Impact of remittances on access to financial services: a case study of Hueyapan de Ocampo, Veracruz

Abstract

This study analyzes the impact of remittances on access to financial services and their relationship with the financial inclusion of households in Hueyapan de Ocampo, Veracruz, through a comparison between remittance-receiving and non-remittance-receiving households. A quantitative approach was employed using survey data and a Logistic Regression (Logit) model, in which financial inclusion was defined as a binary dependent variable. The findings indicate that the dimensions of access to and use of financial services have positive and statistically significant effects on the probability of financial inclusion. Likewise, consumer protection shows a positive and significant relationship, highlighting the importance of trust and security in the use of formal financial services. In contrast, the remittances variable was not statistically significant in the estimated model, providing insufficient evidence to support a direct effect on the financial inclusion of the analyzed households. Nevertheless, remittances may serve as a complementary mechanism by increasing the availability of financial resources and creating conditions that encourage some households to engage with formal financial services. Overall, the results suggest that financial inclusion in Hueyapan de Ocampo depends primarily on effective access to financial services, their use, and institutional trust rather than on remittance receipt alone.