Drivers of Financial Inclusion in the United States: A Structural and Empirical Analysis

This study analyzed U.S. financial inclusion from 2010-2023, examining how macroeconomic development, institutional quality, and digital infrastructure impact it. Findings indicate that while economic development is a primary driver, digital infrastructure and institutional quality have a greater marginal impact, especially for underserved groups. Governance effectiveness showed the highest impact (0.391), followed by internet usage (0.214) and mobile banking (0.067). The robust fixed-effects model (R 2 >0.87) consistently demonstrated the significance of these factors. States like Massachusetts and Minnesota, with strong regulatory policies and high digital adoption, exhibit superior financial inclusion, whereas Mississippi and Arkansas lag due to poor broadband and institutional capacity. The research highlights the crucial roles of trust in institutions and internet access for improving financial inclusion. It proposes an integrated policy approach combining economic growth, technological advancement, and institutional reform to address regional disparities in financial access, offering practical guidance for policymakers.