Financial access and financial behavior

Abstract

Financial access describes the degree to which a consumer has ownership and use of safe, affordable, relevant, and convenient financial products and services. Factors that promote financial access include low cost, low fee products with attractive features from formal financial institutions that have predictable costs, and are convenient and easy to use. This chapter’s purpose is to discuss the research findings of interventions that combine financial behavior and access. Findings suggest that consumer financial behavior has a strong influence on financial access, and vice versa. For example, encouragement and reminders to save within tax filing software result in positive financial behaviors. Needed future research topics include: (1) the impacts of policy decisions to increase financial access; (2) the systematic facilitators and barriers to formal financial institutions; and (3) financial access measurement tools. Evidence is also needed to determine whether fintech adequately addresses financial access challenges.