Study On International Comparison And Influence Factors Of Financial Inclusion

Half of the adult population around the world does not have an account at a formal financial institution. And 75 percent of poor people are unbanked. Whereas financial inclusion aims at drawing the “unbanked” population into the formal financial system so that they have the opportunity to access financial services ranging from savings, payments, and transfers to credit and insurance. Thus financial inclusion has become a major area of interest for policymakers, practitioners, and academics who increasingly emphasize financial inclusion as a policy objective. Against the background that the global financial inclusion levels are uneven, to measure and compare the financial inclusion, and to find the path for the development of financial inclusion, are the second to none policy choices leading to financial inclusion.This paper first introduces the related concept and the analysis framework of financial inclusion, by illustrates the connotation and causes of financial inclusion and by constructing the analysis framework of the international comparison of financial inclusion according to the above. Based on this, international comparison is conducted from four dimensions namely customers, financial institutions, financial infrastructure and support services and policies and legislative measures. Then, a evaluation index system is constructed from two dimensions –Access and Usage. We determined the dimension value according to Euclidean distance method, while the coefficient of variation method was taken to determine the weight of dimension index. The result shows the levels of financial inclusion vary in each country and nations with advanced economy have higher levels of financial inclusion. Apart from this, a further comparative analysis is carried out between the developed and developing countries and countries from each continent.Secondly, with the rural financial inclusion index as the dependent variable, the model of influence factors on rural financial inclusion is established from three perspectives namely supply, demand, and the social environment. The quantile regression method is applied in order to find out the key influence factors of financial inclusion for corresponding countries in different levels of financial inclusion.Finally, recommendations for promoting the financial inclusive development are proposed: to promote economic development and improvement of income, to facilitate the construction of guarantee, credit and payment systems,, to encourage the low level countries for financial liberalization and the high level countries for prudent supervision, to advance urbanization and to create a good legal system environment for the development of financial inclusion.