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Factors Affecting Ownership of Financial Products in Colombia

In: Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean

Author

Listed:
  • Daisy Johana Pacheco

    (Banco de la República de Colombia)

  • Ana María Yaruro

    (Banco de la República de Colombia)

Abstract

This paper explores the variables determining why, despite being aware a financial product exists, individuals decide not to include them in their portfolio of products and services. The results for Colombia from the Financial Capabilities Survey in Andean Countries conducted by CAF-Development Bank of Latin America were employed to estimate the dependence between the level of awareness and ownership of financial products, and variables related to respondents’ sociodemographic characteristics, such as households’ financial skills. It also attempts to measure the level or strength of association between said variables. We use a two-factor contingency table methodology, complemented by loglinear regression models, following that proposed by Agresti (2007). The results show that not having a financial product, despite knowing it exists, is related to low levels of education, income, and not budgeting, among other factors.

Suggested Citation

  • Daisy Johana Pacheco & Ana María Yaruro, 2018. "Factors Affecting Ownership of Financial Products in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 6, pages 157-192, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    • Handle: RePEc:cml:incocp:7en-06
    Note: Joint Research Program of the Central Bank Researchers Network
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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