IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v139y2018i3d10.1007_s11205-017-1770-6.html
   My bibliography  Save this article

Household Financial Access and Use of Alternative Financial Services in the U.S.: Two Sides of the Same Coin?

Author

Listed:
  • Julie Birkenmaier

    (College for Public Health and Social Justice)

  • Qiang Fu

    (College for Public Health and Social Justice)

Abstract

Financial access, or the household use of formal financial services, includes the ability to access transaction, credit, and investment products and services from formal financial institutions. In contrast, households that use Alternative Financial Services (AFS), or products and services from non-bank sources, lack full financial access and are considered financially excluded. Financial access is a necessary component of strong household financial well-being. Some researchers discuss the two as opposite sides of the same construct, or “two sides of the same coin” because they are closely related features of one idea. Using national data from the 2015 Financial Capability Study (n = 27,564), this study sought to explore the nature of the relationship between financial access and AFS use using confirmatory factor analysis. Results suggest that the two concepts are weakly and positively related, which suggests that they are not “two sides of the same coin”. The determinates of AFS use are complex, and may include social factors. A holistic approach to expanding financial access may be most effective. Policy implications are also discussed.

Suggested Citation

  • Julie Birkenmaier & Qiang Fu, 2018. "Household Financial Access and Use of Alternative Financial Services in the U.S.: Two Sides of the Same Coin?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1169-1185, October.
    • Handle: RePEc:spr:soinre:v:139:y:2018:i:3:d:10.1007_s11205-017-1770-6
    DOI: 10.1007/s11205-017-1770-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-017-1770-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-017-1770-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brian Barry, 1998. "Social Exclusion, Social Isolation and the Distribution of Income," CASE Papers 012, Centre for Analysis of Social Exclusion, LSE.
    2. James Devlin, 2005. "A Detailed Study of Financial Exclusion in the UK," Journal of Consumer Policy, Springer, vol. 28(1), pages 75-108, December.
    3. Smriti Rao & Hazel Malapit, 2015. "Gender, Household Structure and Financial Participation in the United States," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 606-620, December.
    4. Marta Cuesta González & Cristina Ruzay Paz-Curbera & Beatriz Fernández Olit, 2016. "Banking System and Financial Exclusion: Towards a More Comprehensive Approach," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Santiago Carbó Valverde & Pedro Jesús Cuadros Solas & Francisco Rodríguez Fernández (ed.), Liquidity Risk, Efficiency and New Bank Business Models, chapter 6, pages 127-161, Palgrave Macmillan.
    5. World Bank Group, 2016. "Enhancing Financial Capability and Inclusion in Azerbaijan," World Bank Publications - Reports 24955, The World Bank Group.
    6. Sabrina Bunyan & Alan Collins & Gianpiero Torrisi, 2016. "Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City," Journal of Consumer Policy, Springer, vol. 39(2), pages 199-221, June.
    7. Barry, Brian, 1998. "Social exclusion, social isolation and the distribution of income," LSE Research Online Documents on Economics 6516, London School of Economics and Political Science, LSE Library.
    8. Laura Lamb, 2016. "Financial exclusion and financial capabilities in Canada," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 8(2), pages 212-227, May.
    9. Santiago Carbó Valverde & Pedro Jesús Cuadros Solas & Francisco Rodríguez Fernández (ed.), 2016. "Liquidity Risk, Efficiency and New Bank Business Models," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-3-319-30819-7, September.
    10. Yoshino, Naoyuki & Morgan, Peter J., 2016. "Overview of Financial Inclusion, Regulation, and Education," ADBI Working Papers 591, Asian Development Bank Institute.
    11. Brian Barry, 1998. "Social Exclusion, Social Isolation and the Distribution of Income," CASE Papers case12, Centre for Analysis of Social Exclusion, LSE.
    12. Jann Goedecke & Isabelle Guérin & Bert D 'Espallier & Govindan Venkatasubramanian, 2018. "Why do financial inclusion policies fail in mobilizing savings from the poor ? Lessons from rural South India," Post-Print ird-01413177, HAL.
    13. Georges Gloukoviezoff, 2007. "From Financial Exclusion to Overindebtedness: the Paradox of Difficulties for People on Low Incomes?," Springer Books, in: Luisa Anderloni & Maria Debora Braga & Emanuele Maria Carluccio (ed.), New Frontiers in Banking Services, chapter 5, pages 213-245, Springer.
    14. J Neill Marshall, 2004. "Financial Institutions in Disadvantaged Areas: A Comparative Analysis of Policies Encouraging Financial Inclusion in Britain and the United States," Environment and Planning A, , vol. 36(2), pages 241-261, February.
    15. A Leyshon & N Thrift, 1996. "Financial Exclusion and the Shifting Boundaries of the Financial System," Environment and Planning A, , vol. 28(7), pages 1150-1156, July.
    16. Nathaniel Karp & Boyd Nash-Stacey, 2015. "Technology, Opportunity & Access: Understanding Financial Inclusion in the U.S," Working Papers 1525, BBVA Bank, Economic Research Department.
    17. Donncha Marron, 2013. "Governing Poverty in a Neoliberal Age: New Labour and the Case of Financial Exclusion," New Political Economy, Taylor & Francis Journals, vol. 18(6), pages 785-810, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomasz Potocki & Sylwester Białowąs, 2023. "What Factors Predict a Positive Change in a Consumer’s Financial Capability over Time? The New Evidence from Poland," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 634-654, September.
    2. Shahid Manzoor Shah & Amjad Ali, 2022. "A Survey on Financial Inclusion: Theoretical and Empirical Literature Review," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 310-330, December.
    3. Kyoung Tae Kim & Soo Hyun Cho & Sharon A. DeVaney, 2021. "Racial/ethnic differences in holding a retirement saving motive: A decomposition analysis," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 464-482, June.
    4. Ian Dunham & Alec Foster, 2023. "FRINGE FINANCIAL ECOLOGIES AND PLACE‐BASED EXCLUSION: A Tale of Two Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 47(6), pages 881-898, November.
    5. Anderson, Michael H. & Jackson, Raymond, 2021. "Option value and auto title loans," Journal of Economics and Business, Elsevier, vol. 117(C).
    6. J. Michael Collins & Sarah Halpern-Meekin & Melody Harvey & Jill Hoiting, 2023. "“I Don’t Like All Those Fees” Pragmatism About Financial Services Among Low-Income Parents," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 807-820, December.
    7. Kyoung Tae Kim & Soo Hyun Cho & Jing Jian Xiao, 2023. "Is Ignorance Bliss? Use of Alternative Financial Services, Financial Knowledge, and Financial Anxiety," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 956-967, December.
    8. Aswini Kumar Mishra & Vedant Bhardwaj, 2022. "The Determinants of Access to Informal Credits in India: An Application of Quantiles via Moments Method," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 1-22, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tania Burchardt & Julian Le Grand, 2002. "Constraint and Opportunity: Identifying Voluntary Non-Employment," CASE Papers case55, Centre for Analysis of Social Exclusion, LSE.
    2. Sommarat Chantarat & Christopher Barrett, 2012. "Social network capital, economic mobility and poverty traps," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 299-342, September.
    3. Bingqin Li & Huamin Peng, 2006. "The Social Protection of Rural Workers in the Construction Industry in Urban China," CASE Papers case113, Centre for Analysis of Social Exclusion, LSE.
    4. Hodgson, F. C. & Turner, J., 2003. "Participation not consumption: the need for new participatory practices to address transport and social exclusion," Transport Policy, Elsevier, vol. 10(4), pages 265-272, October.
    5. Li, Bingqin & Peng, Huamin, 2006. "The social protection of rural workers in the construction industry in urban China," LSE Research Online Documents on Economics 6226, London School of Economics and Political Science, LSE Library.
    6. Andrew Postlewaite & Dan Silverman, 2005. "Social isolation and inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(3), pages 243-262, December.
    7. Filgueira, Fernando & Furtado, Magdalena & Kaztman, Rubén, 2000. "New challenges for equity in Uruguay," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Rambotti, Simone, 2015. "Recalibrating the spirit level: An analysis of the interaction of income inequality and poverty and its effect on health," Social Science & Medicine, Elsevier, vol. 139(C), pages 123-131.
    9. Lacayo, Carlos, 2004. "Análisis Comparativo de Sistemas de Monitoreo y Evaluación: El Caso de Nicaragua," IDB Publications (Working Papers) 2205, Inter-American Development Bank.
    10. Caterina Ruggeri Laderchi & Ruhi Saith & Frances Stewart, 2003. "Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 243-274.
    11. Lilavati Krishnan, 2015. "Social Exclusion, Mental Health, Disadvantage and Injustice," Psychology and Developing Societies, , vol. 27(2), pages 155-173, September.
    12. Ruhi Saith, "undated". "Social Exclusion: the Concept and Application to Developing Countries," QEH Working Papers qehwps72, Queen Elizabeth House, University of Oxford.
    13. Tania Burchardt & Julian Le Grand, 2002. "Constraint and Opportunity: Identifying Voluntary Non-Employment," CASE Papers 055, Centre for Analysis of Social Exclusion, LSE.
    14. Medel-Ramírez, Carlos & Medel-López, Hilario, 2017. "Proposed methodology for estimating the index of social exclusion: the case of indigenous population in the State of Veracruz Mexico," MPRA Paper 86656, University Library of Munich, Germany, revised 12 Dec 2017.
    15. Claudiu-Ionuţ Popîrlan & Irina-Valentina Tudor & Constantin-Cristian Dinu & Gabriel Stoian & Cristina Popîrlan & Daniela Dănciulescu, 2021. "Hybrid Model for Unemployment Impact on Social Life," Mathematics, MDPI, vol. 9(18), pages 1-19, September.
    16. Janice Du Mont & S Daisy Kosa & Hannah Kia & Charmaine Spencer & Mark Yaffe & Sheila Macdonald, 2020. "Development and evaluation of a social inclusion framework for a comprehensive hospital-based elder abuse intervention," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-14, June.
    17. Asif Hussain & David Fisher & Stephen Espiner, 2017. "Transport Infrastructure and Social Inclusion: A Case Study of Tourism in the Region of Gilgit-Baltistan," Social Inclusion, Cogitatio Press, vol. 5(4), pages 196-208.
    18. Julian Le Grand & Liz Richardson, 2002. "Outsider and Insider Expertise: The response of residents of deprived neighbourhoods to an academic definition of social exclusion," CASE Papers case57, Centre for Analysis of Social Exclusion, LSE.
    19. Andrea Galeotti & Gerrit Müller, 2005. "Friendship Relations in the School Class and Adult Economic Attainment," Tinbergen Institute Discussion Papers 05-032/3, Tinbergen Institute, revised 08 Aug 2005.
    20. Beatriz Fernández-Olit & Juan Diego Paredes-Gázquez & Marta de la Cuesta-González, 2018. "Are Social and Financial Exclusion Two Sides of the Same Coin? An Analysis of the Financial Integration of Vulnerable People," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 245-268, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:139:y:2018:i:3:d:10.1007_s11205-017-1770-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.