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.
AhmedF., DarA. B., FarooqU., & SharmaR. L. (2023). Do socio-economic factors in the BRICS explain gender gap in financial inclusion?The Indian Economic Journal, 71(2), 386–405.
2.
AllenF., Demirguc-KuntA., KlapperL., & PeriaM. S. M. (2016). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 27, 1–30.
3.
AportelaF. (1999). Effects of financial access on savings by low-income people(Working paper). Massachusetts Institute of Technology (MIT).
4.
AsareS. K., & WrightA. M. (2012). Investors’, auditors’, and lenders’ understanding of the message conveyed by the standard audit report on the financial statements. Accounting Horizons, 26(2), 193–217.
5.
AshrafN., KarlanD., & YinW. (2010). Female empowerment: Impact of a commitment savings product in the Philippines. World Development, 38(3), 333–344.
6.
Asian Development Outlook. (2022). Asian Development Bank.
7.
BiswasG. K. (2023). Financial inclusion and its impact on economic growth: An empirical evidence from South Asian Countries. European Journal of Business and Management Research, 8(4), 163–167.
8.
DarA. B., & AhmedF. (2021). Financial inclusion determinants and impediments in India: Insights from the global financial inclusion index. Journal of Financial Economic Policy, 13(3), 391–408.
9.
Demirgüç-KuntA., & KlapperL. (2013). Measuring financial inclusion: Explaining variation in use of financial services across and within countries. Brookings Papers on Economic Activity, 2013(1), 279–340.
10.
Demirgüç-KuntA., KlapperL. F., & SingerD. (2013). Financial inclusion and legal discrimination against women: Evidence from developing countries(World Bank Policy Research Working Paper (6416)).
11.
EvansO. (2016). Determinants of financial inclusion in Africa: A dynamic panel data approach. University of Mauritius Research Journal, 22, 310–336.
12.
FungáčováZ., & WeillL. (2015). Understanding financial inclusion in China. China Economic Review, 34, 196–206.
13.
GidayH. G. (2023). Financial inclusion and its demand-side determinants: Evidence from Ethiopia. Cogent Economics & Finance, 11(1), 2186031.
14.
HannigA., & JansenS. (2010). Financial inclusion and financial stability: Current policy issues(ADBI Working Paper 259). Asian Development Bank Institute.
15.
HasinaS. (2003). Human development, poverty alleviation and peace in South Asia. South Asian Survey, 10(1), 5–11.
16.
JanaD., SinhaA., & GuptaA. (2024). Determinants of financial literacy and use of financial services: An empirical study amongst the unorganized sector workers in Indian scenario. Iranian Journal of Management Studies, 12(4), 657–675.
17.
JoshiP. D. (2014). Financial intermediation for all: Economic growth and equity. Talk delivered at Dun & Bradstreet Financial Inclusion Conclave, Mumbai, 26.
18.
KempsonE., AtkinsonA., & PilleyO. (2004). Policy level response to financial exclusion in developed economies: Lessons for developing countries. Report of Personal Finance Research Centre, University of Bristol.
19.
KumarN. (2013). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5(1), 4–19.
20.
LenkaS. K., & BarikR. (2018). Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?Financial Innovation, 4(1), 1–19.
21.
ManiM. (2016). Financial inclusion in South Asia—Relative standing, challenges and initiatives. South Asian Survey, 23(2), 158–179.
22.
MehrotraN., PuhazhendhiV., NairG., & SahooB. B. (2009) Financial inclusion: An overview(Occasional paper). Department of Economic Analysis and Research, National Bank for Agriculture and Rural Development (NABARD).
23.
OhiomuS., & Ogbeide-OsaretinE. N. (2019). Financial inclusion and gender inequality reduction: Evidence from sub-Saharan Africa. The Indian Economic Journal, 67(3-4), 367–372.
24.
OmarM. A., & InabaK. (2020). Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis. Journal of Economic Structures, 9(1), 37.
25.
RangarajanC. (2008). Committee report on the financial inclusion. Government of India. Review of Development Finance, 6, 46–57. https://doi.org/10.1016/j.rdf.2016.05.001
26.
RoyM., & ChaterjeeT. B. (2016). An analysis of financial inclusion. Journal of Rural Development, 35(4), 621–644.
27.
SarmaM., & PaisJ. (2011). Financial inclusion and development. Journal of International Development, 23(5), 613–628.
28.
SharmaD. (2016) Nexus between financial inclusion and economic growth: Evidence from the emerging Indian economy. Journal of Financial Economic Policy, 8(1), 13–36.
29.
SinghD., & StakicN. (2020). Financial inclusion and economic growth nexus: Evidence from SAARC countries. South Asia Research, 41(2), 238–258. https://doi.org/10.1177/0262728020964605
30.
ThomasA. E., BhasiM., & ChandramouliR. (2017). Financial accessibility and economic growth-evidence from SAARC countries. Contemplations on new paradigms in finance. Directorate of Public Relations and Publications, CUSAT, 32–52.
31.
World Bank. (2016). Global economic prospects, January 2016: Spillovers amid weak growth. The World Bank.
32.
World Bank. (2018). World development report 2019: The changing nature of work. The World Bank.
33.
World Bank. (2020). Financial inclusion. The World Bank Group.
34.
ZinsA., & WeillL. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6, 46–57.
