Digital Financial Inclusion: Socioeconomic and Demographic Factors of Access and Usage in Senegal

Abstract

Digital financial services (DFSs) have emerged as a pivotal instrument for enhancing access to essential financial services. In Senegal, despite significant progress, persistent inequalities continue to limit access to DFS. This study aims to contribute to the understanding of the socioeconomic and demographic determinants of digital financial inclusion. Utilizing the Global Findex data from the World Bank's 2021 edition for Senegal and a Probit model, the study's findings indicate that socioeconomic and demographic factors significantly influence access to and utilization of DFS. Specifically, women are less likely to access and use DFS. Furthermore, individuals aged 25–50 demonstrate a higher propensity for possessing mobile money accounts and debit cards, as well as a greater inclination to utilize DFS compared to young adults aged 15–24. Additionally, access to and utilization of digital DFS are influenced by place of residence (urban or rural), educational attainment, and income level. The findings of this study suggest that promoting financial education, adapting financial services to the needs of target populations, establishing a favorable regulatory framework, and developing digital infrastructures are essential mechanisms for enhancing access to and use of DFS.