Identifying supply and demand side factors that influence financial inclusion: an application of Ann's

Abstract

Theoretically, financial development creates enabling conditions for growth through either a supply-led or a demand-pull process. Financial inclusion implies provision of affordable financial services, such as access to payments and remittance facilities, savings, loans and insurance services by the formal financial system to those who tend to be excluded. The factors that influence supply and demand side of financial inclusion are analyzed in this paper. Artificial Neural Networks are used to identify specific factors that influence different financial products on the supply side and different sources of borrowing on the demand side. These factors can be used for evolving appropriate strategies for enhancing financial inclusion.