The micro determinants of financial inclusion and financial resilience in Africa

Abstract

This study analyzes the factors influencing financial inclusion and financial resilience in Africa. Using national surveys of 40 African countries and the doing business database, multiple models are performed to analyze financial inclusion drivers. The results show that individual characteristics, barriers to formal accounting, financial literacy and innovation condition the decision to have a traditional or mobile account. Informal savings are common among women, youth and in rural areas while formal savings predominate among men, the elderly and in urban areas. A high level of education and income leads people to migrate to formal savings. For business purposes, informal savings are preferred while for old age, individuals resort to formal savings because of interest rates. Social lifestyles make informal credit predominate in Africa. However, when people have employment, high income or education, they turn more to formal credit to preserve their reputation because of the respect and popularity they enjoy in their community. Marriage, financial literacy and innovation improve the resilience of individuals, while employment increases their vulnerability. Key policy recommendations are to improve the banking sector, institutions, innovations and income-generating activities to attract women and reduce the gender gap.

Effet du mobile money sur la résilience des ménages exerçant des activités génératrices de revenus au Cameroun

“…De plus, il ressort que le niveau d'étude, la religion et la taille du ménage sont des variables socioéconomiques qui influencent positivement et significativement la probabilité d'usage du mobile money. Tandis que la possession d'un compte bancaire (Tinta et al, 2022; Senou & Manda, 2022) et d'un compte à la microfinance sont des variables d'environnement influençant positivement et significativement la probabilité d'utilisation du mobile money au Cameroun.…”

Financial dualism: An analysis of the effects of informal finance on formal finance in West African Economic and Monetary Union (WAEMU) countries

“…As such, this variable cannot be exogenous in Equation ( 6). Zins and Weill (2016) and Tinta et al (2022) also show that socioeconomic factors exert significant effects on people's access to and use of informal financial services. The T i variable is then explained as follows:…”

An analysis of the influence of socioeconomic and demographic factors on financial inclusion in underdeveloped regions

“…This makes it difficult to register a formal account, savings account, or credit account. Tinta et al, (2022) researched the factors that influence financial inclusion and financial resilience in Africa. They discovered that individual characteristics, barriers to formal accounting, financial literacy, and innovation are the primary determinants of whether a person chooses to have a traditional or mobile account.…”

“…They discovered that individual characteristics, barriers to formal accounting, financial literacy, and innovation are the primary determinants of whether a person chooses to have a traditional or mobile account. According to Tinta et al (2022), informal savings are prevalent among women and younger people, as well as in rural areas. Formal savings, on the other hand, are more common among older people, as well as in urban areas; additionally, a higher level of education and income drives people to migrate toward formal savings.…”

“…Formal savings, on the other hand, are more common among older people, as well as in urban areas; additionally, a higher level of education and income drives people to migrate toward formal savings. Tinta et al, (2022) discovered that individuals' levels of resilience grow when they are married, financially literate, and innovative, whereas individuals' levels of vulnerability increase when they are employed. Important proposals for public policy include enhancing the financial sector, institutions, innovations, and activities that generate money to increase the participation of women and decrease the gender gap.…”