Financial inclusion determinants in South-Eastern European Countries
Session
Management, Business and Economics
Description
New financial technologies (FinTech) are viewed as important enablers of financial inclusion (defined as the use of formal bank accounts), despite theory suggesting that market imperfections, primarily information asymmetries, transaction costs and market segmentation, prevent people from escaping poverty considering the constraints of access to formal financial services. This analysis examines the individual and country level determinants of the financial inclusion while evaluating the policies that are associated with the financial inclusion of women, poor, rural, and young people in South-Eastern European Countries. To understand the determinants of financial inclusion at the country level, the study employs a two stage Heckman Selection while controlling for GDP per capita, variables measuring costs of banking, variables measuring know your customer requirements, variables measuring bank ownership etc. Additionally, the analysis uses a probit model to assess the individual characteristics that determine the financial inclusion. The preliminary findings suggest that lower financial inclusion is more prevalent among women and people residing in rural areas.
Keywords:
financial inclusion, financial institution
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-95-6
Location
UBT Lipjan, Kosovo
Start Date
28-10-2023 8:00 AM
End Date
29-10-2023 6:00 PM
DOI
10.33107/ubt-ic.2023.190
Recommended Citation
Jahja, Albulena, "Financial inclusion determinants in South-Eastern European Countries" (2023). UBT International Conference. 45.
https://knowledgecenter.ubt-uni.net/conference/IC/MBE/45
Financial inclusion determinants in South-Eastern European Countries
UBT Lipjan, Kosovo
New financial technologies (FinTech) are viewed as important enablers of financial inclusion (defined as the use of formal bank accounts), despite theory suggesting that market imperfections, primarily information asymmetries, transaction costs and market segmentation, prevent people from escaping poverty considering the constraints of access to formal financial services. This analysis examines the individual and country level determinants of the financial inclusion while evaluating the policies that are associated with the financial inclusion of women, poor, rural, and young people in South-Eastern European Countries. To understand the determinants of financial inclusion at the country level, the study employs a two stage Heckman Selection while controlling for GDP per capita, variables measuring costs of banking, variables measuring know your customer requirements, variables measuring bank ownership etc. Additionally, the analysis uses a probit model to assess the individual characteristics that determine the financial inclusion. The preliminary findings suggest that lower financial inclusion is more prevalent among women and people residing in rural areas.