Impact of financial inclusion and globalization on environmental quality: evidence from G20 economies

Access to banking and financial services is defined by various international organizations as essential to ensure the development of countries and regions. However, this access is not always guaranteed, even in developed countries. Our study focuses on analyzing the current situation of several rural and depopulated areas of Castilla y León (Spain) in terms of access to banking services and cash. For this purpose, an initial spatial analysis has been carried out to compute the access to these services measured in kilometers needed to travel to access them. Subsequently, we included, as a possible solution, the access to these financial services through their implementation (as a cash back point) in the extensive Spanish network of pharmacies. The results obtained in the spatial analysis show that the introduction of the network of pharmacies as a point of access to cash means a significant reduction in the distance to travel in municipalities in rural and unpopulated areas in order to access cash. In the case of the province of Avila the distance would be reduced by 55%, in the province of Segovia the distance would be reduced by 38.5%, in the province of Soria the distance would be reduced by 20%, in the province of Palencia the distance would be reduced by 22%; and finally in the province of Zamora the distance would be reduced by 33%. 

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Solutions to Financial Exclusion in Rural and Depopulated Areas: Evidence Based in Castilla y León (Spain)

Abstract The main objective of this paper is to examine the drivers, barriers of financial inclusion, and saving and credit behaviour in Ethiopia. We used the World Bank 2017 Findex database to carry out logit estimations. We found that being educated, richer, a man, and older associated with greater level of financial inclusion with a strong influence of income and education. We found that the existing gender gaps in the financial inclusion is mainly due to women exclusion from the non-financial sector. While younger and poor adults do not access formal accounts due to involuntary exclusion (distance to the nearest financial access point, affordability, and lack of documentation), older and richer individuals are constrained by voluntary barriers (lack of money, family member has account). Women are less likely to save for farm or business and old age security purposes, while educated individuals in the wealthiest 20% quintile save for old age security purposes. The rich and the poor seek formal credit primarily for farm/business and asset purchase. Our work confirms that the determinants, barriers, saving, and credit behaviour are different across individual characteristics. We strongly recommend that policies that aim to foster financial inclusion should target the vulnerable (the poor, young, less educated, and women) population groups. Authorities and policymakers should strive to improve women participation in the formal real sector of the economy, financial institutions should adopt technologies such as mobile banking and mobile money to ensure the accessibility of financial services.

https://www.tandfonline.com/doi/pdf/10.1080/23322039.2022.2071385?needAccess=true

Understanding financial inclusion in Ethiopia

PurposeMost research studies have examined financial inclusion from a supply-side perspective, which measures access and usage of formal financial services by banking outreach indicators, the number of borrowers and the availability of other financial services in a given area. However, this approach is often insufficient to nuance the degree of financial exclusion faced by segments of the population. This study's overall objective is to empirically examine demand-side determinants of financial inclusion.Design/methodology/approachThis research examines the impact of these variables on the level to which an individual is financially included. Notably, the metric employed goes beyond the basic ownership of a bank account and measures the usage of financial services rather than just access. Quantitative data were collected through self-administered surveys targeting 456 individuals in Egypt in order to test the proposed hypotheses. Three different econometric models were tested using regression analysis.FindingsThe findings imply an insignificant relationship between financial literacy and financial inclusion. Results suggest that financial exclusion is associated with low trust in financial institutions, low-income level, low education level and being elderly, with a more substantial influence on income and education.Originality/valueEgypt suffers from a lack of up-to-date demand-side data and data available at hand allow us to know very little about the factors underpinning financial inclusion. This study is contributing demand-side, up-to-date primary data, that provides multiple insights for Egypt regarding the subject, which helps provide answers and suggestions to policy implications.

Financial inclusion demand-side determinants: analysis from Egypt

Abstract Financial inclusion is a cornerstone for economic growth. However, the area is not well explored in the developing world. Therefore, this paper is motivated to examine the drivers, barriers and motivations associated with financial inclusion in Ethiopia. We used formal accounts, formal savings, and formal credits as financial inclusion indicators and applied a probit regression model using data from the World Bank’s 2017 Findex database. The result of the study showed that the determinants, barriers, saving and credit motivations are different across individual characteristics. Involuntary exclusion (such as distance to financial services and lack of documentation) and voluntary exclusion (lack of funds, a family member has an account,) are significant barriers to formal account ownership. The study also found that the motives for using financial accounts for saving and lending differ among people with different sociodemographic characteristics. To promote financial inclusion, the author suggests that the concerned body take actions toward social inclusion (the poor, women and the youngst) and improve financial education . To enhance further adoption and expansion of financial technologies such as mobile banking and mobile money, there should be mechanisms to ensure the accessibility and usage of financial services.

https://doi.org/10.1080/23311975.2023.2167291

Financial inclusion drivers, motivations, and barriers: Evidence from Ethiopia

This paper aim to fill the gaps by looking for the determinants and barriers related to financial inclusion. This study assesses the effect of socio-demographic variables on the use of formal financial inclusion services.,This article examines the barriers to formal financial inclusion, focusing on saving and credit strands. The authors propose the probit model, allowing distinguishing the outcome variable into three categories: Formal inclusion, informal inclusion and financial exclusion. The authors apply this model to the Findex 2017 survey data.,Estimation results propose that the trust to financial institutions, the distance to banks, the lack of documentation and the service costs are the main barriers, but these barriers affect the probability of using formal financial services differently according to the types of financial services (saving or credit).,To advance the formal financial inclusion in Tunisia, the authors call for continuing promoting financial literacy among adults and the young population, which helps them understand the benefits of using formal financial services. Financial literacy throws in constructing the individual trust toward the financial sector in a country that experienced several decades of political and economic instability.,Financial inclusion promotes growth through a broadening of the system and technology that can be a major catalyst for greater financial inclusion. It helps in the overall economic development of the underprivileged population and contributes to poverty reduction. It can also enhance the security of payments, and thus lower the incidence of associated crime.

Mouna Amari

Papers

Exploring the impact of socio-demographic characteristics on financial inclusion: empirical evidence from Tunisia