Determinants Of Financial Inclusion In Ethiopia: A Case Study Of Lidata Sub City, Addis Ababa

Abstract

Financial inclusion plays a crucial role in promoting economic development and reducing poverty. In Ethiopia, despite efforts to expand access to formal financial services, a significant portion of the population remains excluded. This study examines the factors influencing financial inclusion in Ethiopia, focusing on the Lidata Sub City in Addis Ababa. Methodologically researcher employed descriptive research design. Apply Financial inclusion makes formal financial services digitally accessible and accessible to and underserved populations. Such services should be tailored to the needs of consumers and delivered responsibly. Costs are affordable for consumers and fair for providers. The study analyzes and found that from eleven variables those were marital status, income, access, distance, trust and financial literacy variables were significant. The overall finding of this study suggests that financial inclusion significantly affected by marital status, income, access, trust financial literacy .This study mentions that commercial Banks should be invest on these major determinant factors, especially on access, distance and financial literacy to get high return in profit and helping the economic development.