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Financial inclusion: the globally important determinants


  • Ozili, Peterson K


This paper highlights the globally-important determinants of financial inclusion. The determinants identified in this paper are formal account ownership; demand for formal savings; demand for formal borrowings; financial literacy and education; debit and credit cards usage; the need to receive remittances from family and friends; size of the financial system; number of automated teller machines (ATMs); number of bank branch; closeness to a bank; availability and access to mobile phones; availability of digital financial products and services; technology infrastructure; government policy; culture and traditional belief systems; national financial inclusion strategy and implementation; and direct legislation.

Suggested Citation

  • Ozili, Peterson K, 2021. "Financial inclusion: the globally important determinants," MPRA Paper 111342, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:111342

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    References listed on IDEAS

    1. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
    2. Chauvet, Lisa & Jacolin, Luc, 2017. "Financial Inclusion, Bank Concentration, and Firm Performance," World Development, Elsevier, vol. 97(C), pages 1-13.
    3. Chai, Shijun & Chen, Yang & Huang, Bihong & Ye, Dezhu, 2016. "Social networks and informal financial inclusion," RIEI Working Papers 2016-04, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    4. Mr. Adolfo Barajas & Thorsten Beck & Mohammed Belhaj & Sami Ben Naceur, 2020. "Financial Inclusion: What Have We Learned So Far? What Do We Have to Learn?," IMF Working Papers 2020/157, International Monetary Fund.
    5. Shijun Chai & Yang Chen & Bihong Huang & Dezhu Ye, 2019. "Social networks and informal financial inclusion in China," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 529-563, June.
    6. Joseph Boniface Ajefu & Joseph O. Ogebe, 2019. "Migrant remittances and financial inclusion among households in Nigeria," Oxford Development Studies, Taylor & Francis Journals, vol. 47(3), pages 319-335, July.
    7. Pierre Bachas & Paul Gertler & Sean Higgins & Enrique Seira, 2018. "Digital Financial Services Go a Long Way: Transaction Costs and Financial Inclusion," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 444-448, May.
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    Cited by:

    1. Damane, Moeti & Ho, Sin-Yu, 2024. "Effects of financial inclusion on financial stability: evidence from ssa countries," MPRA Paper 120238, University Library of Munich, Germany.

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    More about this item


    financial inclusion; determinants; unbanked adults; access to finance; digital finance; financial literacy;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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