National financial inclusion demand side survey

The Maldives Monetary Authority recently announced the commencement of a National Financial Inclusion Demand Side Survey, a household-level individual survey conducted to gather data to formulate the National Financial Inclusion Strategy (NFIS) for the Maldives. This national diagnostic exercise is being carried out to gain in-depth information on key dimensions of the financial inclusion measurement framework, namely access, usage and quality of financial services. 

An integral process of developing a NFIS is to gather crucial data on the current status of, and the challenges to ensuring, financial inclusion, which will help identify the goals and targets and approaches to achieve policy objectives. The commenced demand side survey will collect data from both users and non-users of financial products and services, facilitating policy makers to assess the current situation in the Maldives, and to identify opportunities and challenges to achieve inclusion policy objectives. Data gathered will assist the government formulate policies to alleviate poverty and reduce income and gender gaps, which eventually contributes to inclusive growth. At present, there is no formal unified national plan or strategy to promote financial inclusion in the Maldives, and demand-side surveys are a critical instrument to measure status, and to set a baseline for use in policy making initiatives. 

Survey methodology

A national representative sample of 1,500 individuals, 18 years and above, will be interviewed for the survey. The sample is stratified according to the population level of the atolls and individual islands and includes a total of 63 islands from 12 atolls, including the Greater Malé Region. Out of the 1,500 individuals, 44 percent of respondents will be from the Greater Malé Region and 56 percent from the Atolls. 

This survey covers the key areas of:

Financial inclusion in the Maldives

The Maldives has shown impressing results in terms of access, with 85 percent of the adult population having bank accounts. Use of mobile payments and internet banking has also shown exponential growth over the past few years. However, there are gaps to be bridged in terms of usage and the provision of financial efficiency in an equitable manner, hence the need for a unified effort from the financial sector at large will be crucial in ensuring that this endeavour is a success. 

Who is involved?

FJS Consulting Pvt Ltd, a local consultancy firm, will be conducting the survey on behalf of MMA. The Alliance for Financial Inclusion, of which the Maldives is a primary member, is also providing technical assistance for the survey.

The pandemic has, of course, had an impact in terms of implementation delays, given travel restrictions. With many restrictions now lifted, the survey is expected to be completed by April 2022, with an ambitious estimate that the strategy will be finalised by the end of the year.

The economy has experienced upheavals at different levels over the past two years, and it is paramount that recovery efforts are well-informed and better executed to ensure economic resilience in the face of future challenges. The survey findings will feed into these efforts, and assist in ensuring informed decision making for recovery.