Analysis of the factors determining financial inclusion in Turkey

Poverty and income inequality are among the social problems that have been studied for a long time. Problems in the allocation of resources prevent the financially disadvantaged, namely, the poor, from overcoming the financial problems they experience by staying outside the official financial system. In order to tackle these problems, the approach of the financial system to create an ecosystem by encompassing the entire population has emerged. This approach, called financial inclusion, aims to eliminate poverty and income inequality. In this study, it is aimed to examine the determinants of financial inclusion in Turkey with Qualitative Choice Models by using Global Findex-2017 data conducted by the World Bank. In the models considered within the scope of this study, in addition to demographic variables, variables that show individuals' financial attitudes and behaviors were used for the first time. Findings show that there is no gender gap in terms of financial inclusion, and that labour force participation, income, education level and age increase financial inclusion. Financial attitude and behavior variables affect financial inclusion in different magnitudes, it has been determined that the biggest contribution to financial inclusion were provided by money transfer, purchasing and borrowing variables. It has also been ascertain that mobile technologies contribute more to increasing financial inclusion. On the other hand findings shows that financial consumers' tendencies to use cash is also continue. In order to improve of financial inclusion, the necessity of directing the habits of financial consumers with regulations and incentives, and at this stage, the government to maintain legal regulations in parallel with financial technologies came to the forefront.