Exploring the impact of socio-demographic characteristics on financial inclusion: empirical evidence from Tunisia
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 20 July 2021
Issue publication date: 18 August 2021
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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).
Research limitations/implications
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.
Originality/value
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.
Keywords
Acknowledgements
Disclosure statement: No potential conflict of interest was reported by the authors.
Citation
Amari, M. and Anis, J. (2021), "Exploring the impact of socio-demographic characteristics on financial inclusion: empirical evidence from Tunisia", International Journal of Social Economics, Vol. 48 No. 9, pp. 1331-1346. https://doi.org/10.1108/IJSE-08-2020-0527
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited