Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania

Efforts are being exerted in many developing countries to promote financial inclusion by increasing individuals’ access to financial products and services. However, literature suggests that increasing the supply of financial products and services per se may not help in expanding financial inclusion...

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Autores principales:	Ashenafi Fanta, Kingstone Mutsonziwa
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	East Africa instrumental variable financial knowledge financial behaviour Risk in industry. Risk management HD61 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/e38d4b36055a46f5b81c43e1206a1309
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spelling	oai:doaj.org-article:e38d4b36055a46f5b81c43e1206a13092021-11-25T18:08:49ZFinancial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania10.3390/jrfm141105611911-80741911-8066https://doaj.org/article/e38d4b36055a46f5b81c43e1206a13092021-11-01T00:00:00Zhttps://www.mdpi.com/1911-8074/14/11/561https://doaj.org/toc/1911-8066https://doaj.org/toc/1911-8074Efforts are being exerted in many developing countries to promote financial inclusion by increasing individuals’ access to financial products and services. However, literature suggests that increasing the supply of financial products and services per se may not help in expanding financial inclusion unless concerted efforts are exerted in enhancing financial literacy. This is because financially literate individuals are more likely to appreciate the value of financial services and hence take up financial products. This paper reports the link between financial literacy and inclusion using data from a demand side financial inclusion survey conducted in Kenya and Tanzania in 2016 covering a total of 6029 individuals. Results from our instrumental variable regression analysis confirmed that financial literacy is a strong driver of financial inclusion. This implies that efforts to promote financial inclusion need to be accompanied with financial literacy campaigns in both countries.Ashenafi FantaKingstone MutsonziwaMDPI AGarticleEast Africainstrumental variablefinancial knowledgefinancial behaviourRisk in industry. Risk managementHD61FinanceHG1-9999ENJournal of Risk and Financial Management, Vol 14, Iss 561, p 561 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	East Africa instrumental variable financial knowledge financial behaviour Risk in industry. Risk management HD61 Finance HG1-9999
spellingShingle	East Africa instrumental variable financial knowledge financial behaviour Risk in industry. Risk management HD61 Finance HG1-9999 Ashenafi Fanta Kingstone Mutsonziwa Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
description	Efforts are being exerted in many developing countries to promote financial inclusion by increasing individuals’ access to financial products and services. However, literature suggests that increasing the supply of financial products and services per se may not help in expanding financial inclusion unless concerted efforts are exerted in enhancing financial literacy. This is because financially literate individuals are more likely to appreciate the value of financial services and hence take up financial products. This paper reports the link between financial literacy and inclusion using data from a demand side financial inclusion survey conducted in Kenya and Tanzania in 2016 covering a total of 6029 individuals. Results from our instrumental variable regression analysis confirmed that financial literacy is a strong driver of financial inclusion. This implies that efforts to promote financial inclusion need to be accompanied with financial literacy campaigns in both countries.
format	article
author	Ashenafi Fanta Kingstone Mutsonziwa
author_facet	Ashenafi Fanta Kingstone Mutsonziwa
author_sort	Ashenafi Fanta
title	Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
title_short	Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
title_full	Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
title_fullStr	Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
title_full_unstemmed	Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania
title_sort	financial literacy as a driver of financial inclusion in kenya and tanzania
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/e38d4b36055a46f5b81c43e1206a1309
work_keys_str_mv	AT ashenafifanta financialliteracyasadriveroffinancialinclusioninkenyaandtanzania AT kingstonemutsonziwa financialliteracyasadriveroffinancialinclusioninkenyaandtanzania
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Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania

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