The role of financial literacy, financial attitude and financial behaviour on financial inclusion in Somalia: an empirical study

Abdul Razak, Dzuljastri and Mohamed, Zakaria Hassan (2024) The role of financial literacy, financial attitude and financial behaviour on financial inclusion in Somalia: an empirical study. International Journal of Business, Economics and Law, 31 (1). pp. 125-132. ISSN 2289-1522

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Abstract

This study examines the role of financial behaviour, financial attitude, and financial literacy on financial inclusion in Somalia. The study used a questionnaire to gather data from 200 participants. The data was analyzed using SMART-PLS. The results indicate that the financial attitude (FA) (b= 0.436; t-value=6.112, p-value=0.000), financial behaviour (FB) (b= 0.224; t- value=2.801, p-value=0.005), and financial literacy (FL) (b= 0.197; t-value=2.440, p-value=0.015) play a significant role in advancing financial inclusion in Somalia. An individual's use of financial services offered by Somali banks depends on their financial literacy, mindset, and saving habits. Financial inclusion aims to provide equitable and unrestricted access to banks’ services, specifically emphasising creating equal chances for those who face economic hardships, women, and people with disabilities. This allows individuals to improve their socioeconomic status, substantially impacting the country's economic development. Hence, financial institutions and governments need to collaborate to formulate rules and regulations that efficiently address the issue of financial exclusion and guarantee inclusivity for all individuals. Furthermore, Somali banks should adopt measures to enhance citizens' financial literacy and promote their engagement in banking services. The paper proposes thoroughly evaluating the educational curriculum to include fundamental financial knowledge.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial Inclusion, Financial Behaviour, Financial Literacy, Financial Attitude, Somalia
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF) International Institute for Halal Research and Training (INHART)
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	03 May 2024 10:59
Last Modified:	03 May 2024 11:13
URI:	http://irep.iium.edu.my/id/eprint/112025

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