Assessing the socio-economic and policy drivers that increase financial inclusion of ethnic and gender minorities in South Africa

This paper examines the effectiveness of public policy in enhancing financial inclusion in South Africa, paying particular attention to gender and ethnicity. Using a logistic regression model on a decade-long dataset of household surveys, we identify key socio-economic and demographic determinants of financial inclusion. Income, education and age emerge as significant factors, with individuals having a tertiary education 31% more likely to have a bank account than those with a lower education level. Notably, the gender gap has narrowed, with women 3.8% more likely than men to have a bank account. Contrary to previous studies, our findings highlight the strong impact of public policy in improving financial access. However, ethnic disparities persist, as individuals from a Black ethnic background remain significantly less likely to have bank accounts. By bringing to the forefront gender and ethnicity in the discourse on South African financial inclusion, this study offers a novel perspective to inform future policies aimed at equitable financial access.