An empiric research on the level and determinants of financial inclusion: the case of Turkey

Abstract

Purpose-The purpose of this study is to evaluate the current situation of financial inclusion and its determinants in Turkey. Methodology-The study employed the descriptive analysis method and Probit regression and the data was obtained through questionnaires from 480 respondents. Findings-The analysis reveals that in Turkey, 89.8% of the individuals have a formal account, and the remaining 10.2% of individuals are unbanked. Although the unbanked population is small in Turkey, financially excluded individuals were mostly excluded voluntarily. Using an account to save money and borrowing from family or friends are more common. In Turkey, 69.8% of respondents benefited from insurance services. Conclusion-Based on the analyisis findings, it is concluded that individuals' income & education levels are significantly associated with account ownership and formal savings. The income variable affected formal borrowing as well. The individual's age only affected to account ownership, while gender did not significantly affect financial inclusion indicators.