Title | Determinants of access to finance : an investigation into the Mzansi intervention |
Publication Type | Journal Article |
Year of Publication | 2012 |
Authors | Kostov, P, Arun, T, Annim, S |
Pagination | p. 397 - 412; 2 tab. |
Date Published | 2012-07-01 |
Publisher | European Association of Development Research and Training Institutes |
Place Published | Basingstoke, UK |
Keywords | decision making, financial management, low-income communities, south africa |
Abstract | This article aims to understand low-income household's latent behaviour in decision making around accessing financial services. We analyse the determinants of choice surrounding the pre-entry level bank account, Mzansi, by consumers in South Africa. Removing barriers to accessing finance should arguably generate large beneficial effects for low-income households, whereby the Mzansi account functions as the first step on the financial ladder for the previously unbanked. However, while previous research has focused primarily on supply-side barriers to accessing finance, based on assumptions that demand-side barriers are non-existent, we question this assumption and identify consumers’ financial perceptions and attitudes as a significant influence in determining demand for financial services among low-income households. Consequently, we argue that removing supply side constraints on its own is insufficient as a means to expand access to finance in developing countries. [authors abstract] |
Notes | With 11 references |
Custom 1 | 150 |