Lao PDR Snapshot:

• Year MAP began: 2014
• Adult population: 4.2m
• % adults who have higher education: 7%
• % adults use at least one regulated financial service: 47%
• % adults use unregulated financial services: 60%
• % adults excluded: 25%

Farming is the main source of activity and income for the predominantly rural population of Laos. Cultural issues and lack of information about financial services are major contributors to people not using any formal of financial services. The preferred mechanism for obtaining credit and savings is through family and friends and informal mechanisms through village funds. The uptake of insurance to cover risks is low as people use solidarity networks, village funds and savings for this purpose. The main drivers of financial inclusion are savings and transactions, which includes remittances.