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Factors that Matter for Financial Inclusion: Evidence from Peru

Author

Listed:
  • Noelia Camara
  • Ximena Pena
  • David Tuesta

Abstract

This study comprises a quantitative approach to the determinants of financial inclusion in Peru based on micro-data from surveys. Significant correlations are used to identify those socioeconomic characteristics that may affect financial inclusion (or exclusion) of households and enterprises. We also analyse the sensitivity to some barriers on the part of individuals who do not use banking services. The results show that the traditionally more vulnerable groups (women, individuals living in rural areas and young people) are those with the greatest difficulties in accessing the formal financial system. When it comes to financial products, loans and mortgages appear to be better drivers for financial inclusion than saving products. For enterprises, formality and education stand out as significant factors for financial inclusion. Finally, for individuals excluded from the financial system, factors such as age, gender, education and income level seem to affect perception of the barriers to financial inclusion. The identification of individual characteristics that could affect financial inclusion provides useful empirical evidence for designing policies that promote more inclusive financial systems.

Suggested Citation

  • Noelia Camara & Ximena Pena & David Tuesta, 2014. "Factors that Matter for Financial Inclusion: Evidence from Peru," Working Papers 1409, BBVA Bank, Economic Research Department.
  • Handle: RePEc:bbv:wpaper:1409
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    Cited by:

    1. Richard M. Kiai & Stephen I. Ng’ang’a & Josphat K. Kinyanjui & David N. Kiragu, 2016. "The Influence of Demographic Characteristics on Investment on Financially Included Youth in Nyeri and Kirinyaga Counties," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 196-204, October.
    2. repec:kap:jfamec:v:38:y:2017:i:4:d:10.1007_s10834-017-9531-x is not listed on IDEAS
    3. Mariano Bosch & Angel Melguizo & Ximena Peña & David Tuesta, 2015. "Savings under formal and informal conditions," Working Papers 1519, BBVA Bank, Economic Research Department.
    4. Evans, Olaniyi, 2016. "Determinants of Financial Inclusion in Africa: A Dynamic Panel Data Approach," MPRA Paper 81326, University Library of Munich, Germany.
    5. David Tuesta & Gloria Sorensen & Adriana Haring & Noelia Camara, 2015. "Financial inclusion and its determinants: the case of Argentina," Working Papers 1503, BBVA Bank, Economic Research Department.
    6. Mariano Bosch & Angel Melguizo & Ximena Peña & David Tuesta, 2015. "El ahorro en condiciones formales e informales," Working Papers 1523, BBVA Bank, Economic Research Department.
    7. Fred Gichana Atandi & Henry M. Bwisa & Maurice Sakwa, 2016. "Technological Innovation as entrepreneurial Determinant affecting Savings Mobilization among Micro and Small Enterprises in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(3), pages 178-199, March.
    8. Fred Gichana Atandi & Henry M. Bwisa & Maurice Sakwa, 2016. "Influence of Entrepreneurial Customer Experience on Savings Mobilization among Micro and Small Enterprises," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(4), pages 1-22, April.
    9. Llanto, Gilberto M. & Rosellon, Maureen Ane D., 2017. "What Determines Financial Inclusion in the Philippines? Evidence from a National Baseline Survey," Discussion Papers DP 2017-38, Philippine Institute for Development Studies.

    More about this item

    Keywords

    Financial Inclusion; economic development; personal finance;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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