Abstract
In recent years there is an increasing research attention on youth and their transition to adulthood. In that transition they have increasing demand for financial products and services. If they are not financial included it may leave long-lasting consequences for their future independence and stability.The main goal of this research is to investigate and explain barriers to poor financial inclusion of youth in Federation of Bosnia and Herzegovina (FBiH), and make some recommendations for increasing their financial inclusion, and indirectly for strengthening their social inclusion. Implications of this study suggest that the main reason for being unbanked is because someone else in the family already has an account, or because they do not have enough money to use services of financial institutions. The results have revealed statistically significant relation between need for financial services at a formal institution and having a bank account, category of students’ financial knowledge and having a bank account, having a debit card and having a credit card. Research results can serve the economic and social policy makers in the FBiH in policy and strategy design.
Highlights
In recent years there is an increasing research attention on youth and their transition to adulthood
The main goal of this paper is to identify and explain reasons of poor financial inclusion of youth in the Federation of Bosnia and Herzegovina (FBiH)
When it comes to basic indicators of financial inclusion, it is evident that majority of youth in our sample have a bank account (77.1%), and they have used it in the past 12 months (71.7%)
Summary
In recent years there is an increasing research attention on youth and their transition to adulthood. Since 2011, three-quarters of a billion people have gained access to financial services, and the number of young adults (age 15-24) holding an account at a formal institution increased from 37 to 46 percent (Child and Youth Finance International [CYFI], 2016). This data indicates big challenges for governments and international organizations. Latest Findex data (Financial Inclusion Data) for Bosnia and Herzegovina (BiH) show that just 53% people ages over fifteen years have account in financial institution, which is far away from average of developed countries (94%) and far away from average from neighbor countries: Croatia 86%, Serbia 83% (World Bank Open Data, 2017). In this research we try to investigate barriers to financial inclusion of youth and to give some useful recommendations
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