DETERMINANTS OF DIGITAL FINANCIAL INCLUSION IN TURKEY: EVIDENCE FROM WORLD BANK FINDEX 2025 MICRO-DATA

Abstract

This study examines the demographic determinants of digital financial inclusion (DFI) in Turkey by using the individual micro-data (N=1,000) of the World Bank Global Findex in 2025 and a Partial Proportional Odds Model (gologit2). DFI has been operationalized as a four-level ordinal index ranging from no account ownership (Level 0) to digital merchant payment usage (Level 3) and so an ordered logit baseline has been estimated; nevertheless, the proportional odds assumption has been rejected (chi-squared(12)=112.97, p<0.001), by motivating gologit2 auto-fit. Compiled results reveal a two-layer structure of financial inclusion and the factor of income is no longer a significant predictor (p=0.660) at the account access layer and women exhibit higher DFI probabilities than men when structural controls are applied (beta=+0.817***), consistent with a fin-tech democratization dynamic. All of the deep digital usage layers, income (beta=+0.897***) and education (beta=+2.027***) emerge as increasingly powerful determinants. Employment status is the strongest predictor across all levels (marginal effect: +39.4 percentage points for full digital inclusion), followed by education (+32.8 pp). Policy implications call for a shift from account-opening metrics toward active digital usage, together with targeted interventions for low-income and less-educated groups.

Keywords

• Financial inclusion
• digital finance
• financial technologies
• digital payments

References

1. Allen, F., Demirguc-Kunt, A., Klapper, L., & Peria, M. S. M. (2016). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 27, 1–30. https://doi.org/10.1016/j.jfi.2015.12.003
2. Beck, T., Demirguc-Kunt, A., & Peria, M. S. M. (2007). Reaching out: Access to and use of banking services across countries. Journal of Financial Economics, 85(1), 234–266. https://doi.org/10.1016/j.jfineco.2006.07.002
3. Canatan, B., Akboz Caner, A., & Özbilge, G. (2024). Dynamics of digital financial inclusion in Türkiye. Istanbul Business Research, 53(2), 185–200. https://doi.org/10.26650/ibr.2024.53.1232448
4. Demirguc-Kunt, A., & Klapper, L. (2013). Measuring financial inclusion: Explaining variation in use of financial services across and within countries. Brookings Papers on Economic Activity, 2013(1), 279–340. https://doi.org/10.1353/eca.2013.0002
5. Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017: Measuring financial inclusion and the fintech revolution. World Bank Group. https://doi.org/10.1596/978-1-4648-1259-0
6. Demirguc-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021: Financial inclusion, digital payments, and resilience in the age of COVID-19. World Bank Group. https://doi.org/10.1596/978-1-4648-1897-4
7. Demirguc-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2025). The Global Findex Database 2025. World Bank Group.
8. Jack, W., & Suri, T. (2011). Mobile money: The economics of M-Pesa (NBER Working Paper No. 16721). National Bureau of Economic Research. https://doi.org/10.3386/w16721

9. Kim, J. H., Kim, J., & Lee, S. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1–14. https://doi.org/10.1016/j.ribaf.2017.07.178
10. Klapper, L., El-Zoghbi, M., & Hess, J. (2016). Achieving the Sustainable Development Goals: The role of financial inclusion. CGAP.
11. Ozili, P. K. (2020). Theories of financial inclusion. In Uncertainty and challenges in contemporary economic behaviour (pp. 89–115). Emerald Publishing. https://doi.org/10.1108/978-1-80043-095-220201008
12. Somuncu, K. (2025). The relationship between financial inclusion and real economic growth: Examples from Turkey, developing countries, developed countries, and the world. Yönetim Bilimleri Dergisi, 23(55), 310–335. https://doi.org/10.35408/comuybd.1516794
13. Suri, T., & Jack, W. (2016). The long-run poverty and gender impacts of mobile money. Science, 354(6317), 1288–1292. https://doi.org/10.1126/science.aah5309
14. Williams, R. (2006). Generalized ordered logit/partial proportional odds models for ordinal dependent variables. Stata Journal, 6(1), 58–82. https://doi.org/10.1177/1536867X0600600104
15. World Bank. (2022). Global Findex Database 2021: Financial inclusion, digital payments, and resilience. World Bank Publications.
16. World Bank. (2025). Global Findex Database 2025: Measuring financial inclusion. World Bank Publications.
17. Zins, A., & Weill, L. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57. https://doi.org/10.1016/j.rdf.2016.05.001