Financial Inclusion in Suriname: Unlocking its Potential

This study analyzes the determinants and distribution of financial inclusion in Suriname using household-level data from the 2022 Suriname Survey of Living Conditions (SSLC). Financial inclusion is defined as access to at least one formal financial product, including transaction or savings accounts, credit, or investment-related financial instruments. The study combines descriptive statistics with a binary logit model to estimate the probability of financial inclusion and identify key socio-economic and demographic drivers. The findings indicate that approximately 58 percent of the population is financially included, although access and effective use remain uneven across population groups. Educational attainment emerges as the most robust and consistent predictor of financial inclusion, followed by wage employment, income level, age, and receipt of social assistance. While differences across gender, ethnicity, and geographic location are observed, these disparities are largely explained by underlying structural factors, particularly access to education, formal labor markets, and financial infrastructure, rather than intrinsic group characteristics. The analysis also highlights a persistent gap between access and usage: despite relatively widespread account ownership, cash remains dominant in day-to-day transactions, limiting the potential development benefits of financial inclusion. The results underscore the importance of policies that go beyond expanding account ownership to address structural constraints that enable effective financial participation. Improving educational attainment, promoting formal employment and stable income channels, expanding last-mile financial infrastructure, and leveraging social transfer programs as entry points into the financial system are critical to fostering inclusive and sustainable financial development in Suriname.