National Factors Affecting the Intensity of Financial Inclusion: a Cross-Country Analysis

This study estimates the effects of national factors on the intensity of financial inclusion by using the two-step Heckman selection model to control for potential selection bias. The empirical testing of a series of hypotheses regarding the influence of trust in financial services sector and national culture dimensions is conducted based on the Global Findex survey-based data collected by The World Bank in 2017. The analysis is based on two measures of financial inclusion intensity: savings account usage and payment card usage. It was found that certain national culture characteristics influence the probability of using an account to save and the probability of using a payment card. This paper finds statistical evidence that trust in financial services sector promotes the probability of using a savings account. This work contributes to the existing literature by empirically analyzing the effects of national culture dimensions on the intensity of financial inclusion, as well as using a more comprehensive measure of financial trust. The results of the paper provide important implications for financial institutions aiming to improve the engagement of clients with their financial services and products.