Low-income consumers’ informal and formal financial service experiences: perceptions of access, inclusion, and social dependence

Abstract

Purpose Low-income consumers’ perceptions of access and inclusion in financial services, remain underresearched. To fill this gap, the purpose of this study, is to investigate elements of low-income consumers’ informal and formal financial service experiences, from their personal experience. Design/methodology/approach Mixed methods using data collected from low-income consumers in Latin America, reveal a spectrum of consumer perceptions making up access, inclusion and social dependence within financial service experiences. Scales, grounded in the consumer experience, are developed, validated and used to test a model of consumers’ service inclusivity perceptions. Findings Service costs, information and documentation difficulty, convenience and social dynamics influence low-income consumers’ perceptions of financial service inclusivity. Research limitations/implications Analysis reveals differentiation in the impact of aspects of low-income consumers’ experiences between formal and informal financial services. Working directly with this unique population exposes the nuance of their financial service experiences. Practical implications This research provides a more holistic perspective on low-income consumers’ financial service experience and provides contextually relevant scales with robust psychometric properties. Services marketers can use this research to inform design and evaluation of financial service offerings for low-income consumers. Originality/value This research contributes to study of the wellbeing of low-income consumers by providing understanding of their financial service experiences from their point-of-view and providing contextually-relevant, empirically validated tools for future inquiry.