An investigation on the determinants of opening a bank account in Zimbabwe

ABSTRACT

The promotion of an inclusive financial system has become important to many countries in policy crafting. The study seeks to explore the determinants of opening an account with a bank in Zimbabwe. Data from Finscope Survey 2014 was used to estimate probit models and for robustness check Linear Probability Models. Using these data, the socioeconomic factors influencing individuals in deciding whether or not to open an account with a bank in Zimbabwe is analysed. According to our analysis, the decision to open a bank account by individuals is influenced by Location, Age, Gender, Marital status, Proof of residence, Employment history and Level of Education. There is need to build inclusive financial systems through different policies by governments and central banks. Financial literacy education and financial inclusion campaigns are paramount in improving levels of people opening bank accounts.

KEYWORDS:

• Financial inclusion
• Zimbabwe
• bank account
• economic growth

JEL CODE:

• E5

Acknowledgements

The author is grateful to Finmark Trust for the permission to use their Finscope Survey 2014 data. The author is also indebted to colleagues who assisted with valuable comments.

Disclosure statement

No potential conflict of interest was reported by the author.