The marketplace vulnerability of low-income unbanked consumers : a developing country perspective
Financial exclusion is recognised as an important element of socio-economic inequality
where economically vulnerable groups are excluded from basic financial services. The issue
of financial exclusion is mainly concentrated in the world’s developing countries.
However, research on the issue of financial exclusion in the field of marketing as well as
from the perspective of unbanked consumers is lacking. Although financial exclusion
impedes low-income consumers’ welfare, there is a shortage of wellbeing related studies
on low-income consumers in the context of developing countries. This doctoral dissertation
aims to investigate the ways in which low-income unbanked consumers experience
vulnerability in their routine lives owing to their financial exclusion. The primary data was
gathered from unbanked consumers through semi-structured in-depth interviews.
This dissertation is comprised of four research articles. Overall, the findings explicate
that low-income unbanked consumers are prone to experience marketplace vulnerability.
First, the findings indicate that low-income unbanked consumers lose control of their daily
financial matters and experience powerlessness, i.e. different types of detriment in their
personal, social and economic lives. Second, they utilise various accessible and viable
resources to take control of their ordinary financial affairs and to cope with their financial
exclusion. Nevertheless, the limited skills and resources of low-income consumers often
prevent them from effectively coping with the issue of financial exclusion. Hence, they
often experience vulnerability in their ordinary lives due to financial exclusion. Third, the
informal economic institutions, i.e. rotating savings and credit associations
(ROSCAs)/Committees, can neither substitute for the formal financial institutions nor
routinely facilitate their unbanked members to control and manage their routine financial
matters. The unbanked participants often encounter several types of difficulties and risks in
saving money and accessing short-term credit through Committees. Thus, financial
exclusion remains a source of vulnerability for low-income consumers. Lastly, the findings
indicate that problems in the justice elements of banks impede the financial inclusion of
less affluent consumers. They perceive that banks treat them unfairly, and those
perceptions contribute to their experiences of vulnerability.
This doctoral dissertation contributes to financial exclusion literature by
investigating the factors which render low-income consumers unbanked and highlights
their difficulties in managing day-to-day financial affairs. It contributes to consumer
vulnerability literature by highlighting their experience of vulnerability owing to their
vulnerable economic circumstances and marketplace unfairness. The four studies included
in this dissertation offer a number of practical implications, which could be utilised to
facilitate the financial inclusion and wellbeing of economically vulnerable consumers.
Finally, this doctoral dissertation encompasses a discussion on the study’s limitations and,
subsequently, a number of future research studies are proposed.
...


Publisher
Jyväskylän yliopistoISBN
978-951-39-7510-4ISSN Search the Publication Forum
2489-9003Contains publications
- Artikkeli I Kamran, S., & Uusitalo, O. (2016). Vulnerability of the unbanked : evidence from a developing country. International Journal of Consumer Studies, 40 (4), 400-409. DOI: 10.1111/ijcs.12277
- Artikkeli II Kamran, S., & Uusitalo, O. (2016). How the unbanked cope with financial exclusion: Evidence from Pakistan. Journal of Financial Services Marketing, 21 (2), 153-165. DOI:10.1057/fsm.2016.6
- Artikkeli III Kamran, S. (2017). ROSCAs Role in Facilitating Control to the Unbanked : Evidence from Pakistan. Electronic Journal of Business Ethics and Organization Studies, 22 (2), 4-13 http://ejbo.jyu.fi/pdf/ejbo_vol22_no2_pages_4-13.pdf
- Artikkeli IV Kamran, S., & Uusitalo, O. (2019). Banks’ unfairness and the vulnerability of low-income unbanked consumers. Service Industries Journal, 39 (1), 65-85. DOI: 10.1080/02642069.2018.1436704
Keywords
pankittomuus pankkitilittömyys financial exclusion unbanked vulnerability powerlessness coping strategies ROSCAs rotating savings and credit associations justice theory fairness banks developing country Haastattelututkimus kuluttajat pienituloiset pankkipalvelut pankit ulkopuolisuus eriarvoisuus haavoittuvuus selviytyminen kehitysmaat taloudellinen asema pankkitilit Pakistan
Metadata
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- JYU Dissertations [694]
- Väitöskirjat [3295]
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