Closing the Financial Inclusion Gap by Understanding What Factors Drive Consumer Selection of Financial Service Providers
AuthorWilliams, Sherry Lee
AdvisorHill, Theodore L.
Committee memberMudambi, Susan
DepartmentBusiness Administration/Strategic Management
Alternative Financial Services
Choice of Financial Services Provider
Financial Services Provider
Permanent link to this recordhttp://hdl.handle.net/20.500.12613/4040
MetadataShow full item record
AbstractThis research seeks to determine what factors and combinations of banking features drive the choice of a financial service provider. Two studies have been devised to explore the research question. The initial study, uses factor analysis and logistic regression to examine the importance of perceived cost, convenience, and relational trust in the choice of a financial services provider. An additional study uses choice-based conjoint analysis to conduct an exploratory study to identify combinations of banking features that potential customers perceive as most attractive. The study simulates real-world buying situations that ask research participants to trade one financial services attribute for another. Results from the first study suggest that a consumer’s choice of banks, prepaid cards, online lending, and the US Postal Service for financial services is associated with a preference for convenience while relational trust and perceived cost drives the choice of “street” AFS providers. In the second study, results from the choice-based conjoint analysis suggest that fees are significantly more important than convenience and level of customer contact across all categorical variables (age, gender, race/ethnicity, employment, income, and education). Additionally, in-person customer service contact is considered more important than convenience. Understanding these factors, optimal combinations and proportions, and trade-offs through the eyes of the consumer, may be of value to both policy makers and industry officials alike when grappling with options to strengthen financial inclusion.
ADA complianceFor Americans with Disabilities Act (ADA) accommodation, including help with reading this content, please contact firstname.lastname@example.org
Showing items related by title, author, creator and subject.
Paid Your Debt to Society? Legal Financial Obligations and Their Effects on Former PrisonersRoman, Caterina Gouvis, 1966-; Ward, Jeffrey T.; Welsh, Wayne N., 1957-; Visher, Christy Ann (Temple University. Libraries, 2017)Within the last decade, scholars and practitioners alike have noted a surge in the use of legal financial obligations (LFOs) in criminal justice processing. These include fines, fees, and costs that are applied to defendants’ cases from “upstream” agencies such as police departments to “downstream” agencies including jails, prisons, probation and parole agencies, and treatment centers. Legal financial obligations can be large, and the result is that outstanding balances often accumulate into unwieldy amounts of criminal justice debt. Recently, a small handful of qualitative studies have shown that these LFOs and debts can have adverse impacts on returning prisoners and their families, including increased stress, strained family relationships, worsened depression, and longer periods spent under criminal justice surveillance for those too poor to pay off outstanding balances. In addition, some of this work suggests that these financial obligations can increase the likelihood of returning to crime. This dissertation expands on the major contributions of these recent qualitative works by addressing the lack of quantitative research in this area. Toward this end, longitudinal data from the Returning Home Study (n=740) and structural equation modeling (SEM) techniques are used to test whether LFOs and debt indeed have adverse impacts on key outcomes of interest in reentry research, including family relationships, depression, justice involvement/entanglement, and recidivism. Findings reveal partial support for past research and theory. Legal financial obligations do not appear to have impacts on depression, family conflict, and several measures of recidivism on average. However, outstanding debt owed to community supervision agencies (i.e., probation/parole/mandatory community supervision) significantly increases the likelihood of remaining under supervision, which, in turn, increases the likelihood of returning to prison. Implications for decision-making bodies from state legislatures to corrections agencies are discussed.
FINANCIAL LITERACY AND THE FINANCIAL DECISION MAKING OF INDIVIDUALS IN UNDERSERVED COMMUNITIESMudambi, Susan; Eisenstein, Eric; Reeck, Crystal; Schuff, David (David Michael) (Temple University. Libraries, 2017)Better access to financial literacy programs in underserved communities has the potential to improve financial decision making and to help individuals and families escape poverty. This multimethod dissertation explores some of the challenges of developing financial literacy programs for underserved individuals and provides insights into the cultural and institutional factors that discourage financial literacy and sound financial decision making. This research re-examines the construct of financial literacy, reviews relevant past research, and presents a conceptual model with hypotheses regarding factors that affect financial literacy. To test the model, multiple studies were conducted in underserved communities in rural and urban areas to understand the complexity of the relationship between financial literacy and financial decision making. These studies were supplemented by a series of in-depth interviews with financial literacy experts, community leaders, and underserved individuals. The results indicate the importance of refining both financial literacy instruments and training to rural and urban underserved communities, while also building stronger ties to community leaders and financial institutions.
Impact of Microfinance Institutions for Female Entrepreneurs: Evidence from Philadelphia, PennsylvaniaNaveen, Lalitha; Mao, Connie X.; Schmidt, Stuart M.; Mudambi, Susan (Temple University. Libraries, 2019)Microfinance encompasses a broad range of financial services targeted at low income individuals seeking to build income and assets. There has been extensive research on the role of microfinance institutions (henceforth “MFIs”) in developing countries on poverty reduction, particularly for female clients. In contrast, research on MFIs operating within the United States is more limited. This study seeks to fill this gap in the literature and is one the first to focus on the impact of an MFI on female clients in the US using data from a Philadelphia-based MFI. The study examined the factors affecting outcomes of female entrepreneurs as compared to their male counterparts measured by changes in financial capability, repayment history, household incomes, and sustainability. Although the study does not statistically support the existence of differences between the outcomes for female and male clients of the MFI, the data does indicate positive outcomes for the clients. The business survival rates on average are above national indicators. The personal credit scores for MFI clients reflect improvement subsequent to receiving loans. This study utilized survey instruments and a focus group study to identify barriers to the success of female entrepreneurs. Noted barriers such as lack of access to capital, lack of relevant business knowledge provide a foundation for future research study.