Analysis of the Ownership of Financial Products: Evidence to Contribute to Financial Inclusion in Bolivia

This paper analyzes the determinants of owning financial products as opposed to not owning any, placing special emphasis on variables such as households’ socioeconomic level, education, and financial literacy. To complement this, the behavior of households was assessed in relation to their ownership of informal products, and their ownership of formal products together with informal ones, evaluating the outcomes using the same set of variables. The results showed that ownership of financial products in Bolivia mostly depends on households’ socioeconomic level. It was seen that women are more likely than men to own informal financial products. Moreover, households with a low socioeconomic level and adults with a primary education level are the most likely to use these types of products. In the case of financial literacy, the likelihood of using these products was similar for people with medium to high literacy. As for owning informal and formal products together, a growing probability was observed, but it was only significant for households with lower-middle and upper-middle socioeconomic level. Adults with only a secondary education level are more likely to acquire both products, while people with medium and high financial literacy are similarly likely to own such products.