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Financial Inclusion Report 2023: Nepal’s Progress Towards Financial Accessibility
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Kathmandu, March 10, 2023 - The latest report on financial inclusion in Nepal reveals that despite a decline in the total number of Banking and Financial Institutions (BFIs), the country has made significant progress in expanding access points and increasing financial services.
Key Findings
- The total number of BFIs has decreased from 222 in 2015 to 125 as of mid-November 2022.
- Despite this decline, the number of microfinance institutions (MFIs) has increased, aiming to provide financial access to low-income households, women, and micro and small enterprises.
Financial Access Points
- As of mid-July 2022, BFIs had opened 11,528 branches in 752 out of 753 local levels.
- The number of ATMs has expanded from 1,985 in mid-July 2017 to 4,602 in mid-July 2022, an increase of 131% over five years.
Distribution of Financial Access Points
- Rural municipalities have roughly 16% of the total branches.
- Sub-metropolitan and metropolitan cities account for the rest.
- 20.35% of the population uses ATMs, with 22.47% being male and 16.53% female.
Microfinance Institutions (MFIs)
- As of mid-July 2022, the total number of MFI members reached 5.93 million, an increase of 213% from 2016.
- The total savings membership increased by 233%, and the total number of borrowers saw a 264% increase.
Financial Cooperatives
- According to the economic survey 2022, there were around 30,879 cooperatives operating in Nepal with over 7.3 million members.
Challenges Ahead
- While progress has been made in expanding financial services, there is still a disparity in access to quality financial services between rural and urban areas.
Recommendations
- Policymakers should prioritize expanding financial services to rural areas.
- Promote the use of digital channels for financial transactions.
- Enhance financial literacy among the population.
Figures
- FIGURE 1: Number of branches of BFIs in each province (2022)
- FIGURE 2: Number of ATMs in Nepal (2017-2022)
Contact
For more information or to schedule an interview with the author, please contact [Name], [Email], [Phone number].