Financial inclusion in Vietnam: The determinants in using banking products and mobile money

Abstract

This research attempts to enhance the conventional financial inclusion framework by developing comprehensive financial inclusion indexes based on the structure of products and services currently famous in Vietnam through two financial inclusion indexes, which are approached by banking and mobile money. Furthermore, the study examines factors affecting the level of financial inclusion indexes of individuals in Vietnam. The study uses survey data from 1,000 individuals in Vietnam conducted by the World Bank in 2022. The findings indicate that those with higher levels of education, high income, and participation in the workforce have a greater propensity to utilize banking and mobile money services, resulting in a higher level of financial inclusion index within this demographic. Besides essential demographic factors, the results from the extended regression analysis suggest that living in urban or rural areas does not significantly influence the financial inclusion index as measured by banking accessibility. However, when the financial inclusion index was approached by mobile money, living in an urban area was positively correlated with mobile money use. The study proposes several policy implications to improve individuals' financial inclusion levels based on empirical evidence.

Keywords

• mobile money
• sản phẩm ngân hàng
• tài chính toàn diện