Does the composition of financial services in a community relate to an Individual’s savings account ownership?

Abstract

This study extends research on financial inclusion by exploring the composition of financial services within communities. Using propensity-score-adjusted probit regression, we explored associations with savings account ownership using restriscted-access, cross-sectional data from the 2015 National Financial Capability Study with merged financial services and community demographic data. Living in communities where the density of banks and credit unions outnumbered that of alternative financial services was associated with lower-income households’ greater probability of owning a savings account, all else being equal. These results have implications for efforts aiming to improve financial inclusion.