Rural Or Urban Residence
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Rural or Urban Residence

Whether an individual lives in a rural or urban area has a significant impact on her interaction with the formal financial sector. Only 22 percent of rural residents in low income economies have a formal account, compared to 35 percent among their urban counterparts. However, rural residents in developing economies are equally likely to borrow money from formal financial institution perhaps owing to the prevalence of community-based lending organizations in some economies.

Adults who borrowed from a formal financial institution in the past 12 months, by rural/urban residence (in %)
Adults who saved at a formal financial institution in the past 12 months, by rural/urban residence (in %)
Adults with an account at a formal financial institution by rural/urban residence (in %)
Source: Demirguc-Kunt and Klapper, 2012
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Source: Demirgunc-Kunt and Klapper, 2012