World Bank: 77% of Moroccan Adults Borrow from Family, Not Banks

Titled "The Global Findex Database 2021, Financial Inclusion, Digital Payments, and Resilience in the Age of Covid-19," the World Bank report indicates that 77% of Moroccans (adults) tend to borrow money from their family or friends. Only about 5% of lenders turn to formal credit institutions to obtain loans, an additional 5% opt for semi-formal credit institutions, and more than 30% turn to other sources, including borrowing from friends and family.

The proportion of adults with a bank account in Morocco is 44% in 2021 compared to 29% in 2017. This percentage has also increased among women, from 25% in 2017 to 33% in 2021. In Morocco, 19% of adults who do not do business with banks attribute this to religion. The main reason for the low rate of financial inclusion in developing economies is the lack of money, the report notes. More than 60% of respondents confirm this. For nearly 35% of respondents, this choice is explained by the high cost of financial services. About 23% of respondents cite a "lack of trust" to justify their reluctance to turn to financial institutions to obtain a loan.