CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

Introduction

The study aimed to determine the factors affecting financial inclusion in Ghana. Data from the sixth round of the Living Standards Survey (GLSS 7) provided by the Ghana Statistical Service were used. In addition, the impact of financial inclusion on Ghana's economic growth was examined using data from the Central Bank of Ghana and the National Communications Authority (NCA).

5.2 Summary

Using GLSS 7 data, this research delved into the factors affecting financial inclusion in Ghana. The Probit model was identified as a suitable econometric model for predicting financial inclusion trends in a country. The research had two main objectives: to identify the determinants of financial inclusion and to assess the impact of financial inclusion on economic growth. The findings indicate that factors such as age, marital status, educational attainment, religious affiliation and hours worked play a significant role in influencing the likelihood of an individual owning a bank account in Ghana. Men seem to be more likely to have bank accounts than women. Age was observed to positively affect account ownership up to a certain point, after which the probability decreased. In addition, individuals with higher education and singles were more likely to have bank accounts. In addition, the probability of owning an account increased as working hours increased.

In terms of impact on economic growth, economic growth was measured using gross domestic product (GDP). The findings indicated an increasing trend from 2018 to 2022 in the availability of aggregate demand deposits, savings, time deposits and bank loans. This upward trend suggests a potential boost to long-term economic growth as investors and entrepreneurs gain access to credit to grow and diversify. Interestingly, the cash rate has seen a decline between 2018 and 2022, while mobile money usage and associated transaction values have increased.

5.3 Conclusion

Financial inclusion involves the means by which marginalized individuals, particularly those from lower income groups, have access to appropriate financial services at an affordable cost, transparently provided by regulated mainstream entities. Using GLSS 7 data and a Probit model, this study concluded that certain demographic and socio-economic factors significantly influence the likelihood of individuals having a bank account in Ghana. An increasing trend has also been observed in key economic indicators such as aggregate deposits, bank credit and mobile money usage, while the cash rate has declined over the years.

5.4 Policy Recommendations

In light of these findings, the following policy recommendations are proposed:

• Address inequalities between women and men in financial inclusion by introducing financial products tailored to women's needs and promoting their involvement in the banking system.
• Emphasize the role of education in promoting financial inclusion. Public awareness campaigns can highlight the importance of financial literacy and inclusion.
• Motivate longer working hours in both the private and public sectors and encourage employees to earn and save more.
• Promote a competitive environment among commercial banks to encourage more disbursement of loans and account opening.

With active mobile money accounts declining in 2019, likely due to security concerns, it is critical to strengthen technological safeguards. Strengthening security measures will strengthen public confidence and encourage wider adoption of mobile money services.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

Introduction

The study aimed to determine the factors affecting financial inclusion in Ghana. Data from the sixth round of the Living Standards Survey (GLSS 7) provided by the Ghana Statistical Service were used. In addition, the impact of financial inclusion on Ghana's economic growth was examined using data from the Central Bank of Ghana and the National Communications Authority (NCA).

5.2 Summary

Using GLSS 7 data, this research delved into the factors affecting financial inclusion in Ghana. The Probit model was identified as a suitable econometric model for predicting financial inclusion trends in a country. The research had two main objectives: to identify the determinants of financial inclusion and to assess the impact of financial inclusion on economic growth. The findings indicate that factors such as age, marital status, educational attainment, religious affiliation and hours worked play a significant role in influencing the likelihood of an individual owning a bank account in Ghana. Men seem to be more likely to have bank accounts than women. Age was observed to positively affect account ownership up to a certain point, after which the probability decreased. In addition, individuals with higher education and singles were more likely to have bank accounts. In addition, the probability of owning an account increased as working hours increased.

In terms of impact on economic growth, economic growth was measured using gross domestic product (GDP). The findings indicated an increasing trend from 2018 to 2022 in the availability of aggregate demand deposits, savings, time deposits and bank loans. This upward trend suggests a potential boost to long-term economic growth as investors and entrepreneurs gain access to credit to grow and diversify. Interestingly, the cash rate has seen a decline between 2018 and 2022, while mobile money usage and associated transaction values have increased.

5.3 Conclusion

Financial inclusion involves the means by which marginalized individuals, particularly those from lower income groups, have access to appropriate financial services at an affordable cost, transparently provided by regulated mainstream entities. Using GLSS 7 data and a Probit model, this study concluded that certain demographic and socio-economic factors significantly influence the likelihood of individuals having a bank account in Ghana. An increasing trend has also been observed in key economic indicators such as aggregate deposits, bank credit and mobile money usage, while the cash rate has declined over the years.

5.4 Policy Recommendations

In light of these findings, the following policy recommendations are proposed:

• Address inequalities between women and men in financial inclusion by introducing financial products tailored to women's needs and promoting their involvement in the banking system.
• Emphasize the role of education in promoting financial inclusion. Public awareness campaigns can highlight the importance of financial literacy and inclusion.
• Motivate longer working hours in both the private and public sectors and encourage employees to earn and save more.
• Promote a competitive environment among commercial banks to encourage more disbursement of loans and account opening.

With active mobile money accounts declining in 2019, likely due to security concerns, it is critical to strengthen technological safeguards. Strengthening security measures will strengthen public confidence and encourage wider adoption of mobile money services.

Required

a) Rephrase the text to be free of similarity index such as www.researchgate.net(internal source) for the project thesis