Abstract:
Financial inclusion is defined as the process that ensures the ease of access, availability,
and usage of formal financial system for all members of an economy. Financial inclusion is
important for sustainable economic growth and the improvement of social well-being. The main
objective of this study was to examine behavioral determinants of financial inclusion in Kaffa
zone. To achieve this objective the study used disruptive and explanatory research design. The
source of data for this study was primary source which was collected from respondents through
structured questionnaire. The study’s target population was composed of individuals above the
age of 18 in kaffa zone. To select a sample respondent multiple stage sampling technique was
used and Data was collected from a total of 374 actual respondents / from three woredas and
one town was used. This data was entered in to SPSS (satirical package for social science) and
analyzed descriptive and inferential statics’. The study used Binary Logistic Regression model.
From this the study results revealed that financial attitude, financial literacy, subjective norm
and the combination of the personal and societal factors significantly and positively contributed
to an individual’s financial inclusion in the study area. The results further revealed that social
network have no significant effect on financial inclusion. The study recommended the following
for concerned bodies. Education should be enhanced to increase financial knowledge of citizens
this also affect financial inclusion. And also policy makers need to design financial inclusion
policies and adopt strategies and financial institutions should need to continuously design
financial literacy programs among the distinct income segment and location
