Determinants of Financial Inclusion in Africa: Evidence on Holding a Current Account

Abstract

The term "financial inclusion" implies access and use of banking services (current account, savings account, insurance, credit, payments, etc.) at a low cost for the disadvantaged and low-income population in a country. In fact, banking services constitute a public good. It is therefore necessary that the accessibility and equitable use of banking services by the entire population should be among the primary objectives of government policies and financial institutions. Indeed, this helps to meet the basic financial needs of the population in any given country. The main objective of our study is therefore to examine the determinants of current account holding, which is considered to be a basic dimension of the use of banking services and therefore of financial inclusion. In our paper, we adopt an empirical approach using cross-sectional data to analyze the determinants of current account holding in the African continent.