Financial inclusion for young generation: Determinants and solutions

Abstract

Young people's financial inclusion is crucial. In the appropriate context, having access to financial services can empower young people and improve their wellness by catering to their requirements and stage of life. This study was conducted to explore the factors which affect financial inclusion among young generation in Ho Chi Minh City. A 320 valid sample was used in this study to find the relationship between 10 factors: Outreach, income adequacy, trust, technology, financial literacy, perceived benefits of usage, accessibility, information asymmetry, availability, penetration. A reliability and validity test were conducted, then the results showed that all 10 factors with 30 observed variables were accepted. For the linear regression test, there were 5 factors affecting financial inclusion among young generation consisting of: outreach, technology, financial literacy, trust, and accessibility and all four factors have a positive impact on purchase intention. Noticeably, financial literacy and technology has the greatest impact on financial inclusion among young generation. Therefore, several implications regarding the development of financial courses and Fintech are recommended in order to promote financial inclusion, financial well – being and sustainable resilience among young generation in Ho Chi Minh city.