The Nexus of Psychographics, Socio-economic Characteristics and Financial Inclusion in Tanzania

<p>Financial inclusion is one of the essential aspects of the financial system in the present scenario for socioeconomic growth. Understanding financial inclusion drivers is essential in policymaking and formulating an evidencebased strategy for sustainable improvements in financial inclusion. The objective of this paper is to investigate individuals’ psychographic and socioeconomic characteristics as drivers of financial inclusion in Tanzania. A survey approach is applied to collect data and the probit and multivariate probit models are applied for data analysis. The findings show that about 68% of the respondents surveyed have reported access to financial services in Tanzania. There is a significant correlation between individuals’ psychographics and socioeconomic characteristics with financial inclusion. The marginal effect results show that being more educated, older, male, or richer has a positive and significant impact on financial inclusion, and mobile money is found to be a key indicator of financial inclusion in Tanzania. The study supports the argument that particular demographic groups, such as women and young age, should be the focus of strategies in promoting financial inclusion in Tanzania.</p>