Financial accessibility in branchless municipalities: an analysis for Andalusia

Financial accessibility as a way of ensuring financial inclusion has received increasing attention. However, most of studies have drawn attention to the likelihood of becoming branchless and not on the differential characteristics of branchless municipalities. The aim this paper is to assess financial accessibility in branchless municipalities of the most populated region of Spain, Andalusia, and to examine their distribution across space. To that end, we identify the nearest bank branch for each branchless municipality. In addition, we incorporate socio-economic characteristics of each municipality in order to identify different groups of branchless municipalities. The results obtained suggest that there are substantial differences across branchless municipalities. In particular, we identify two degrees of financial accessibility: moderate and poor. Population dynamics are revealed as a key factor in explaining financial accessibility although this can be ameliorated by a higher per capita income and a greater industrial specialization. From a territorial point of view, we find a high concentration of branchless municipalities across space. Some initiatives should be taken in order to avoid that people become financially excluded. In this sense, local action groups responsible for rural development policies could identify the main negative effects and propose the most suitable alternative services.