Bank Account Access Methods, Household Financial Well-Being, and Alternative Financial Services

2021 ◽  
pp. 1-27
Author(s):  
Julie Birkenmaier ◽  
Qiang (John) Fu
Keyword(s):  
Financial Services ◽  
Well Being ◽  
Bank Account ◽  
Access Methods ◽  
Alternative Financial Services

scholarly journals Does Access to Bank Accounts as a Minor Improve Financial Capability? Evidence from Minor Bank Account Laws

2021 ◽  
Vol 2021 (072) ◽  
pp. 1-33
Author(s):  
J. Michael Collins ◽  
◽  
Jeff Larrimore ◽  
Carly Urban ◽  
◽  
...  
Keyword(s):  
Financial Services ◽  
Negative Consequences ◽  
Policy Goal ◽  
Bank Account ◽  
State Laws ◽  
Alternative Financial Services ◽  
Short Run ◽  
Credit Scores ◽  
Bank Accounts ◽  
A Minor

Banking the unbanked is a common policy goal, but should this include access to bank accounts for minors? This study estimates how teenagers' access to bank accounts affects their financial development. Using variation in state laws, we show policies that permit access to independently-owned accounts increase account ownership at age 16 through age 19, although by age 24 those young adults are banked at similar rates to teens who grew up in states that do not allow minors to own accounts independently. Teens who had access to independently-owned accounts use fewer high-cost alternative financial services (like payday loans) through age 20—but are then more likely to use AFS, particularly check-cashing services, from age 21 through 24. Using credit records, we show that access to non-custodial accounts has no effects on credit scores in the short-run, but lower credit scores and more loan delinquencies at ages 21 through 24. While these state laws promote financial inclusion for teenagers, the young people who take on accounts may experience negative consequences in the longer run.

Financial Inclusion and Financial Access

2019 ◽  
Author(s):  
Julie Birkenmaier ◽  
Mathieu Despard ◽  
Terri Friedline ◽  
Jin Huang
Keyword(s):  
Financial Services ◽  
Well Being ◽  
Financial Inclusion ◽  
Financial Access ◽  
Financial Products ◽  
Consumer Loans ◽  
Savings Accounts ◽  
Alternative Financial Services ◽  
Small Business Loans ◽  
Institutional Actors

Financial inclusion, the goal of financial access, broadly refers to the ability of all people in a society to access and be empowered to use safe, affordable, relevant, and convenient financial products and services for achieving their goals. Financial inclusion promotes household and societal financial well-being and requires access to an array of financial products and services such as savings accounts, credit cards, mortgage and small business loans, and small-dollar consumer loans. Despite the advantages, too many individuals and households lack financial inclusion and access by being unbanked, underbanked, and/or they are forced to use alternative financial services. Achieving financial inclusion will require participation from many different types of formal financial institutional actors, such as banks, credit unions, community development financial institutions, and national credit bureaus. Social work assists to build financial inclusion and access through practice innovations, research, and policy advocacy.

scholarly journals Behavioural and Psychological Factors That Influence the Usage of Formal Financial Services Among the Low Income Households

2020 ◽  
Vol 11 (5) ◽  
pp. 326
Author(s):  
Binoy Thomas ◽  
P. Subhashree
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Psychological Factors ◽  
Financial Inclusion ◽  
Bank Account ◽  
Policy Makers ◽  
Actual Usage ◽  
Alternative Financial Services ◽  
Recent Initiative ◽  
Low Income Households

The emerging economies need to frame and implement effective financial inclusion policies for sustainable development and growth. Recent initiative of India that every Low Income Households (LIHs) has a bank account is a sweeping success; but the flipside is that half of these accounts are either inactive or less active, which raises concern. In this context, this research attempts to identify the behavioural and psychological factors that influence the usage of formal financial services (FFS) among LIHs in India. Theory of Planned Behaviour is used as the base theoretical model, in which ‘Habit’ was introduced as a moderating variable that interacts with Behavioural Intention to influence Actual Usage. Data was collected from 253 respondents and analysed using SmartPLS 3.0. This study revealed that the exogenous variables Attitude, Subjective Norms, Perceived Behavioural Control positively influenced the intention to use FFS; moreover, Habit negatively moderated the BI-AU relationship. Therefore, the policy makers on financial inclusion drive may consider these identified factors in their mission to improve the usage of FFS among LIHs, and to curtail the informal or alternative financial services.

The Negative Association between Alternative Financial Services Usage and Financial Well-Being: Variations by Income

2020 ◽  
Vol 44 (3) ◽  
pp. 183-195
Author(s):  
Zibei Chen ◽  
Michelle Livermore
Keyword(s):  
Financial Services ◽  
Credit Card ◽  
Work Practice ◽  
Well Being ◽  
Banking Regulation ◽  
Social Work Practice ◽  
Financial Security ◽  
Credit Score ◽  
Alternative Financial Services

Abstract As reliance on alternative financial services (AFS) usage continues its exponential expansion among American families, policy debates over banking regulation perdure with limited empirical understanding of how usage affects individuals’ financial lives. Using data from the 2014 Survey of Household Economics and Decisionmaking, this study explored the association between AFS use and financial well-being using a nationally representative sample (N = 5,896). It also examined the role of household income in AFS use and its relation to financial well-being. Results from regression analyses indicated that AFS use was negatively associated with present financial security measured by credit score, making ends meet, subjective financial well-being, and credit card payment, and that future financial security was measured by having an emergency fund and a rainy-day fund. Moreover, the interaction models showed that lower-income groups had the most negative associations between AFS and most financial well-being indicators, suggesting a substantive role of income in exacerbating the negative relationships. This was the first known study linking use of AFS and household financial well-being with a focus on the role of income. The article concludes with a discussion of implications for policy and social work practice.

Achieving Financial Inclusion for Persons With Disabilities: Exploring Preparedness and Accessibility of Financial Services for Persons With Disabilities in Malawi

2021 ◽  
pp. 104420732110275
Author(s):  
Alex Nester Jiya ◽  
Maxwell Peprah Opoku ◽  
William Nketsia ◽  
Joslin Alexei Dogbe ◽  
Josephine Nkrumah Adusei
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Commercial Banks ◽  
Empirical Studies ◽  
Well Being ◽  
Living Conditions ◽  
Inclusive Development ◽  
Future Research ◽  
Structured Interviews ◽  
Persons With Disabilities

Deplorable living conditions among persons with disabilities and the need to improve their living conditions cannot be overemphasized. This has triggered international discussion on the need for deliberate social policies to bridge the poverty gap between persons with and without disabilities. In Malawi, expansion of financial services has been identified as an essential tool to accelerate economic and inclusive development. However, empirical studies are yet to explore the preparedness of financial institutions to extend their services to persons with disabilities. In this qualitative study, semi-structured interviews were conducted with managers from commercial banks in Malawi to understand their perspectives on extending financial services to persons with disabilities. Interviews were transcribed verbatim and a descriptive thematic analysis was performed. Although participants reiterated the need to provide persons with disabilities with financial services to improve their well-being, few initiatives have been undertaken to improve their participation. Particularly, participants stated that barriers, such as a lack of financial literacy and adaptive technologies, communication barriers, and high rates of unemployment, explained the reluctance of commercial banks to extend financial services to persons with disabilities. The limitations, recommendations for future research, and implications of the study for policymaking have been highlighted.

Bank Branches and COVID-19: Where are Banks Closing Branches during the Pandemic?

FEDS Notes ◽  
2021 ◽  
Vol 2021 (3025) ◽  
Author(s):  
Kimberly Kreiss ◽  
Keyword(s):  
Financial Services ◽  
Online Banking ◽  
Bank Account ◽  
Bank Branches ◽  
Steady Rate

In the decade prior to the COVID-19 pandemic, bank branches were closing at a steady rate. Additionally, households with a bank account increasingly adopted mobile or online banking for at least a portion of their banking needs. As COVID-19 dramatically changes the desire and willingness for consumers to have in-person interactions, it may accelerate both of these trends and lead to a permanent shift in how people access financial services.

scholarly journals ISLAMISASI ILMU EKONOMI

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
IRFAN SAUQI BEIK
Keyword(s):  
Financial Services ◽  
Human Life ◽  
Well Being ◽  
Poverty Measurement ◽  
Measurement Tool ◽  
Human Needs ◽  
Body Of Knowledge

Abstract. Islamization of Economics. Islamic doctrine teaches all areas of human life. How to extract economic principles in the Qur'an and hadith are the biggest challenge todays, and then makes it into a body of knowledge as well to build it into a theoretically and practically discipline that differ significantly from the schools of the existing the conventional economics. But the critique and issue come up those Islamic financial services only "follow" the conventional economics, so the scientific originality is often questionable. In the process of Islamization economy, which has been carried out, namely through the development of well-being and poverty measurement tool that is based on the concept with CIBEST Model. CIBEST Model is an effort to develop a welfare approach to poverty based on the conception that a tool to measure well-being and poverty are not solely based on purely material, but also spiritual approach. It is based on the concept of fulfillment, where the al-Qur’an and Hadith has outlined those basically human needs consists of two things, the material and spiritual needs.Abstrak. Islamisasi Ilmu Ekonomi. Islam merupakan ajaran yang mencakup seluruh bidang kehidupan. Tantangan terbesar saat ini adalah bagaimana mengekstraksi prinsip-prinsip ekonomi dalam Al-Qur’an dan hadits, kemudian menurunkannya menjadi sebuah body of knowledge sekaligus membangunnya menjadi sebuah disiplin ilmu yang secara teoritis dan praktis berbeda signifikan dengan mazhab-mazhab ilmu ekonomi konvensional yang ada. Namun muncul kritik bahwa ekonomi syariah hanya “mengekor” ekonomi konvensional semata, sehingga orisinalitas keilmuannya sering dipertanyakan. Dalam proses islamisasi ekonomi, yang telah dilakukan, yaitu melaui pengembangan alat ukur kesejahteraan dan kemiskinan yang didasarkan pada konsep syariah dengan Model CIBEST. Model CIBEST adalah upaya untuk mengembangkan pendekatan kesejahteraan kemiskinan yang didasarkan pada konsepsi bahwa alat untuk mengukur kesejahteraan dan kemiskinan tidak semata mata didasarkan pada material semata, namun juga pendekatan spiritual. Hal ini didasarkan pada konsep pemenuhan kebutuhan, dimana al-Quran dan Hadis telah menggariskan bahwa pada dasarnya kebutuhan manusia terdiri atas dua hal, yaitu kebutuhan material dan spiritual.

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