Financial Inclusion: Globally Important Determinants

This paper highlights the globally-important determinants of financial inclusion. The determi-nants identified in this paper are formal account ownership; demand for formal savings; demand for formal borrowing; financial literacy and education; debit and credit card usage; the need to receive remittances from family and friends; size of the financial system; number of automated teller machines (ATMs); number of bank branches; proximity to a bank; availability and access to mobile phones; availability of digital financial products and services; technology infrastructure; government policy; culture and traditional belief systems; national financial inclusion strategy and implementation; and direct legislation.

Impact of Psycho-Social Dimensions in Adoption and Use of Credit Cards. An Empirical Study from Pakistan

Purpose: The main purpose of this study is to explore those psycho-social factors which are affecting the usage of credit cards in the present day. Furthermore, it is also aimed to investigate the impact of those factors like parental involvement, religiosity, impulsivity, compulsivity, locus of control, social status, customer attitude and financial distress on credit card usage in the context of Pakistan. Design/Methodology/Approach: For the purpose, the questionnaire has developed and distributed among users of credit cards in Bahawalpur region of Pakistan. This research is quantitative in nature and a probability sampling technique has been used to collect data. Moreover, regression analysis is used Findings: The results reveal that parental involvement, compulsivity, and financial distress have a significant impact on credit card usage. However, the study failed to find out any impact of impulsivity, locus of control and religiosity on credit card usage. Similarly, the customer attitude and social status also did not have any impact on usage of credit cards. Implications/Originality/Value: The results of this study extend help to the banks, financial institutions and, particularly, futures researches in the field of digital currency. It is also pertinent to mention that now it is a need of the time to start working and developing new digital banking tools and ways to compete in the digital world.

Understanding Credit Card Usage Behavior of Elderly Korean Consumers for Sustainable Growth: Implications for Korean Credit Card Companies

The Republic of Korea is the fastest aging country in the world, and its silver market, which is the market segment broadly defined as senior citizens, began to emerge in 2008 as Korean baby boomers started to retire. Given that the assets of households headed by individuals 55 years of age and over are much higher than those of average Korean households, it is essential for Korean financial institutions targeting elderly consumer groups to understand their credit card usage behavior, as it can be very attractive and provide the potential to lead to sustainable growth for institutions, while the market targeting for this group has not been well developed yet. This study examined elderly Korean consumers’ credit card usage behavior in terms of key demographic variables. In this study, we found that the number of cards owned was negatively related to age and positively related to income level. In addition, those who were not retired owned more credit cards than those who were. Although the average monthly expenditure by credit cards was positively related to income, it was not significantly different in terms of age or retirement status. The findings from this research provide significant implications for marketers of credit card companies when searching for key target groups, particularly elderly consumers.

Credit card payments: do cultural values matter? Evidence from the European Union

PurposeThis study analyzes how cultural and social values shape specific attitudes toward credit cards and indebtedness and consumption behavior.Design/methodology/approachThe study uses a panel dataset for a selection of European Union countries from 2003 to 2016. The relation between credit card use and social and cultural attitudes is constructed by controlling for past habits in payment behavior and cross-substitution with alternative payment instruments by employing a dynamic panel data analysis based on the system Generalized Method of Moments (GMM) estimator.FindingsThe total value of credit card payments positively correlated with values emphasizing risk-taking attitudes. When analyzing the propensity of using these instruments for larger purchases, the level of trust is the most relevant predictor. However, the results seemed region-specific with some variables correlating consumption behavior with credit card usage depending on the political and the economic background of the country. Moreover, risk-taking attitudes prevail when they are related to the extent to which countries rely on cash as a preferred payment instrument. Also, credit card usage is mainly explained by past habits and the economic context.Originality/valueThe model expands on previous credit card transaction research by including an additional set of cultural values able to account for the complex nature of payment instruments and their effects on indebtedness and consumption behavior.

Compulsive Buying Behaviour of Credit Card Users and Affecting Factors Such as Financial Knowledge, Prestige and Retention Time: A Cross-sectional Research

A leading concern in client and vender relations is that the rising new situation of influence deploying of the credit card market. This situation is accountable for compulsive buying, which has disapprovingly exaggerated consumers, leading to impossible debt levels. Financial counsellors search for why and how individuals get themselves into financial debt. Compulsive buying behaviour and credit card could have a powerful effect on consumers’ financial stability. Further, in place of comprehending credit card usage and compulsive buying, this study correlates them with wealth attitudes such as power-prestige, financial knowledge and retention time. A cross-sectional descriptive research design using convenience sampling and non-probability sampling with quota samples of 313 credit cardholders was surveyed. The outcome showed that those with power-prestige money attitudes are likely to have free usage of credit cards through compulsive spending. Results also showed that those with a higher financial understanding have lower compulsive spending off the credit card.

A Secured Predictive Analytics Using Genetic Algorithm and Evolution Strategies

In the banking sector, the major challenge will be retaining customers. Different banks will be offering various schemes to attract new customers and retain existing customers. The details about the customers will be provided by various features like account number, credit score, balance, credit card usage, salary deposited, and so on. Thus, in this work an attempt is made to identify the churning rate of the possible customers leaving the organization by using genetic algorithm. The outcome of the work may be used by the banks to take measures to reduce churning rates of the possible customers in leaving the respective bank. Modern cyber security attacks have surely played with the effects of the users. Cryptography is one such technique to create certainty, authentication, integrity, availability, confidentiality, and identification of user data can be maintained and security and privacy of data can be provided to the user. The detailed study on identity-based encryption removes the need for certificates.