Financial Inclusion of Young People: Disproportions between the Old and New Member States of the European Union

Agnieszka Huterska, Robert Huterski, Grazyna Voss
European Research Studies Journal, Volume XXIII, Issue 4, 852-864, 2020
DOI: 10.35808/ersj/1718


Purpose: The article aims to indicate the size and specificity of the disproportions in the financial inclusion of young people aged 15-24 between the old and new member states of the European Union. Design/Methodology/Approach: The work uses data from the Global Findex Database, which contains the results of a survey conducted in 2017 among households. The dependence between the different degrees of financial inclusion was examined. For this purpose, correlation coefficients were calculated and their significance was checked using t-statistics. The article primarily used statistical analysis of data concerning the degree of financial inclusion as a research method. Findings: Differences in the wealth of the old and new member states of the European Union may partly explain the differences in the degree of inclusion in financial services among young people in these countries, however, this link is not clear. The examples of Slovenia, Estonia, and Latvia indicate that it is possible to effectively promote among young people the use of banks and other formal financial institutions also in relatively less wealthy countries. Both in the group of countries belonging to the European Union and in the group of non-EU high-income countries, a strong correlation was found between the share of young people who have an account and the share of young people collecting savings in a bank or other formal financial institution. Practical Implications: Less affluent countries, which consider increasing inclusion in financial services among young people as an important goal, should also seek solutions in the educational and cultural spheres. That is why the activity of the authorities, financial and educational institutions as well as the media, which promotes having an account and collecting formal savings among young people, is socially desirable. Originality/value: The issue of inclusion in financial services among young people was examined, taking into account the diversity of conditions in the old and new European Union countries, and the results were compared to the situation in high-income countries from different continents that do not belong to the European Union.

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