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A Review of Determinants of Financial Inclusion

Author

Listed:
  • Sanderson Abel

    (Senior Economist at Bankers Association of Zimbabwe, Zimbabwe)

  • Learnmore Mutandwa

    (Lecturer at Midlands State University, Zimbabwe)

  • Pierre Le Roux

    (Nelson Mandela University, South Africa)

Abstract
The role of financial inclusion in the economic and financial discourse has gained a lot of interest both among academia and practitioners. The discussion has further received attention from development partners such as the World Bank, International Monetary Fund, G20 and AFDB among others. Taking cue from developments elsewhere Zimbabwean government commissioned the national financial inclusion strategy. The objective of the current study is to evaluate determinants of financial inclusion in Zimbabwe. The study established that age, education, financial literacy, income, and internet connectivity are positively related to financial inclusion. On the other hand the documentation required to open bank accounts and the distance to the nearest access point are negatively related to financial inclusion. The study recommends that the government should put in place policies that encourage financial service providers to set up their operations closer to the people or ensure they adopt technologies that ensure financial services are more accessible such as agency and mobile banking. The government should therefore encourage the use of KYC lite accounts to ease documentation requirements without compromising anti-money laundering framework which can destabilise the financial system.

Suggested Citation

  • Sanderson Abel & Learnmore Mutandwa & Pierre Le Roux, 2018. "A Review of Determinants of Financial Inclusion," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 1-8.
    • Handle: RePEc:eco:journ1:2018-03-1
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial Inclusion; Financial Discourse; Financial System;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F30 - International Economics - - International Finance - - - General
    • 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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