Towards sustainable financial inclusion in Ecuador: analysis of key factors

Abstract

Financial inclusion is a key component for economic development and reducing inequalities, especially in emerging economies such as Ecuador, where gaps in access to and effective use of formal financial services persist. Objective: To analyze the determining factors of financial inclusion in Ecuador through a multidimensional approach that allows identifying causal relationships between different components of the financial system and their impact on effective access to financial services. Methodology: Quantitative study with cross-sectional design that employed a structural equation model (SEM) to evaluate five dimensions of financial inclusion. The sample included 151 participants from key sectors of the Ecuadorian financial system, selected through stratified sampling. A validated instrument with 19 indicators organized into five latent factors was used, with statistical analysis performed in AMOS 24. Results: The analysis revealed a statistically significant relationship between financial product development and financial inclusion (β = 1.223, p = 0.019). The regulatory framework and supervision achieved the highest level of knowledge (74.05%), while the commitment of public and private sectors presented the lowest performance (52.45%). The SEM model demonstrated adequate fit (RMSEA = 0.054, CFI = 0.939). Conclusions: Innovation in financial products constitutes the determining factor for improving financial inclusion in Ecuador. The results evidence the need to strengthen public-private partnerships and improve inter-institutional coordination to translate regulatory knowledge into effective practical implementation