Enhancing financial capability and inclusion in Morocco : a demand-side assessment (English)

The World Bank Group, at the request of the Moroccan Central Bank (Banque Al-Maghrib BAM), completed a demand-side assessment on financial capability and inclusion in Morocco. This report is based on a nationally representative financial capability and... See More + The World Bank Group, at the request of the Moroccan Central Bank (Banque Al-Maghrib BAM), completed a demand-side assessment on financial capability and inclusion in Morocco. This report is based on a nationally representative financial capability and inclusion survey, the first of its kind in Morocco and the MENA region. The engagement provides an important new data set to measure the state of financial inclusion in Morocco and is an important tool to advance policy reform needed to develop a more inclusive financial sector in Morocco. The report finds that while the state of financial inclusion in Morocco is well above the average level for the Middle East and North Africa, there are sharp variations in the use of formal financial services across different population segments. The approximately 13 million financially excluded adults in Morocco those who use no formal financial products or services - are disproportionately female, poor, and living in rural areas. The survey results further suggest that lack of financial knowledge is an important barrier that prevents people from using financial products that could potentially benefit them. Specifically, Moroccans who tap into informal sources, or those who do not save or borrow at all are found to be significantly less aware of various financial institutions and their products than those who save and borrow from formal sources. Key findings and recommendations presented in this report cover 4 main areas: 1. Financial Inclusion, 2. Financial Capability, 3. Relationship between Financial Inclusion and Capability, and 4. Financial Consumer Protection. The remaining chapters are structured as follows. Chapter 1 explores the financial inclusion landscape in Morocco. Chapter 2 gives an overview of Moroccans' levels of financial capability, in particular about their financial knowledge, attitudes and behaviors. The relationship between financial capability and inclusion is discussed in chapter 3. The last chapter investigates if the products which financially included individuals use are effectively meeting their needs.  See Less -