Barriers of financial inclusion in Algeria: case study Ain Kercha Municipality, Oum El Bouaghi Province

Abstract

This study investigated the issue of financial inclusion in Algeria, with a focus on identifying the main barriers that prevented individuals from accessing and using formal financial services. A quantitative approach had been employed, using data collected through a structured questionnaire administered to a sample of 203 residents of the Ain Kercha municipality, Oum El Bouaghi province, located in the eastern part of Algeria. The selection of Oum El Bouaghi province had been motivated by its socio-economic characteristics, which presented a mix of urban and rural areas, providing a representative context for examining the diverse challenges to financial inclusion across different segments of the Algerian population. Data were analyzed using SPSS version 27, and a convenience sampling method was utilized. The findings revealed that the most commonly cited barriers were religious reasons, lack of money, and perceiving no need for financial services. Financial literacy also played a key role, in addition to socio-demographic characteristics. In contrast, other widely assumed barriers, such as distance, lack of documentation, and lack of trust, were reported less frequently. These results highlighted the importance of addressing both voluntary and involuntary barriers to improve financial inclusion in Algeria. To mitigate financial exclusion, policies should have prioritized enhancing financial literacy through targeted educational programs, particularly in rural areas and among vulnerable socio-economic groups.