Financial inclusion, financial capability and financial fragility during COVID-19 pandemic

IF 6.3 3区 管理学 Q1 BUSINESS
Kyoung Tae Kim, Jing Jian Xiao, Nilton Porto
{"title":"Financial inclusion, financial capability and financial fragility during COVID-19 pandemic","authors":"Kyoung Tae Kim, Jing Jian Xiao, Nilton Porto","doi":"10.1108/ijbm-07-2023-0373","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>Financial inclusion can be proxied by banking status. The purpose of this study is to investigate the potential effects of financial capability on the financial fragility of US adults with various banking statuses during the COVID-19 pandemic.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>This study utilized the 2021 National Financial Capability Study (NFCS) dataset to investigate the relationship between financial capability and financial fragility among consumers with different banking statuses. The analysis controlled for employment shocks, health shocks and other consumer characteristics. Banking statuses included fully banked, under-banked (utilizing both banking and alternative financial services) and unbanked individuals. Logistic regression analyses were conducted on both the entire sample and subsamples based on banking statuses.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The results showed that financial capability was negatively associated with financial fragility. The magnitude of the potential negative effect of financial capability was the greatest among the fully banked group, followed by the underbanked and unbanked groups. Respondents who were underbanked or unbanked were more likely to experience financial fragility than those who were fully banked. Additionally, respondents who were laid off or furloughed during the pandemic were more likely to experience financial fragility than those without employment shocks. The effect size of financial capability factors was greater than that of COVID-19 shock factors. These results suggest that higher levels of both financial capability and financial inclusion may be effective in reducing the risk of financial fragility.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>This study represents one of the first attempts to examine the potential effects of financial capability on financial fragility among consumers with various banking statuses during the COVID-19 pandemic. Furthermore, this study offers new evidence to determine whether COVID-19 shocks, as measured by health and employment status, are associated with financial fragility. Additionally, the effect size of financial capability factors is greater than that of COVID-19 shock factors. The results from the 2021 NFCS dataset provide valuable insights for banking professionals and public policymakers on how to enhance consumer financial wellbeing.</p><!--/ Abstract__block -->","PeriodicalId":51401,"journal":{"name":"International Journal of Bank Marketing","volume":"26 3","pages":""},"PeriodicalIF":6.3000,"publicationDate":"2023-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Bank Marketing","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1108/ijbm-07-2023-0373","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0

Abstract

Purpose

Financial inclusion can be proxied by banking status. The purpose of this study is to investigate the potential effects of financial capability on the financial fragility of US adults with various banking statuses during the COVID-19 pandemic.

Design/methodology/approach

This study utilized the 2021 National Financial Capability Study (NFCS) dataset to investigate the relationship between financial capability and financial fragility among consumers with different banking statuses. The analysis controlled for employment shocks, health shocks and other consumer characteristics. Banking statuses included fully banked, under-banked (utilizing both banking and alternative financial services) and unbanked individuals. Logistic regression analyses were conducted on both the entire sample and subsamples based on banking statuses.

Findings

The results showed that financial capability was negatively associated with financial fragility. The magnitude of the potential negative effect of financial capability was the greatest among the fully banked group, followed by the underbanked and unbanked groups. Respondents who were underbanked or unbanked were more likely to experience financial fragility than those who were fully banked. Additionally, respondents who were laid off or furloughed during the pandemic were more likely to experience financial fragility than those without employment shocks. The effect size of financial capability factors was greater than that of COVID-19 shock factors. These results suggest that higher levels of both financial capability and financial inclusion may be effective in reducing the risk of financial fragility.

Originality/value

This study represents one of the first attempts to examine the potential effects of financial capability on financial fragility among consumers with various banking statuses during the COVID-19 pandemic. Furthermore, this study offers new evidence to determine whether COVID-19 shocks, as measured by health and employment status, are associated with financial fragility. Additionally, the effect size of financial capability factors is greater than that of COVID-19 shock factors. The results from the 2021 NFCS dataset provide valuable insights for banking professionals and public policymakers on how to enhance consumer financial wellbeing.

2019冠状病毒病大流行期间的金融包容性、金融能力和金融脆弱性
金融普惠可以用银行地位来代表。本研究的目的是调查在COVID-19大流行期间,金融能力对具有不同银行身份的美国成年人的金融脆弱性的潜在影响。本研究利用2021年国家金融能力研究(NFCS)数据集调查了不同银行状况的消费者的金融能力与金融脆弱性之间的关系。该分析控制了就业冲击、健康冲击和其他消费者特征。银行身份包括完全有银行账户、欠银行账户(利用银行和替代金融服务)和无银行账户的个人。根据银行状况对整个样本和子样本进行了逻辑回归分析。研究结果表明,金融能力与金融脆弱性呈负相关。金融能力的潜在负面影响在充分获得银行服务的群体中最大,其次是未获得银行服务的群体和未获得银行服务的群体。银行服务不足或无银行服务的受访者比银行服务充分的受访者更有可能经历金融脆弱性。此外,在大流行期间被解雇或休假的受访者比没有就业冲击的受访者更有可能经历金融脆弱性。经济能力因素的效应量大于冲击因素的效应量。这些结果表明,更高水平的金融能力和金融包容性可能有效降低金融脆弱性风险。独创性/价值本研究是首次尝试研究2019冠状病毒病大流行期间不同银行身份的消费者的财务能力对金融脆弱性的潜在影响之一。此外,本研究还提供了新的证据,以确定以健康和就业状况衡量的COVID-19冲击是否与金融脆弱性有关。此外,财务能力因素的效应量大于新冠肺炎冲击因素的效应量。2021年NFCS数据集的结果为银行业专业人士和公共政策制定者提供了有关如何提高消费者金融福祉的宝贵见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
10.70
自引率
18.90%
发文量
54
期刊介绍: International Journal of Bank Marketing (IJBM) aims to publish papers that relate to the marketing challenges of financial services providers around the globe. Preference is given to empirically-based research papers that expand on existing theories (or develop new ones) on customer behaviour in financial services settings. In addition, the journal is interested in helping academicians and practitioners in the field to better understand the discipline of financial services marketing, and as a result review papers and thought pieces are invited for submission.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信