Abstract:
The main objective of this paper is to examine factors affecting Households’ Inclusions to
Financial Services in Ambo Town, West Shewa Zone, Ethiopia. In order to achieve the objective
of the study the researcher employed descriptive and explanatory research design, primary and
secondary sources of data, and multi-stage sampling techniques were applied in the study. As far
as sampling techniques concerned, simple random sampling technique was employed to select
individual respondents to avoid sampling bias. By employing logit model, the findings of this
paper reveal that gender, education, age and income are the pertinent factors which affect the
financial inclusion in the study area. The results show that, as the level of education increases,
the individual is more likely to be financially included. The result of this finding was confirms
that the determinants of HHs FI were different across individual characteristics. The result of
Pseudo R2 shows that change on the dependent variable (FI) was explained by 55.45% by the
independent variables employed in the study. Therefore, 44.55 % of the change in the dependent
variable (FI) was explained by other factors that are not included in the model. However, lack of
documentation, lack of trust, lack of provide servicing and lack of money are significant barriers
to HHs financial inclusion in the study area of Ambo town. However, lack of documentation, lack
of trust, lack of provide servicing and lack of money are significant barriers to financial
inclusion. It was strongly recommend that policies that aim to foster financial inclusion should
target the vulnerable (the poor, young, less educated, and women) population groups
