Author(s): Farid Ahmed, Roop Lal Sharma, R. Gopinathan
The paper analyses the determinants of financial inclusion such as formal accounts, formal saving, formal credit, ownership and use of debit card in the BRICS. The study uses the data which is an outcome of the latest survey conducted by the Gallup foundation in collaboration with the World Bank. Financial inclusion measures are approximated by the variables like ownership formal accounts, use of accounts for saving and borrowing, ownership, and use of the debit card. Since the dependent variable is binary, the Probit methodology is used to estimate the model with independent variables as; age, income, education, and gender. The findings of this study show that being male, richer, more educated and older favours financial inclusion. We also find that age and income are the significant determinants of savings. The results drawn in this study can be used by the policymakers to leverage financial inclusion in the BRICS. The policymakers can use measures like education and income enhancing measures to promote financial inclusion. Also, financial policies can be directed to focus on the financial inclusion of women.