Determinants of financial inclusion: does culture matter?

This study aims to assess the role of culture as a determinant financial inclusion, defined with respect formal account ownership, saving and credit in/from institutions. A sample 85 countries, comprising 50 developing 35 developed countries from World Bank’s Global Findex database is used perform probit estimations. Hofstede’s cultural dimensions, namely power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, short/long-term orientation, indulgence/restraint are measures. Our findings indicate that living in high more masculine, avoidance cultures reduces likelihood for inclusion. Meanwhile, individualistic, long-term oriented, indulgent increases These relevant design policies foster inclusion across world, especially affects poverty levels reduction strategies, economic development whole. We provide evidence which dismisses global “one size fits all” strategy applied development-related initiatives like provision funds towards argue customised approach given country-level differences conditioned by different frameworks.