Paper short abstract:

This study using World Bank and CGAP database examines extent of financial access in the South Asian countries. The countries included are Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka, and India. We also examine digitisation of financial services in the region.

Paper long abstract:

Financial access is gradually being recognised as an important input to economic development. An inclusive financial sector which provides access to various financial products and services also can contribute to sustainable economic development. This study using World Bank and CGAP database examines the extent of financial access in the South Asian countries. Our objective in this study is to examine financial access of countries within the South Asia region (Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka, and India). We also examine digitisation of financial services in the region. Due to data limitations, the study excludes Bhutan, Afghanistan and Maldives from the analysis and restricts to major countries in the region- Bangladesh, Nepal, Pakistan, Sri Lanka, and India. This region was chosen as it is fast growing, yet has high level of poverty and low human capital development. Further, huge demand for finance in South Asia and its lack of accessibility has been noted by other studies. Our study builds two sets of financial access indices covering banks and non-banks including microfinance separately. The results of the study show that India ranks highest among all the South Asian countries.