The Impact of Financial Inclusion on the Financial Resilience of Individuals in the Philippines

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Niño Alejandro Q. Manalo

Committee Member

Maria Luisa G. Valera, Gideon P. Carnaje, Maria Angeles O. Catelo

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Abstract

This study examined the impact of financial inclusion on the financial resilience of individuals in the Philippines. Financial resilience was defined as the ability to access emergency funds within a one-month period, while financial inclusion referred to access to and usage of formal financial services, including debit cards, credit cards, and mobile money. The study also considered the role of socio-demographic factors such as gender, age, education, income, and employment status in shaping financial resilience.

Using data from the 2021 World Bank Global Findex Survey, which included 1,000 Filipino adults aged 15 and older, a Financial Inclusion Index was constructed through Principal Component Analysis based on six binary indicators of account ownership and usage. Descriptive statistics were used to examine levels of financial inclusion and financial resilience across socio-demographic groups. Results showed that financial inclusion was higher among males, individuals in their prime working years, those with higher education, greater income, and those who were employed. Conversely, financial resilience was lower among females, younger individuals, those with lower education and income levels, and the unemployed.

A binary logistic regression analysis was conducted, highlighting that financial inclusion was a positive and statistically significant predictor of financial resilience. Additionally, educational attainment, income level, and gender emerged as significant factors influencing an individual's ability to cope with financial shocks. In contrast, age and employment status did not show statistically significant effects. These findings highlight the critical importance of expanding access to formal financial services and addressing structural barriers, particularly those affecting women and low-income groups, to strengthen financial resilience across the population.

Language

English

LC Subject

Finance—Management, Financial literacy

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 L66

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Document Type

Thesis

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