Triggers and Barriers for ‘Exclusion’ To ‘Inclusion’ in the Financial Sector: A Country-Wise Scrutiny

There have been very few works focusing on the determinants and barriers of financial inclusion. The objective of this study is two folded. Firstly, to measure a efficient composite multi-dimensional index for financial inclusion with both supply and demand-side factors using two stage Principal Component Analysis for 91 countries using the World Bank Findex database for two benchmark years, 2011 and 2014. Secondly, to track the binding determinants of financial inclusion using a panel fixed effects model. The middle and low income countries can reach up to their potential if sources of barriers have been tracked efficiently as this is the main constraint for inclusive financial system.