A mere 16% use traditional banking services – 25% in urban areas, 5% in rural areas and 1% among IDPs. Bank branches are only available in urban centers, which explains the high discrepancies in the penetration rates between urban and rural areas. Another reason is that the poorer segments of the population, especially in rural areas, and displaced populations, rarely possess ID documents, which are needed to open a bank account. Puntland has the highest penetration rate of bank accounts’ owners (19%), while Somaliland ranks last (12%). Within South Central, Banadir and South West are the two Federated Member States with the highest banking penetration rates. The banking services penetration rates suggest that mobile money is a very effective tool for enhancing financial inclusion for the unbanked.