Financial Inclusion and Its Determinants in Zimbabwe

Abstract

Financial inclusion has taken a centre stage in academia and policy circles in developing countries due to its ability to drive economic growth, reduce poverty and inequality as well as facilitate savings. This study provided evidence on the determinants of financial inclusion in Zimbabwe using a binary logit model. This study established that individual characteristics: age, income, gender, education and employment status were the determinants of financial inclusion in Zimbabwe. In addition, this study established that trust in financial institutions was the major reason why the majority remained unbanked. Against these findings, promoting an allinclusive financial sector to cover existing gaps is essential for the nation and implementing policies effective in boosting confidence and trust in financial institutions remains critical for Zimbabwe.

Keywords: Financial inclusion, Financial institutions, Logit model, Zimbabwe

JEL Classification: D14, G21, O16