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Dissatisfaction theory of financial inclusion

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  • Ozili, Peterson K

Abstract

In explaining the cause of financial exclusion, dissatisfaction with the formal financial system stands out as a possible cause of financial exclusion according to the dissatisfaction theory of financial inclusion. This paper revisits the dissatisfaction theory of financial inclusion and extends the theory by providing an elaborate discussion of (i) the relationship between customer dissatisfaction and financial inclusion using a grid, (ii) the sources of customer dissatisfaction and (iii) ways to deal with customer dissatisfaction. The theory argues that previously banked adults who left the formal financial system and have become unbanked again can be brought back to the formal financial sector through persuasion if the element of dissatisfaction has been removed or resolved. The theory is significant because it explains one of the major reasons why people leave the formal financial system despite the availability of formal financial services and ease of access to financial services in the financial system.

Suggested Citation

  • Ozili, Peterson K, 2024. "Dissatisfaction theory of financial inclusion," MPRA Paper 123294, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123294
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    File URL: https://mpra.ub.uni-muenchen.de/123294/1/MPRA_paper_123294.pdf
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    References listed on IDEAS

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    4. 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.
    5. Patrick Opoku Asuming & Lotus Gyamfuah Osei-Agyei & Jabir Ibrahim Mohammed, 2019. "Financial Inclusion in Sub-Saharan Africa: Recent Trends and Determinants," Journal of African Business, Taylor & Francis Journals, vol. 20(1), pages 112-134, January.
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    More about this item

    Keywords

    financial services; access to finance; financial inclusion; dissatisfaction; digital financial inclusion;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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