Fınancıalınclusıon In Turkey: Evıdence From Indıvıduallevel Data

Abstract

Using individual level data from the World Bank Global Findex for 2017, this study analyzes the levelof financial inclusion and explores its main determinants in Turkey. In particular, it explores how individualcharacteristics (i.e. gender, age, income, education) are associated with the usage of formal financial servicesand impinge on the perceived barriers to account ownership among financially excluded individuals in Turkey.The results of the study indicate that being man, older, richer and more educated increases the likelihood ofhaving a formal account and formal saving. Moreover, mobile banking is found to be driven by identicalindividual characteristics with that of other traditional formal financial services usage. As regards with the mainobstacles for not having a formal account, each one of the individual attributes seems to be significant inexplaining different voluntary and involuntary self-reported barriers behind financial exclusion. The findingsare of remarkable importance for designing policies to promote financial inclusion in Turkey.