Assessing The Effect Of Financial Inclusion On The Financial Capability Of Workers

Ghana has positioned itself at the policy level to improve financial capability through financial inclusion.The concerns have narrowed down to accepting financial literacy,financial skills,financial attitudes,and financial behaviour as possible means to enhance financial capability.This study aims to investigate the effect of financial inclusion on the financial capability of workers in Ghana.Specifically,the study estimates the relationships between financial literacy and financial capability,financial skills and financial capability,financial attitudes and financial capability,financial behaviour and financial capability.The study involved data taken from workers in the Techiman Municipality in the Bono East Region of Ghana.Using a convenient sampling method,a total of 1080 respondents were selected for the study.The method chosen is because it is impractical to use all public sector employees as respondents because of their many numbers.The data was transformed into panel data,and econometric analysis was performed to establish the relationships.The results of the study reveal that;in both the Southern Zone and the Northern Zone of the Techiman Municipality,financial literacy has a positive and statistically significant effect on workers financial capability,there is a significant positive effect of financial skills on workers financial capability,financial behaviour has a positive and statistically significant effect on workers financial capability,and there is a significant positive effect of financial attitude on workers financial capability.The findings suggest that there are benefits of financial literacy,financial skills,financial attitude and financial behaviour to enhancing financial capability.Also,for both workers group in the Southern Zone and the Northern Zone of the Municipality,financial literacy,financial skills,financial behaviour,and financial attitudes impacted the workers’ financial capability differently.The findings show that workers’ financial literacy increases financial capability in the Northern Zone but mitigated the Southern Zone’s financial capability.The financial skills of workers decreased financial capability in the Northern Zone but enhanced the Southern Zone’s financial capability.However,workers’ financial attitude abated financial capability in the Northern Zones while improving Southern Zone’s financial capability.However,the financial behaviour of workers enhanced financial capability in the northern zone was mitigated financial capability in the Southern Zone.Financial capability is desirable for better financial decisions required to access and use financial services;hence,Ghana and other countries need to pursue measures to achieve it.Therefore,it is recommended that the government promote financial literacy,financial skills,financial behaviour,and workers’ financial attitudes.The government should set up an independent agency to lead its National Financial Capability and Financial Inclusion Strategy.The study also recommends that financial education be added to primary and high schools’ formal educational curriculum in Ghana.Again,the study suggests setting up a statutory fund to support financial capability and financial inclusion research.Also,the study recommends the setting up of an ad-hoc committee in parliament to enhance regulatory deliberation of financial capability and financial inclusion initiatives in parliament.Lastly,the research suggests that Ghana’s Central bank develop regulations that require financial services providers to take the lead in enhancing consumer protection awareness for their customers.