The Impact of Socio-Economic and Psychographic Factors on Financial Inclusion

Abstract

Financial inclusion is a crucial factor in mainstreaming the low-income population with the formal financial system. It provides access to credit and provides a broad range of financial services. However, factors like illiteracy, inadequate income, and lack of awareness limit the poor people to utilize services offered by the bank. The study examines the Financial Attitude (FA), Financial Behavior (FB), and Financial Knowledge (FK) among the people of Rajasthan and interprets the effect on financial inclusion. This research is segregated based on aspects leading to financial exclusion like age, gender, income, education level, occupation, demographic, etc. The comprehensive research in studying the impact of socio-economic and psychographic factors on financial inclusion reveals that people are concerned about saving money for their future but still, there an enormous scope of better utilization of savings.

Predicting Financial Inclusion in Peru: Application of Machine Learning Algorithms

“…Younger youth are less likely to start and more likely to increase their average monthly net savings steadily. In addition, as youth get older, their expenses rise, as do expectations for them to make money and pay for their costs, whether for education or daily needs (Jha et al 2022).…”

“…Often, financial service providers neglect the imperative of crafting financial offerings tailored to the requirements of elderly clients. Their emphasis centers on the economically pro-ductive demographic, potentially resulting in the marginalization of older individuals regarding their access to financial services (Jha et al 2022). Additionally, according to Sanderson et al (2018), financial inclusion increases with age until it reaches a certain age, beyond which it starts to decrease.…”