Understanding the drivers of financial inclusion in South Africa
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Understanding the drivers of financial inclusion in South Africa | |
| Creator | Mhlanga, David Dunga, Steven H. Moloi, Tankiso | |
| Description | Orientation: Financial inclusion is becoming one of the attractive topics at the global level with policymakers, development partners, governments and financial institutions developing interest in understanding it more deeply.Research purpose: The study sought to establish the drivers of financial inclusion in South Africa with a focus on factors that influences ownership of an investment account.Motivation for the study: Motivated by the increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study interrogated the factors that influence households to have an investment account.Research approach/design and method: As the dependent variable of financial inclusion was binary, the logistic regression was used to estimate the drivers of financial inclusion. The variable assumed two values 0 and 1, where 1 represents access to an investment account and 0 otherwise.Main findings: Using the logit model, the study discovered that financial inclusion is driven by age, education level, the total salary proxy of income, race, and marital status.Practical/managerial implications: The differences in the probability of demand for financial products and services amongst the different races mean that products and services tailor-made to satisfy the needs of the different races, for coloured and black people these products and services should be designed to improve financial inclusion amongst them.Contribution/value-add: The study managed to discover the factors that influences households to have an investment account in South Africa. | |
| Publisher | AOSIS | |
| Date | 2021-05-31 | |
| Identifier | 10.4102/jef.v14i1.594 | |
| Source | Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 8 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/594/1249
https://jefjournal.org.za/index.php/jef/article/view/594/1250
https://jefjournal.org.za/index.php/jef/article/view/594/1252
https://jefjournal.org.za/index.php/jef/article/view/594/1253
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