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What Factors Are Limiting Financial Inclusion and Development in Peru? Empirical Evidence

Author

Listed:
  • Sergio Luis Náñez Alonso

    (DEKIS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain)

  • Javier Jorge-Vazquez

    (DEKIS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain)

  • Lieslie Gallegos Arias

    (Vulnerable Populations Research Group, San Pablo Catholic University, Arequipa 04001, Peru)

  • Noelia Muñoz del Nogal

    (ESODS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain)

Abstract

Despite recent efforts in Peru to boost financial inclusion, significant issues of exclusion persist, especially among vulnerable groups. This article aims to identify and analyze areas at risk of financial exclusion using a multifaceted methodology: the Financial Access Survey (FAS) for comparative analysis (Peru versus other countries and regions), geographical-distribution analysis, and the Access to Cash Index (ACI) methodology. Findings reveal that remote rural areas of Peru, particularly those inland, as well as mountainous or jungle regions, face higher risks of financial exclusion due to low digital literacy, limited digital banking usage, sparse branch and ATM networks, and inadequate transportation infrastructure. These insights can inform targeted public policies to enhance financial inclusion in Peru, as well as the development.

Suggested Citation

  • Sergio Luis Náñez Alonso & Javier Jorge-Vazquez & Lieslie Gallegos Arias & Noelia Muñoz del Nogal, 2024. "What Factors Are Limiting Financial Inclusion and Development in Peru? Empirical Evidence," Economies, MDPI, vol. 12(4), pages 1-22, April.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:4:p:93-:d:1376689
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    References listed on IDEAS

    as
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    4. Mylonidis, Nikolaos & Chletsos, Michael & Barbagianni, Vanessa, 2019. "Financial exclusion in the USA: Looking beyond demographics," Journal of Financial Stability, Elsevier, vol. 40(C), pages 144-158.
    5. Helmut Stix, 2020. "A spatial analysis of access to ATMs in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/20, pages 39-59.
    6. Helmut Stix, 2020. "The Austrian bank branch network from 2000 to 2019 from a spatial perspective," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 40, pages 87-101.
    7. João Cadete de Matos & Luís D'Aguiar, 2018. "Assessing financial inclusion in Portugal from the central bank's perspective," IFC Bulletins chapters, in: Bank for International Settlements (ed.), The role of data in supporting financial inclusion policy, volume 47, Bank for International Settlements.
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