Automatic Bill Payments and Financial Inclusion: Empirical Evidence in Chile

Abstract

The aim of this paper is to identify the determinants that affect the probability of using automatic bill payments in Chilean households. Data from the Household Financial Survey (HFS) of the Central Bank of Chile, 2014 are used. Sociodemographic and financial behavior variables are incorporated to detect gaps in inclusion in this matter. A binary logit model is used for the estimation of marginal effects. The results indicate that the probability of using automatic bill payments in Chilean households increases with age, years of education of the head of household, pref- erence for risk, good saving habits; and presents a non-linear relationship with indebtedness.