ABSTRACT

This study is focus over explaining the measurement of quality indicator/dimension of financial inclusion in Bari Imam (Islamabad). Where three categories of quality indicator are considered. Categories include Financial Literacy and Capability, Market Conduct and Consumer Protection, and Barrier to Use. First two categories are divided into further two sub-category as financial literacy and capability is divided into Financial Knowledge, and Financial Behavior and market conduct and consumer protection into Disclosure Requirement, and Internal Dispute Resolution. For barrier to use, distance is considered barrier for this study. Structural Equation Modeling is used to analyze the data. Data is collected through questionnaire survey from adults of Bari Imam. After using Partial Least Square- Structural Equation Modeling, the result outcomes as Financial Knowledge, Disclosure Requirement, Internal Dispute Resolution, and Distance show significant influence over Quality Indicator of Financial Inclusion and Financial Behavior has insignificant effect over Quality Indicator of Financial Inclusion. Further three items are explained on bases of gathered data as source of exploration and put aside from structural equation modeling. This effort provide an initial idea both to literature for measuring the demand side of financial inclusion in addition to supply side through using quality dimension because among five subcategories four show positive impact over measuring the state of financial inclusion. For practitioners it recommend to use statistical data that institutes have kept aside from the research organizations and also avoid to provide information about dormant accounts and operating data of consumers related to use of financial products and services.