Having savings in a public or private financial institution can help a person become more financially secure. Savings can also help households bounce back after natural disasters or invest in climate-resilient technology, providing a buffer against the effects of climate change and environmental degradation. Households with savings under the formal financial system also benefit from government regulations and insurance that can protect their assets, helping ensure financial stability.
However, trust in financial institutions and governments runs low in some countries. In these areas, leaders must earn the public’s trust by building a fair, resilient financial system. Increasing the number of adults with formal savings will require easier access to financial services, a growth in government cash transfer policies, and expanded economic opportunities.
According to the World Bank, 29% of adults worldwide saved formally at a financial institution in 2021, a slight increase from 27% in 2017. To reach 100% coverage by 2030, the share will need to grow eleven times faster than the historic rate.