What Factors Are Limiting Financial Inclusion and Development in Peru? Empirical Evidence

Sergio Náñez Alonso, Javier Jorge-Vazquez, Lieslie Gallegos Arias and Noelia Muñoz del Nogal
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Javier Jorge-Vazquez: DEKIS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain
Lieslie Gallegos Arias: Universidad Católica San Pablo, Arequipa, Peru
Noelia Muñoz del Nogal: ESODS Research Group, Department of Economics, Faculty of Social and Legal Sciences, Catholic University of Ávila, 05005 Avila, Spain

Economies, 2024, vol. 12, issue 4, 1-22

Abstract: Despite recent efforts in Peru to boost financial inclusion, significant issues of exclusion persist, especially among vulnerable groups. This article aims to identify and analyze areas at risk of financial exclusion using a multifaceted methodology: the Financial Access Survey (FAS) for comparative analysis (Peru versus other countries and regions), geographical-distribution analysis, and the Access to Cash Index (ACI) methodology. Findings reveal that remote rural areas of Peru, particularly those inland, as well as mountainous or jungle regions, face higher risks of financial exclusion due to low digital literacy, limited digital banking usage, sparse branch and ATM networks, and inadequate transportation infrastructure. These insights can inform targeted public policies to enhance financial inclusion in Peru, as well as the development.

Keywords: financial inclusion; bankarization; economic development; access to credit; inclusive development; financial exclusion (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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