Determinants of bank account ownership in Somaliland: a secondary cross-sectional analysis of a national survey

Although bank account ownership has been widely studied, evidence remains limited in fragile and under-researched contexts such as Somaliland. This study examines factors associated with formal bank account ownership using data from the 2020 Somaliland Demographic and Health Survey (SLDHS). The analysis includes 2,095 eligible settled households and employs binary logistic regression, with probit, penalized logistic regression, and linear probability models used as robustness checks. The findings show that age, urban residence, education, male household headship, mobile phone ownership, digital financial behavior, and employment are positively associated with bank account ownership, while household size and internet use are negatively associated. Wealth index, marital status, and age squared are not statistically significant. The negative association between internet use and bank account ownership may reflect greater reliance on mobile money, although alternative explanations remain possible. The findings highlight the importance of accessible formal banking, digital financial services, and targeted outreach in addressing low bank account ownership in Somaliland.