Financial Inclusion in the BRICS—Evidence from the World Bank’s Latest Findex Survey

The main purpose of this article is to understand the determinants of financial inclusion and the determinates of saving and borrowing behavior in the BRICS. This article uses the data from the World Bank Global Findex. As the dependent variables are binary, the Probit model is used to estimate the model. We find that account ownership has increased significantly, but the use of accounts for formal savings and formal borrowing has not picked up in the BRICS. It is also found that being male, wealthy, more educated, and older is associated with greater financial inclusion. Regarding loan-taking motivation, we find poor people tend to borrow mostly for medical purposes and rich for purchasing land and doing business. These results have important implications for financial inclusion policies in the BRICS. The BRICS economies should generally focus on education-promoting policies to enhance financial inclusion. In addition, the government and the central banks should allocate funds and pay attention to the rural areas and female population to promote financial inclusion.