Financial inclusion and its determinants among households in Jimma Zone of Oromia Regional State, Ethiopia
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The majority of the developing countries, access to finance is demanded more for the middle and low- income community and considered as a public good, which is as important as access to safe water, primary education, etc. The researcher used a hybrid of qualitative and quantitative approach. The exploratory research design used in exploring and developing financial literacy framework to study in the Ethiopian context as there is no financial literacy framework developed previously. The descriptive research design used in describing the level of financial literacy, financial inclusion, saving behavior, the relationships between financial literacy and saving habit, the demographic and socio-economic characteristics of the study area. The sample size taken for the study was 173 households. Descriptive statistics and inferential statisticswere used to attain the objective of the research. The probit regression model produced similar results as those obtained using the logit model showed that age, education, financial literacy, and income are positively related to financial inclusion and distance to the nearest provider of financial services negatively impact financial inclusion. It is possible to reduce determinates of financial inclusion with regulating well the financial system, creating healthy competition and building better enabling environment. Identifying and segregating the root causes and addressing it appears to be removing the distance, services charge, and credit barriers. On the other hand, the market for financial services failures and behavioral problems related to customer tend to be addressed through designing of appropriate financial products. Removing those challenges and expanding financial inclusion tend to be possible with the promise of the latest technologies.