Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 11, 2022 erstellt
Description:
There are hosts of macroeconomic dynamics contributing to financial inclusion in developing countries. These sources may be both from the demand side and supply side. The government and financial institutions takes several policy initiatives to encourage the supply of financial services to the excluded sector. However, the demand-side factors of financial access have attracted little focus. This study provides an overview of sources of financial inclusion and highlights the policy measures from the perspective of consumers of financial services – also known as the demand-side. The secondary series data were estimated using the panel ordinary least square estimation techniques. The findings of the study indicate that economic growth, literacy level and the number of internet users exert a positive and significant effect on financial access in East African nations. However inflation was identified as slowing financial inclusion. In addition, the result indicates that the deposit interest rate was insignificant. The study recommends for the deposit interest rate be made attractive to promote continuous saving and access to loanable funds in the financial market. The policy strategies therefore should be aimed at cultivating a conducive financial system that upholds financial access-demand-driven rates to stimulate financial growth