This post is by Freny Fernandes from Visual Capitalist
When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?
On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.
In these graphics, Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.
Borrowing From Financial Institutions
To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.
In 2021, most individuals in high income economies borrowed money from formal financial institutions.
|Country||Region||Borrowed from a financial institution|
|Hong Kong SAR, China||High income||70.01%|
|Korea, Rep.||High income||68.64%|
|United States||High income||66.21%|
|Taiwan, China||High income||61.95%|
|New Zealand||High income||60.38%|
|United Kingdom||High income||54.98%|