The Effect of National Cultural Values on the Financial Inclusion: An International Perspective

Financial inclusion is essential for attaining the United Nations Sustainable Development Goals. Research on financial inclusion is becoming increasingly vital for both researchers and policymakers alike. Previous studies have investigated the influence of formal institutions on financial inclusion. Nevertheless, the influence of informal cultural disparities on financial inclusion remains largely unexplored. This study investigated the influence of national cultural values on the levels of financial inclusion and illustrated how national culture might decrease the degrees of financial inclusion in countries. A comparative analysis methodology was used in the study, utilising secondary data from a time series from 2012 to 2021. The data encompassed 40 nations that were divided into four income groups. The findings indicated that the differences in degrees of national cultural values among various countries substantially impacted the country's levels of financial inclusion. The results suggested that Hofstede's cultural dimensions significantly impacted financial inclusion in the countries examined in the study. Moreover, these aspects were associated with financial inclusion, demonstrating diverse levels and orientations of influence. The results indicated that countries with a strong aversion to uncertainty and significant power disparities likely exhibit lower financial inclusion levels. Conversely, nations characterised by high levels of individualism and masculinity tended to demonstrate greater financial inclusion. The robust and extensive results of a series of rigorous evaluations may be a valuable foundation for policymakers, regulators, and other stakeholders in their efforts to promote sustainable development worldwide by improving global financial inclusion.