Determinants of financial inclusion: Evidence from Tanzania

Abstract

Kaula Stephen

The study assessed the factors influencing financial inclusion. The assessment used secondary data sources from Bank of Tanzania and World Bank data covering 11year period from 2012 to 2022. Using longitudinal time line panel data, model diagnostic test and regression were analysis tools employed. The results of analysis showed that per capita income and inflation rate were positive and insignificant determinants of financial inclusion index while networking of banks financial institutions’ branches and age dependence ratio found to have negative and insignificant determination on financial inclusion. Moreover, domestic credits provision, steady money supply and deposit interest rate were found to be positive and significant determinants of financial inclusion index. In light of this it is recommended that all customers should deposit money banks to make sure their goods and services are alluring since doing so will encourage the Tanzanian people to save more.

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