A recent study conducted in seven Tunisian governorates has highlighted the prevalence of cash transactions in the country's financial landscape. The study, which targeted young people and low-income women, found that 98% of respondents prefer cash payments. This dominance of cash transactions is a significant challenge to the country's efforts to promote financial inclusion. The study's findings suggest that despite the growth of new payment methods, many people in these regions still rely heavily on cash.
The study also revealed that only 18% of respondents have a formal bank account. This is particularly concerning among young people, with 70% of those surveyed not having any type of bank account. However, the study noted that 50% of low-income women use postal services, highlighting the importance of these services in providing access to financial transactions. The low level of formal bank account ownership is a significant obstacle to financial inclusion.
The study highlighted significant regional disparities in access to financial services. The seven governorates covered in the study account for more than half of Tunisia's land area but have only around 200 bank branches, representing about 12% of the country's total. This limited access to formal banking services makes it difficult for people in these regions to access basic financial services.
The study's findings also emphasized the need to promote digital financial services, such as mobile payments and wallets. The Central Bank of Tunisia has expressed its commitment to promoting financial inclusion through innovation, but the study's results suggest that simply introducing new technologies is not enough. The challenge is to encourage people to use these services and to understand why they prefer cash transactions.
The study's authors noted that the results are specific to the targeted population and do not represent the national rate of bank account ownership. The study surveyed 2,150 people and conducted 14 focus groups, providing a comprehensive understanding of the financial habits of young people and low-income women in these regions.
The dominance of cash transactions has significant implications for the country's economy and financial sector. The study's findings suggest that there is a need for a more nuanced approach to promoting financial inclusion, one that takes into account the specific needs and preferences of different populations. This may involve developing targeted financial products and services that meet the needs of young people and low-income women.
The study's results have important implications for policymakers, financial institutions, and other stakeholders seeking to promote financial inclusion in Tunisia. By understanding the reasons for the dominance of cash transactions and the limited use of formal banking services, policymakers can develop more effective strategies to promote financial inclusion and reduce poverty.
Key points
- 98% of respondents in the study prefer cash payments.
- Only 18% of respondents have a formal bank account.
- 50% of low-income women use postal services for financial transactions.
