The impact of financial inclusion on mental health

Abstract

This paper examines the impact of financial inclusion on the mental health of heads of household in Nigeria. The study employed data from the 2015/2016 Nigerian General Household Survey (GHS), matched with georeferenced data concerning financial services obtained from the Insight2Impact (i2i) GIS interface. The results indicate that financial inclusion has a strong positive impact on mental health. The study used a robust instrumental variable method, in which a household's distance from the nearest financial institution was used as the instrument for financial inclusion. In addition, it identified the potential channels through which financial inclusion can influence mental health, including: (1) food expenditure; (2) remittances; and (3) risk-coping mechanisms. The findings of this study reinforce growing evidence for the benefits of financial inclusion for alleviating depression symptoms.

<p>Effects of Financial Inclusion on Access to Emergency Funds for Healthcare in the Kingdom of Saudi Arabia</p>

“…Nevertheless, the result might partially be related to the findings in Nigeria where it was established that financial inclusion might enable access to insurance facilities as well as helping families to avoid reliance on burdensome coping strategies. 6 Because families may want to avoid reliance on burdensome coping strategies, they might want to borrow from financial institutions. In the Saudi Arabian economy, this might be much easier since loans from formal institutions do not attract interest, as prescribed by the Islamic banking principles, hence making borrowing cheaper.…”

“…5 However, financial hardship, for instance, through lack of financial inclusion, might affect the drive towards UHC because, in order to attain UHC, people need to have both financial and health access. 6 Financial hardship is one critical outcome of paying for health services and medicine out-of-pocket (OOP) at the point of use. People experience financial hardship when they make formal and informal OOP payments for healthcare services at the point of use that exceed their ability to pay.…”

“…5 However, financial hardship, for instance, through lack of financial inclusion, might affect the drive towards UHC because, in order to attain UHC, people need to have both financial and health access. 6 …”

“…29 Second, the increasing OOP burden, 30 , 31 despite the KSA’s free at the point of use healthcare, introduces another puzzle that might undermine the potential benefits of financial inclusion. Financial inclusion enables households to access proper formal funds and insurance facilities, as well as to avoid reliance on burdensome coping strategies 6 such as selling off assets like land and livestock, to mention just a few. 32 To the authors’ knowledge, this is the first study to link financial inclusion to financial hardship in accessing healthcare in the KSA.…”

Financial inclusion, mobile banking, informal finance and financial exclusion: micro-level evidence from Morocco

“…Empirical results of a logistic model showed that financial inclusion is correlated with a higher ability of older people to face health problems. Ajefu et al (2020) studied the effect of financial inclusion on the mental health of Nigerian household heads. The study quantified mental health using the Center of Epidemiologic Studies Short Depression Scale and constructing a financial inclusion index based on data from the Nigerian General Household Survey between 2015 and 2016.…”