This Ayeyarwady region dashboard on financial inclusion gives a % high-level overview of the adult % Kachin population uptake and usage Sagaing ( of financial products and % services. The dashboard % Shan also describes the adult Chin ( ( perceptions, attitudes % and needs within the % Magway Mandalay ( Ayeyarwady region. (
% % Rakhine Nay Pyi Taw ( ( %
Demographics Bago % ( Kayah ( Ayeyarwady is home to % about 4 million adults % Ayeyarwady Kayin or close to 12% of the ( ( adult population in % % Myanmar. The largest Yangon ( Tanintharyi concentration of adults % ( are in Yangon (17%) and Mon Mandalay (13%). ( Adult population by State/Region
% Married % Divorced/ % Separated % Ayeyarwady % % Widowed % Myanmar % % Single % Marital Urban status Rural Rural vs. urban
% 18 - 24 years % Male Ayeyarwady Female 25 - 34 years % % Male Myanmar % Female 35 - 44 years % % 45 - 54 years % % % 55 - 64 years % % % 65 years % and older % Age (%) % Male vs. female 1USD = ± MMK1,320 % % 58 No income % % % OF $1—$100 % are dependent on % AYEYARWADY % 41 savings for their $101—$200 % HOUSEHOLDS % INVOLVED IN farming inputs $201—$300 % FARMING 31% borrow from % $301—$400 % of these MADB Ayeyarwady % $401—$500 % Myanmar % $501—$1000 % 1% claim not to use any inputs Refused % Monthly income Household involvement in farming (%) do not know % USD (%)
Collection centres % % Middleman/agents 18 % OF FARMER Wholesaler % HOUSEHOLDS ARE Directly to consumers MOSTLY SUBSISTENCE % OR LARGELY FARMING Processing centres % FOR OWN Other (Specify) % CONSUMPTION Retailer Markets for % commercial farmers
% % % % % % % %
% % % % % % % %
Farming Self- Formally- Formally- Informally- Remittances Other No & fishing employed employed employed employed dependent income income (Government) (Private) Main source of income (%) 83’ 75’ Ayeyarwady 73’ 69’ Myanmar 58’ 53’ 54’ 52’ 49’ 43’ 45’ 34’ 34’ 38’ 26’ 24’ 11’ 10’
Grocery Public Bank ATM Post Market Medical MFI Mobile store access office facility money Mean time taken to reach destination (minutes - dry season) Myanmar AYEYARWADY
1USD = ± MMK1,320 % % 58 No income % % % OF $1—$100 % are dependent on % AYEYARWADY % HOUSEHOLDS 41 savings for their $101—$200 % farming inputs % INVOLVED IN % $201—$300 % Dealing with finances FARMING 31% borrow from % is stressful/a burden % $301—$400 % of these MADB Ayeyarwady % You adjust your expenses % $401—$500 % Myanmar according to your income % % $501—$1000 % A budget helps to keep track of % 1% claim not to use any inputs Refused % Monthly income how much money you can spend % % do not know USD (%) % Household involvement in farming (%) You often have to spend more Ayeyarwady money than you have available % Myanmar Collection centres % You keep track of your % Adult income and expenditure % % Middleman/agents population 18 % on a monthly basis Agreeing with OF FARMER Wholesaler statement (%) % MILLION HOUSEHOLDS ARE Directly to consumers % MOSTLY SUBSISTENCE Unplanned expenses % Processing centres OR LARGELY FARMING % % e.g. new clothes Ayeyarwady FOR OWN Other (Specify) % % Irregular/unreliable income Myanmar CONSUMPTION % Retailer Markets for % commercial farmers % % Not enough income % 59 Unexpected events OF AYEYARWADY % % % % % % % % % /have to pay for necessities ADULTS HAVE % % Other DEPLETED HOUSEHOLD % % FUNDS FOR FOOD AND % % % % % % % % % Don’t know Reasons for not OTHER CRITICAL LIVING Skipping meal % planning (% of NEEDS BEFORE THEIR those not planning) NEXT INCOME
Poverty symptoms reduced % Farming Self- Formally- Formally- Informally- Remittances Other No & fishing employed employed employed employed dependent income income nationally between 2013 and (Government) (Private) 2018 (22% to 18%). % Main source of income (%) Ayeyarwady citizens have 83’ % Skipping treatment 75’ a higher than average Ayeyarwady 73’ 69’ 62 prevalence of medical, hunger Myanmar 58’ 52’ OF ADULTS HAVE HAD A 53’ 54’ 45’ 49’ and educational symptoms 43’ 38’ MAJOR EXPENSE OR EVENT 34’ 34’ due to a lack of money. 26’ 24’ 11’ 10’ % % % % % Skipping school Grocery Public Bank ATM Post Market Medical MFI Mobile Borrow/ Rely on Savings store access office facility money credit family/friends % of households experiencing Mean time taken to reach destination (minutes - dry season) Mechanism for paying for major expense (%) poverty symptom Main Regulated/ Financial Main Focus unregulated Uptake Product Provider(s) Ayeyarwady adults use different financial mechanisms (both formal and informal), ranging from borrowing and pawning Financial MADB, MFI, Formal % Credit Cooperatives MEDICAL LIVING EDUCATION of goods to saving and investing, to meet their top three Access EXPENSES EXPENSES EXPENSES needs which are medical, living, and education expenses. Inclusion Savings groups, Informal % Savings Products jewellery, livestock FinScope measures the perceived ownership/ MADB, MFI, Ayeyarwady usage of financial products. If an adult Formal % Credit Cooperatives Myanmar (18 years or older) believes to currently Depth Formally % have or use a product or service from an Multiple Informal Savings groups, products % Savings served % institution (e.g. MADB) or family/friend, the only jewellery, livestock % Banked individual is classified as accessing financial % Formal % services, either formally or informally. This Payments Bank Other formal % classification may deviate from supply-side (non-bank) % % information (on formal product reporting) % Savings groups, Urban Informal Savings Informal % as one adult may have multiple products jewellery Area % with similar institutions (e.g. savings Excluded % Formal % account with two banks). FinScope only Credit MFI counts this adult once although having Financial access overall (with overlaps) (%) Savings groups, multiple products in the access strand. The Rural Informal % Savings jewellery, livestock ‘banked’ category has precedence over other formal channels which has precedence MADB, MFI, Formal % Credit over informal channels. Hence, Finscope Cooperatives Banked % Other formal Credit Savings Payments Insurance and supply-side may differ when reporting Savings groups, % % Male Informal % Savings on adult perceptions versus accounts in jewellery % the corresponding supply side analysis. Gender % % % % % % % % % % Formal % MFI Credit Formal Overall 48% of Myanmar adults are Informal Savings % formally served while 50% are informally Overview % groups, Informal Savings of financial Excluded served. Comparatively, 63% of Ayeyarwady Female jewellery access (%) % % adults are formally served, the highest of all % % % % % % % states and regions. Ayeyarwady has 58% Financial access (overall) Cross-use between bank products and services, Informal of adults served informally - one of the other formal (non-bank) and informal products Formal (regulated) vs. informal usage of financial products (%) highest in the country. The region has 39% Bank access is much higher in Ayeyarwady together with a high other formal (non- of its households with a formal account bank) product uptake. Overall, Ayeyarwady has higher than national average formal compared to 24% nationally. financial access predominantly led by bank product uptake. Higher access to banks, Formal % formal economic activity, stability and general perceptions may explain the higher savings % Ayeyarwady % than average formal product uptake. Banked Myanmar %
% % Other formal % % % % % Ayeyarwady (non-bank) % One household % % % % % one account (%) Ayeyarwady Myanmar Informal % Myanmar % Ayeyarwady adult product ownership At home % Other formal Financial access Banked Informal only Excluded % or usage is largely driven by the MADB (non-bank) strand (%) Not saving % (30%), MFIs (28%) and Cooperatives % (10%). MADB (28%) and MFI (24%) Savings overall (with overlaps) (%) 16 credit are the major drivers for formal % OF AYEYARWADY ADULTS CLAIM % % % credit product uptake (31%). % % % % TO BELONG TO INFORMAL % % % % % MADB MFI Cooperatives % % % % Ayeyarwady SAVINGS GROUPS.
% % % % % % % % Ayeyarwady % % % % Myanmar Myanmar % % % Female Male Rural Urban Penetration levels Savings Savings other Savings Savings Do not Saving - formal product up-take (%) Ayeyarwady access strand by gender (%) Ayeyarwady access strand by location (%) at bank formal (non-bank) informal at home save strand (%) Main Regulated/ Financial Main Focus unregulated Uptake Product Provider(s) Ayeyarwady adults use different financial mechanisms (both formal and informal), ranging from borrowing and pawning MADB, MFI, Formal % Credit Cooperatives MEDICAL LIVING EDUCATION of goods to saving and investing, to meet their top three Access EXPENSES EXPENSES EXPENSES needs which are medical, living, and education expenses. Savings groups, Informal % Savings Products jewellery, livestock
MADB, MFI, Ayeyarwady Formal % Credit Formal vs. informal usage of financial products Cooperatives Myanmar Depth Formally % Multiple Informal Savings groups, Ayeyawady adults have a high use of formal products with only products % Savings served % only jewellery, livestock credit being largely formal (49%). Informal savings are the most popular informal % Banked mechanism followed closely by informal credit mechanisms. % Formal % Payments Bank Other formal % (non-bank) % Informal credit comprises mostly of current borrowing from money lenders, % % Savings groups, employers, and getting goods in advance from shop/store. Informal insurance Urban Informal Savings Informal % jewellery largely comprises of community-based groups or solidarity systems and funeral Area % Excluded % or burial societies referred to as Nar yay athin. Informal savings comprises village Formal % Credit MFI savings groups such as Su Jay or Su-mae, savings in livestock and jewellery. Financial access overall (with overlaps) (%) Savings groups, Rural Informal % Savings jewellery, livestock
MADB, MFI, Formal % Credit Cooperatives Banked % Other formal Credit Savings Payments Insurance Savings groups, % % Male Informal % Savings jewellery % Gender % % % % % % % % % % Formal % MFI Credit Formal Informal Savings Overview % % groups, Informal Savings of financial Excluded Female jewellery access (%) % % % % % % % % % Cross-use between bank products and services, Informal other formal (non-bank) and informal products Formal (regulated) vs. informal usage of financial products (%)
Formal % Savings and Investments savings % Ayeyarwady % Banked Myanmar A significant proportion of Ayeyarwady adults save mainly through %
% % Other formal % informal mechanisms (38%) compared to a lower national average % % % % Ayeyarwady (non-bank) % of 34%. In Ayeyarwady, like most other states and regions, most One household % % % % % adults depend on informal savings. This is that even though the formal one account (%) Ayeyarwady Myanmar Informal % Myanmar savings(16%) uptake is higher compared to other states and regions. % At home % Other formal Financial access Banked Informal only Excluded % (non-bank) strand (%) Not saving % Savings overall (with overlaps) (%) 16%
% OF AYEYARWADY ADULTS CLAIM % % % % % % % TO BELONG TO INFORMAL % % % % % MADB MFI Cooperatives % % % % Ayeyarwady SAVINGS GROUPS.
% % % % % % % % Ayeyarwady % % % % Myanmar Myanmar % % % Female Male Rural Urban Penetration levels Savings Savings other Savings Savings Do not Saving - formal product up-take (%) Ayeyarwady access strand by gender (%) Ayeyarwady access strand by location (%) at bank formal (non-bank) informal at home save strand (%) Borrowing and Credit Formal % credit % Ayeyarwady leads the nation in borrowing from the formal sector(mainly % Banked % Ayeyarwady MADB). Informal borrowing is much higher (31%) than the national average Myanmar Other formal % (22%) which is mainly driven by money lenders. (non-bank) % % % % % % % Informal % Ayeyarwady % % % % % Family/ % Myanmar friends % Not % borrowing % Credit Credit at other Credit Credit with Do not Credit at bank formal (non-bank) informal family/friends borrow strand (%) Credit overall (with overlaps) (%)
% Ayeyarwady % % % %
Myanmar % Almost one in two adults in % % % % Ayeyarwady are aware of % % % % % mobile money, similar to the Ayeyarwady % % % % % Mobile Aware of Registered with Used Banked and Unbanked and national average. Myanmar money mobile money mobile money mobile money remit via bank remit via bank Have one Have/use two Have/use three Informal Do not use any regulated regulated products regulated products product(s) only formal/informal product product(s) Remittances and mobile money Formal % % Product depth strand (%) remittances Ayeyarwady % Bank remittances – both banked and unbanked users Banked % Myanmar (over the counter) – constitute one of the two main Other formal % % % % % % % % drivers of formal remittances. (non-bank) Remittances overall Male % (with overlaps) (%) % % % % % Informal % Female % Family/friends % Have one Have/use two Have/use three Have/use four Informal Do not use any % Not remitting % regulated regulated regulated regulated product(s) formal/informal product products products products only product(s)
% % %% % Remittances through bank Ayeyarwady product depth strand by gender(%) Ayeyarwady Remittances through other formal (non-bank) Remittances through informal channels % % % % % Myanmar Remittances through family/friends Remittances Do not remit strand (%) % Transactional 24 23% % Insurance and risk management Insured % Ayeyarwady Other formal % Myanmar The most common income security risks encountered (non-bank) % by Ayeyarwady adults in the past 12 months were % Insurance overall Informal % major illness (31%) and natural disasters or crop failure (with overlaps) (%) Remittances Savings Insured 21% 56% (18%). The main coping mechanisms for both risks is % through others 26% 57% pawning goods, borrowing money, using formal account % balance or savings. Not insured %
% % % Formal insurance is largely driven by social Ayeyarwady security benefit while informal insurance is Ayeyarwady % % % % 9% 77% Myanmar largely driven by informal funeral funds and Myanmar 21% 55% solidarity systems. Insurance Credit Insured from other Insurance from Insure through Not Insurance Landscape formal (non-bank) informal sources others insured strand (%) of access Product Depth Strand
The product depth strand classifies adults with their current number of different regulated (formal) products across the four main categories of credit, savings, payments (transactions and remittances), and insurance. The last two tiers are those only using informal (unregulated) products and the excluded (those that do not have/use any financial product/service).
% % % % % Ayeyarwady % % % % % Myanmar
Have one Have/use two Have/use three Informal Do not use any regulated regulated products regulated products product(s) only formal/informal product product(s) Product depth strand (%)
% % % % % % Male % % % % % Female
Have one Have/use two Have/use three Have/use four Informal Do not use any regulated regulated regulated regulated product(s) formal/informal product products products products only product(s)
Ayeyarwady product depth strand by gender(%)
Landscape of Access % Transactional 24 23% The Landscape of Access is used to illustrate the extent to which financially included individuals have/ Remittances Savings use financial products/ 21% 56% services (excluding 26% 57% those borrowing from family/friends and those who save at home/ saving in secret place). The population here Ayeyarwady Myanmar 9% 77% would include those 21% 55% formally included as well Insurance Credit Landscape informally included. of access Key fi ndings
» Ayeyarwady has higher than national average formal fi nancial access in 2018 at 63% compared to 48% (being the highest). Formal fi nancial access is driven mainly by MADB credit (30%), in line with the national average, MFIs, and formal remittance channels.
» Ayeyarwady has high uptake of informal fi nancial products compared to the national average (58% versus 50%) which is largely driven by borrowing from money lenders, village savings groups and informal funeral funds/solidarity systems.
» Ayeyarwady has a lower proportion of adults (19%) dependent only on informal mechanisms as compared to the national average (22%). 16% of urban adults are informally served while rural adults sit at 20%, indicating a higher dependency on informal services alone.
» Most adults only use one formal product (37%) with less using two or three regulated products (25%).
» The proportion of households with one account is at 39% for Ayeyarwady which is fi fteen percentage points above the national average of 24% and also the highest of all states and regions.
» Urban and rural adults in Ayeyarwady are equally formally included (62%). A higher excluded population is in urban areas (22%) versus rural areas (18%).
Note to Reader: The data displayed depicts the understanding, perceptions and responses to questions of the surveyed adult population asked by well-trained enumerators. The dashboard refl ects the demand-side data on fi nancial inclusion for understanding consumer perceptions and behaviour. Disparities emerging between the FinScope fi ndings and supply-side are due to measurement differences, duplication, literacy, awareness, etc. Some of these disparities are explored for follow-up investigation in the MAP Diagnostic Report. Some graphs are not meant to be added due to multiple mention/overlaps. Some of the numbers in the graphics may add to less or more than 100% due to rounding off.