Financial Inclusion in Rural South Africa: A Qualitative Approach

Financial inclusion efforts have resulted in a rapid increase access to financial services. However, the usage of these services has not expanded at same pace, especially rural areas. The paper explores factors that caused lag behind using qualitative approach. Data is collected from two predominantly provinces South Africa focus group discussions. While supply-side distance and transaction costs are important, demand-side factors, including lack employment, low irregular incomes, illiteracy, risk trust perceptions, play more significant role. We suggest creating an enabling environment for development mobile money could overcome proximity barriers result better communities. There need invest technology improve network Internet reception In addition, government needs reconsider exclusive issuance e-money by banks. Partnerships with supermarket markets also potential expand inclusion. Moreover, post-adoption education should complement Simplified transparent cost structures help resolve mistrust