Examining the Determinants of Financial Inclusion in South Asian Countries

Financial inclusion is an important aspect of achieving economic growth in South Asia. The present study is offered to examine the key factors of financial inclusion in South Asian countries. The study considered the 2017 World Bank Global Findex database for the analysis. The probit regression model is used to find the relationship between financial inclusion and its determinants for individual country level as well as for the group of South Asian countries. The results have shown that socio-economic variables like age, gender, education, income and workforce are important factors of financial inclusion. The higher income quintiles, upper education classes and workforce participation have a higher probability of owning bank accounts and greater chances of accessing formal savings and borrowings. Female households are still vulnerable in the process of financial inclusion in South Asian countries. The study suggested that financial inclusion can be enhanced with higher education, higher income and more workforce participation. JEL Codes: G21, D14, C25