzania Sub-Saharan Africa (excluding high income) 4.45%
Sierra Leone Sub-Saharan Africa (excluding high income) 4.29%
Cote d'Ivoire Sub-Saharan Africa (excluding high income) 4.10%
Algeria Middle East & North Africa (excluding high income) 3.80%
Iraq Middle East & North Africa (excluding high income) 3.64%
Pakistan South Asia 3.51%
Lebanon Middle East & North Africa (excluding high income) 3.31%
Zimbabwe Sub-Saharan Africa (excluding high income) 2.89%
South Sudan Sub-Saharan Africa (excluding high income) 2.48%
Afghanistan South Asia 2.05%

With 81% of respondents borrowing from financial institutions, Canada tops this list. Meanwhile, Israel (80%), Iceland (73%), Hong Kong (70%), and South Korea (69%) are not far behind.

This is not surprising for richer nations, as financial services in these countries are more available and accessible. This, coupled with higher financial literacy, including a general understanding of interest rates and credit-building opportunities, contribute to the popularity of financial institutions.

Also, it’s worth noting that some countries have cultural practices that factor in. For example, 61% of respondents in Japan used formal financial institutions, which are a more socially acceptable option than asking to borrow money from friends and family (just 6% of people in Japan).

Borrowing from Friends and Family

In contrast, more individuals in lower income economies approached family and friends in order to borrow money.

Afghanistan tops this list with 60% of respondents relying on friends and family, compared to only 2% borrowing money from formal financial institutions.

Country Region Borrowed from family or friends
Afghanistan South Asia 60.18%
Uganda Sub-Saharan Africa (excluding high income) 57.45%
Kenya Sub-Saharan Africa (excluding high income) 54.40%
Namibia Sub-Saharan Africa (excluding high income) 50.25%
Morocco Middle East & North Africa (excluding high income) 48.73%
Nigeria Sub-Saharan Africa (excluding high income) 44.71%
South Africa Sub-Saharan Africa (excluding high income) 44.54%
Iraq Middle East & North Africa (excluding high income) 44.10%
Cameroon Sub-Saharan Africa (excluding high income) 43.49%
Zambia Sub-Saharan Africa (excluding high income) 43.08%
Zimbabwe Sub-Saharan Africa (excluding high income) 42.34%
Guinea Sub-Saharan Africa (excluding high income) 42.04%
Nepal South Asia 41.79%
Jordan Middle East & North Africa (excluding high income) 41.76%
Gabon Sub-Saharan Africa (excluding high income) 41.41%
Liberia Sub-Saharan Africa (excluding high income) 41.37%
Tunisia Middle East & North Africa (excluding high income) 41.05%
Philippines East Asia & Pacific (excluding high income) 40.82%
Türkiye Europe & Central Asia (excluding high income) 40.80%
Iran, Islamic Rep. Middle East & North Africa (excluding high income) 39.80%
Sierra Leone Sub-Saharan Africa (excluding high income) 39.02%
Ghana Sub-Saharan Africa (excluding high income) 38.58%
Egypt, Arab Rep. Middle East & North Africa (excluding high income) 37.75%
Saudi Arabia High income 35.76%
Bangladesh South Asia 35.49%
Mali Sub-Saharan Africa (excluding high income) 35.15%
Burkina Faso Sub-Saharan Africa (excluding high income) 35.14%
Cambodia East Asia & Pacific (excluding high income) 34.85%
Venezuela, RB Latin America & Caribbean (excluding high income) 34.81%
Togo Sub-Saharan Africa (excluding high income) 33.99%
West Bank and Gaza Middle East & North Africa (excluding high income) 33.93%
Thailand East Asia & Pacific (excluding high income) 32.83%
Lao PDR East Asia & Pacific (excluding high income) 32.36%
Moldova Europe & Central Asia (excluding high income) 32.18%
Ukraine Europe & Central Asia (excluding high income) 32.17%
Senegal Sub-Saharan Africa (excluding high income) 31.30%
Armenia Europe & Central Asia (excluding high income) 31.29%
India South Asia 31.02%
Bolivia Latin America & Caribbean (excluding high income) 30.69%
Algeria Middle East & North Africa (excluding high income) 30.52%
Cote d'Ivoire Sub-Saharan Africa (excluding high income) 30.20%
Albania Europe & Central Asia (excluding high income) 30.00%
Bulgaria Europe & Central Asia (excluding high income) 29.99%
Benin Sub-Saharan Africa (excluding high income) 29.33%
Mozambique Sub-Saharan Africa (excluding high income) 29.33%
Tanzania Sub-Saharan Africa (excluding high income) 29.24%
Colombia Latin America & Caribbean (excluding high income) 29.08%
Indonesia East Asia & Pacific (excluding high income) 28.85%
South Sudan Sub-Saharan Africa (excluding high income) 28.84%
Ecuador Latin America & Caribbean (excluding high income) 28.79%
Serbia Europe & Central Asia (excluding high income) 28.49%
Russian Federation Europe & Central Asia (excluding high income) 28.40%
Mongolia East Asia & Pacific (excluding high income) 27.01%
Kyrgyz Republic Europe & Central Asia (excluding high income) 27.01%
China East Asia & Pacific (excluding high income) 26.43%
Honduras Latin America & Caribbean (excluding high income) 26.07%
Greece High income 25.94%
Kosovo Europe & Central Asia (excluding high income) 25.86%
Argentina Latin America & Caribbean (excluding high income) 25.72%
Kazakhstan Europe & Central Asia (excluding high income) 25.64%
Romania Europe & Central Asia (excluding high income) 25.58%
Malawi Sub-Saharan Africa (excluding high income) 25.24%
North Macedonia Europe & Central Asia (excluding high income) 25.14%
Dominican Republic Latin America & Caribbean (excluding high income) 24.70%
Brazil Latin America & Caribbean (excluding high income) 24.66%
Congo, Rep. Sub-Saharan Africa (excluding high income) 24.40%
Lebanon Middle East & North Africa (excluding high income) 24.26%
Nicaragua Latin America & Caribbean (excluding high income) 23.75%
Iceland High income 23.63%
Peru Latin America & Caribbean (excluding high income) 23.34%
United Arab Emirates High income 23.04%
Myanmar East Asia & Pacific (excluding high income) 23.03%
Sri Lanka South Asia 22.53%
Paraguay Latin America & Caribbean (excluding high income) 22.20%
Pakistan South Asia 21.87%
Uzbekistan Europe & Central Asia (excluding high income) 21.53%
Cyprus High income 20.95%
Bosnia and Herzegovina Europe & Central Asia (excluding high income) 20.94%
Chile High income 20.72%
Georgia Europe & Central Asia (excluding high income) 20.61%
Mauritius Sub-Saharan Africa (excluding high income) 20.48%
Costa Rica Latin America & Caribbean (excluding high income) 20.29%
Jamaica Latin America & Caribbean (excluding high income) 20.02%
Tajikistan Europe & Central Asia (excluding high income) 19.86%
Poland High income 19.34%
Norway High income 19.29%
United States High income 18.09%
Uruguay High income 17.60%
Panama Latin America & Caribbean (excluding high income) 17.54%
Denmark High income 17.51%
Croatia High income 17.09%
El Salvador Latin America & Caribbean (excluding high income) 16.78%
Slovenia High income 16.77%
Latvia High income 16.57%
Australia High income 16.44%
Estonia High income 15.74%
Malaysia East Asia & Pacific (excluding high income) 15.44%
Israel High income 15.43%
New Zealand High income 15.19%
Slovak Republic High income 15.02%
Germany High income 15.01%
Austria High income 14.41%
Canada High income 14.00%
Finland High income 13.43%
Czech Republic High income 13.41%
Korea, Rep. High income 13.16%
Malta High income 12.99%
Belgium High income 12.13%
Sweden High income 11.79%
Hungary High income 11.15%
Lithuania High income 10.65%
Spain High income 10.44%
France High income 10.42%
Netherlands High income 10.24%
Ireland High income 9.84%
Taiwan, China High income 9.70%
Portugal High income 8.22%
Hong Kong SAR, China High income 7.59%
Japan High income 6.43%
Switzerland High income 6.10%
United Kingdom High income 5.24%
Italy High income 5.06%
Singapore High income 1.89%

Many individuals in African countries including Uganda (57%), Kenya (54%), Namibia (50%), and Morocco (49%) also are choosing to borrow money from friends and family over financial institutions.

These preferences can be attributed to various factors including a lack of trust in banking and financial institutions, lacking access to such services, or the lack of information about such services if they are available.

And in some societies, borrowing from friends and family can be seen as a cultural norm, especially in places where mutual support and solidarity play a strong role.

What’s Next?

As viewed by the World Bank, financial inclusion is an important foundation of any nation’s development, and it’s also one of the UN’s Sustainable Development Goals. Increasing levels of financial inclusion helps give people access to services like savings plans, credit avenues, and online payments and transactions.

And thanks to commitments from countries and financial systems, global ownership of banking accounts has increased significantly (and been further spurred by the COVID-19 pandemic). According to the Global Findex Database, bank account ownership has risen to 76% in 2021, up from just 51% a decade prior.

However, access to these services is still rife with gaps when it comes to low income nations, low income individuals, and unequal access based on gender. The future of borrowing now relies on how nations deal with these challenges.

Tyler Durden Sat, 04/22/2023 - 23:00

When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?

On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.

In these graphics, Visual Capitalist’s Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.

Borrowing From Financial Institutions

To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.

In 2021, most individuals in high income economies borrowed money from formal financial institutions.

Country Region Borrowed from a financial institution
Canada High income 81.01%
Israel High income 79.52%
Iceland High income 73.36%
Hong Kong SAR, China High income 70.01%
Korea, Rep. High income 68.64%
Norway High income 66.82%
United States High income 66.21%
Taiwan, China High income 61.95%
Switzerland High income 61.40%
Japan High income 61.19%
New Zealand High income 60.38%
Australia High income 57.29%
Austria High income 56.52%
Italy High income 55.01%
United Kingdom High income 54.98%
Germany High income 54.68%
Ireland High income 54.11%
Denmark High income 53.16%
Finland High income 52.98%
Spain High income 51.92%
Sweden High income 48.69%
Belgium High income 47.98%
France High income 44.37%
Singapore High income 42.82%
Slovenia High income 42.36%
Uruguay High income 42.01%
Brazil Latin America & Caribbean (excluding high income) 40.75%
China East Asia & Pacific (excluding high income) 39.19%
Malta High income 38.95%
Türkiye Europe & Central Asia (excluding high income) 37.84%
Netherlands High income 34.45%
Slovak Republic High income 34.41%
Mongolia East Asia & Pacific (excluding high income) 34.39%
Ukraine Europe & Central Asia (excluding high income) 34.13%
Estonia High income 33.64%
Croatia High income 33.03%
Saudi Arabia High income 32.38%
Poland High income 31.92%
Czech Republic High income 31.33%
Cyprus High income 31.25%
Cambodia East Asia & Pacific (excluding high income) 30.89%
Argentina Latin America & Caribbean (excluding high income) 30.81%
Portugal High income 30.44%
Kazakhstan Europe & Central Asia (excluding high income) 29.76%
Russian Federation Europe & Central Asia (excluding high income) 29.75%
Thailand East Asia & Pacific (excluding high income) 28.26%
Bulgaria Europe & Central Asia (excluding high income) 26.36%
Armenia Europe & Central Asia (excluding high income) 26.17%
Iran, Islamic Rep. Middle East & North Africa (excluding high income) 25.11%
Chile High income 24.20%
Georgia Europe & Central Asia (excluding high income) 23.89%
Ecuador Latin America & Caribbean (excluding high income) 23.23%
Latvia High income 22.74%
United Arab Emirates High income 22.46%
Kenya Sub-Saharan Africa (excluding high income) 22.18%
North Macedonia Europe & Central Asia (excluding high income) 22.10%
Peru Latin America & Caribbean (excluding high income) 21.95%
Dominican Republic Latin America & Caribbean (excluding high income) 21.65%
Bosnia and Herzegovina Europe & Central Asia (excluding high income) 21.30%
Sri Lanka South Asia 21.29%
Namibia Sub-Saharan Africa (excluding high income) 20.97%
Serbia Europe & Central Asia (excluding high income) 20.65%
Greece High income 20.11%
Mauritius Sub-Saharan Africa (excluding high income) 20.09%
Bolivia Latin America & Caribbean (excluding high income) 19.30%
Romania Europe & Central Asia (excluding high income) 19.14%
Hungary High income 18.93%
Uganda Sub-Saharan Africa (excluding high income) 18.62%
South Africa Sub-Saharan Africa (excluding high income) 18.22%
Colombia Latin America & Caribbean (excluding high income) 18.10%
Kyrgyz Republic Europe & Central Asia (excluding high income) 17.73%
Kosovo Europe & Central Asia (excluding high income) 17.61%
Costa Rica Latin America & Caribbean (excluding high income) 17.46%
Philippines East Asia & Pacific (excluding high income) 17.45%
Liberia Sub-Saharan Africa (excluding high income) 15.42%
Bangladesh South Asia 14.22%
Nepal South Asia 14.11%
Malaysia East Asia & Pacific (excluding high income) 13.48%
Albania Europe & Central Asia (excluding high income) 13.39%
Moldova Europe & Central Asia (excluding high income) 13.18%
Indonesia East Asia & Pacific (excluding high income) 12.86%
Tajikistan Europe & Central Asia (excluding high income) 12.43%
Paraguay Latin America & Caribbean (excluding high income) 12.39%
Nicaragua Latin America & Caribbean (excluding high income) 12.19%
Jamaica Latin America & Caribbean (excluding high income) 12.04%
Lithuania High income 11.95%
India South Asia 11.79%
Mali Sub-Saharan Africa (excluding high income) 10.99%
El Salvador Latin America & Caribbean (excluding high income) 10.56%
Panama Latin America & Caribbean (excluding high income) 10.39%
Honduras Latin America & Caribbean (excluding high income) 10.32%
Mozambique Sub-Saharan Africa (excluding high income) 10.27%
Senegal Sub-Saharan Africa (excluding high income) 9.98%
Tunisia Middle East & North Africa (excluding high income) 9.89%
Jordan Middle East & North Africa (excluding high income) 9.86%
Lao PDR East Asia & Pacific (excluding high income) 9.15%
Venezuela, RB Latin America & Caribbean (excluding high income) 8.83%
Benin Sub-Saharan Africa (excluding high income) 8.21%
Malawi Sub-Saharan Africa (excluding high income) 7.99%
Uzbekistan Europe & Central Asia (excluding high income) 7.50%
Togo Sub-Saharan Africa (excluding high income) 7.42%
Ghana Sub-Saharan Africa (excluding high income) 7.40%
Egypt, Arab Rep. Middle East & North Africa (excluding high income) 7.30%
Myanmar East Asia & Pacific (excluding high income) 7.06%
Cameroon Sub-Saharan Africa (excluding high income) 6.99%
Zambia Sub-Saharan Africa (excluding high income) 6.76%
Burkina Faso Sub-Saharan Africa (excluding high income) 6.66%
Nigeria Sub-Saharan Africa (excluding high income) 6.40%
Congo, Rep. Sub-Saharan Africa (excluding high income) 6.19%
Guinea Sub-Saharan Africa (excluding high income) 6.11%
Gabon Sub-Saharan Africa (excluding high income) 5.48%
Morocco Middle East & North Africa (excluding high income) 4.99%
West Bank and Gaza Middle East & North Africa (excluding high income) 4.94%
Tanzania Sub-Saharan Africa (excluding high income) 4.45%
Sierra Leone Sub-Saharan Africa (excluding high income) 4.29%
Cote d’Ivoire Sub-Saharan Africa (excluding high income) 4.10%
Algeria Middle East & North Africa (excluding high income) 3.80%
Iraq Middle East & North Africa (excluding high income) 3.64%
Pakistan South Asia 3.51%
Lebanon Middle East & North Africa (excluding high income) 3.31%
Zimbabwe Sub-Saharan Africa (excluding high income) 2.89%
South Sudan Sub-Saharan Africa (excluding high income) 2.48%
Afghanistan South Asia 2.05%

With 81% of respondents borrowing from financial institutions, Canada tops this list. Meanwhile, Israel (80%), Iceland (73%), Hong Kong (70%), and South Korea (69%) are not far behind.

This is not surprising for richer nations, as financial services in these countries are more available and accessible. This, coupled with higher financial literacy, including a general understanding of interest rates and credit-building opportunities, contribute to the popularity of financial institutions.

Also, it’s worth noting that some countries have cultural practices that factor in. For example, 61% of respondents in Japan used formal financial institutions, which are a more socially acceptable option than asking to borrow money from friends and family (just 6% of people in Japan).

Borrowing from Friends and Family

In contrast, more individuals in lower income economies approached family and friends in order to borrow money.

Afghanistan tops this list with 60% of respondents relying on friends and family, compared to only 2% borrowing money from formal financial institutions.

Country Region Borrowed from family or friends
Afghanistan South Asia 60.18%
Uganda Sub-Saharan Africa (excluding high income) 57.45%
Kenya Sub-Saharan Africa (excluding high income) 54.40%
Namibia Sub-Saharan Africa (excluding high income) 50.25%
Morocco Middle East & North Africa (excluding high income) 48.73%
Nigeria Sub-Saharan Africa (excluding high income) 44.71%
South Africa Sub-Saharan Africa (excluding high income) 44.54%
Iraq Middle East & North Africa (excluding high income) 44.10%
Cameroon Sub-Saharan Africa (excluding high income) 43.49%
Zambia Sub-Saharan Africa (excluding high income) 43.08%
Zimbabwe Sub-Saharan Africa (excluding high income) 42.34%
Guinea Sub-Saharan Africa (excluding high income) 42.04%
Nepal South Asia 41.79%
Jordan Middle East & North Africa (excluding high income) 41.76%
Gabon Sub-Saharan Africa (excluding high income) 41.41%
Liberia Sub-Saharan Africa (excluding high income) 41.37%
Tunisia Middle East & North Africa (excluding high income) 41.05%
Philippines East Asia & Pacific (excluding high income) 40.82%
Türkiye Europe & Central Asia (excluding high income) 40.80%
Iran, Islamic Rep. Middle East & North Africa (excluding high income) 39.80%
Sierra Leone Sub-Saharan Africa (excluding high income) 39.02%
Ghana Sub-Saharan Africa (excluding high income) 38.58%
Egypt, Arab Rep. Middle East & North Africa (excluding high income) 37.75%
Saudi Arabia High income 35.76%
Bangladesh South Asia 35.49%
Mali Sub-Saharan Africa (excluding high income) 35.15%
Burkina Faso Sub-Saharan Africa (excluding high income) 35.14%
Cambodia East Asia & Pacific (excluding high income) 34.85%
Venezuela, RB Latin America & Caribbean (excluding high income) 34.81%
Togo Sub-Saharan Africa (excluding high income) 33.99%
West Bank and Gaza Middle East & North Africa (excluding high income) 33.93%
Thailand East Asia & Pacific (excluding high income) 32.83%
Lao PDR East Asia & Pacific (excluding high income) 32.36%
Moldova Europe & Central Asia (excluding high income) 32.18%
Ukraine Europe & Central Asia (excluding high income) 32.17%
Senegal Sub-Saharan Africa (excluding high income) 31.30%
Armenia Europe & Central Asia (excluding high income) 31.29%
India South Asia 31.02%
Bolivia Latin America & Caribbean (excluding high income) 30.69%
Algeria Middle East & North Africa (excluding high income) 30.52%
Cote d’Ivoire Sub-Saharan Africa (excluding high income) 30.20%
Albania Europe & Central Asia (excluding high income) 30.00%
Bulgaria Europe & Central Asia (excluding high income) 29.99%
Benin Sub-Saharan Africa (excluding high income) 29.33%
Mozambique Sub-Saharan Africa (excluding high income) 29.33%
Tanzania Sub-Saharan Africa (excluding high income) 29.24%
Colombia Latin America & Caribbean (excluding high income) 29.08%
Indonesia East Asia & Pacific (excluding high income) 28.85%
South Sudan Sub-Saharan Africa (excluding high income) 28.84%
Ecuador Latin America & Caribbean (excluding high income) 28.79%
Serbia Europe & Central Asia (excluding high income) 28.49%
Russian Federation Europe & Central Asia (excluding high income) 28.40%
Mongolia East Asia & Pacific (excluding high income) 27.01%
Kyrgyz Republic Europe & Central Asia (excluding high income) 27.01%
China East Asia & Pacific (excluding high income) 26.43%
Honduras Latin America & Caribbean (excluding high income) 26.07%
Greece High income 25.94%
Kosovo Europe & Central Asia (excluding high income) 25.86%
Argentina Latin America & Caribbean (excluding high income) 25.72%
Kazakhstan Europe & Central Asia (excluding high income) 25.64%
Romania Europe & Central Asia (excluding high income) 25.58%
Malawi Sub-Saharan Africa (excluding high income) 25.24%
North Macedonia Europe & Central Asia (excluding high income) 25.14%
Dominican Republic Latin America & Caribbean (excluding high income) 24.70%
Brazil Latin America & Caribbean (excluding high income) 24.66%
Congo, Rep. Sub-Saharan Africa (excluding high income) 24.40%
Lebanon Middle East & North Africa (excluding high income) 24.26%
Nicaragua Latin America & Caribbean (excluding high income) 23.75%
Iceland High income 23.63%
Peru Latin America & Caribbean (excluding high income) 23.34%
United Arab Emirates High income 23.04%
Myanmar East Asia & Pacific (excluding high income) 23.03%
Sri Lanka South Asia 22.53%
Paraguay Latin America & Caribbean (excluding high income) 22.20%
Pakistan South Asia 21.87%
Uzbekistan Europe & Central Asia (excluding high income) 21.53%
Cyprus High income 20.95%
Bosnia and Herzegovina Europe & Central Asia (excluding high income) 20.94%
Chile High income 20.72%
Georgia Europe & Central Asia (excluding high income) 20.61%
Mauritius Sub-Saharan Africa (excluding high income) 20.48%
Costa Rica Latin America & Caribbean (excluding high income) 20.29%
Jamaica Latin America & Caribbean (excluding high income) 20.02%
Tajikistan Europe & Central Asia (excluding high income) 19.86%
Poland High income 19.34%
Norway High income 19.29%
United States High income 18.09%
Uruguay High income 17.60%
Panama Latin America & Caribbean (excluding high income) 17.54%
Denmark High income 17.51%
Croatia High income 17.09%
El Salvador Latin America & Caribbean (excluding high income) 16.78%
Slovenia High income 16.77%
Latvia High income 16.57%
Australia High income 16.44%
Estonia High income 15.74%
Malaysia East Asia & Pacific (excluding high income) 15.44%
Israel High income 15.43%
New Zealand High income 15.19%
Slovak Republic High income 15.02%
Germany High income 15.01%
Austria High income 14.41%
Canada High income 14.00%
Finland High income 13.43%
Czech Republic High income 13.41%
Korea, Rep. High income 13.16%
Malta High income 12.99%
Belgium High income 12.13%
Sweden High income 11.79%
Hungary High income 11.15%
Lithuania High income 10.65%
Spain High income 10.44%
France High income 10.42%
Netherlands High income 10.24%
Ireland High income 9.84%
Taiwan, China High income 9.70%
Portugal High income 8.22%
Hong Kong SAR, China High income 7.59%
Japan High income 6.43%
Switzerland High income 6.10%
United Kingdom High income 5.24%
Italy High income 5.06%
Singapore High income 1.89%

Many individuals in African countries including Uganda (57%), Kenya (54%), Namibia (50%), and Morocco (49%) also are choosing to borrow money from friends and family over financial institutions.

These preferences can be attributed to various factors including a lack of trust in banking and financial institutions, lacking access to such services, or the lack of information about such services if they are available.

And in some societies, borrowing from friends and family can be seen as a cultural norm, especially in places where mutual support and solidarity play a strong role.

What’s Next?

As viewed by the World Bank, financial inclusion is an important foundation of any nation’s development, and it’s also one of the UN’s Sustainable Development Goals. Increasing levels of financial inclusion helps give people access to services like savings plans, credit avenues, and online payments and transactions.

And thanks to commitments from countries and financial systems, global ownership of banking accounts has increased significantly (and been further spurred by the COVID-19 pandemic). According to the Global Findex Database, bank account ownership has risen to 76% in 2021, up from just 51% a decade prior.

However, access to these services is still rife with gaps when it comes to low income nations, low income individuals, and unequal access based on gender. The future of borrowing now relies on how nations deal with these challenges.

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