Evolution of financial inclusion in Latin America

Abstract

PurposeThis paper analyses the evolution of the financial inclusion and its main determinants in seven Latin American countries.Design/methodology/approachThe database used is the Global Findex from the World Bank for the latest data released that includes the years 2011 and 2014. The variables used are formal financial accounts, formal savings and formal credit as proxies of financial inclusion for the years of study. Moreover, the use of debit and credit cards is considered. The methodologies applied are the mean difference tests, in order to contrast the hypotheses of the inclusion evolution and binary probit regressions models.FindingsThe results of the analysis show that there is a positive evolution in the use of financial instruments in the countries of the sample, especially in the use of formal accounts. On the other hand, considering the characteristics of the individuals, age, level of education and income positively affect their financial inclusion.Originality/valueThere are no similar works for the region of study that allow us to evaluate the evolution of financial inclusion considering the variables selected in the literature. It is possible to clearly fulfil the proposed objective, highlighting the importance of implementing financial inclusion policies in view of the low percentage of use of the instruments in the analyzed countries.

Una propuesta de medición de la inclusión financiera en México

“…Adicionalmente, si bien no se observa una relación clara de la inclusión financiera con la edad, se observa una relación negativa con el estado civil, y una asociación positiva con la condición de ocupar la jefatura del hogar y el número de dependientes. Por otra parte, se observa una fuerte asociación positiva entre una mayor escolaridad y la inclusión financiera (Martinez et al, 2020). Mientras que un 57.4% de la población en el último quintil tiene educación terciaria, apenas un 4.1% de la población en el primer quintil tiene educación terciaria.…”

The Informal City: Exploring the Variety of the Street Vending Economy

“…Despite the expansion of MFIs across the global south and the important growth in the use of financial instruments in Latin America [45], the financial exclusion of the poor continues to be a significant problem [31]. By 2017 there were 1.7 billion unbanked adults worldwide, representing 31% of the adult population.…”

Does the Quality of Institutions Matter for Financial Inclusion? Cross Country Evidence

“…There are also studies that have investigated determinants of financial inclusion. Using 2017 Global Findex database, mean difference tests and binary probit regressions models, Martinez et al, (2020) examine the key determinants of access to finance in Latin America. Their study findings reveal that household income, education and age positively affect financial inclusion.…”