Who are the Missing Middle? Who are the missing middle? The missingle middle are the estimated 3.9 billion people who are above the global poverty line but are not included in the mainstream credit system. Because they are usually unscorable by traditional credit models, they are forced to rely on high-priced credit. In developed nations, they are likely to be the young, the elderly, ethnic minorities, or women. Where are the missing middle? The missing middle are located in every nation in the world. The bulk are in developing nations, though even in advanced economies, substantial numbers of citizens remain excluded from the financial mainstream. What are the costs of being in the missing middle? There are real costs associated with being in the missing middle. The main source of asset building for much of the world's population is access to credit, either in the form of buying a home or starting a small business. According to the Brookings Institution, an individual borrower in the United States can save $40,000 to $360,000 over the course of a career by entering the financial mainstream and opening a simple checking or savings account, cutting out high-priced lenders. How can we incorporate the missing middle in the financial mainstream? PERC believes in using the power of information to extend affordable credit to the missing middle. In developed countries, this involves increasing the amount of information reported. In developing nations, this involves helping to develop financial infrastructure. For more information:

• Alternative Data Initiative -- PERC project on using nonfinancial information to increase credit access
• Information-Led Development -- PERC project on developing financial services infrastructure as a means to economic development