RT info:eu-repo/semantics/article
T1 Affective and cognitive factors that hinder the banking relationships of economically vulnerable consumers
A1 Cuesta González, Marta de la
A1 Fernández Olit, Beatriz Rosa
A1 Paredes Gázquez, Juan Diego
A1 Orenes-Casanova , Isabel
K1 Discourse analysis
K1 Behavioural finance
K1 Financial exclusion
K1 Vulnerable consumers
K1 Affective-cognitive factors
K1 Empresa
K1 Management science
AB Financial decisions are not rational and can be biased by affective and cognitivefactors. Behavioural finance has focused very little on analysing how consumerbiases influence relationships with banking institutions. Additionally, theserelationships are affected by the digitalization and transformation of bankingbusiness. Thus, in the case of economically vulnerable consumers, who are notprofitable for the increasingly competitive banking industry and lack financialabilities, their risk of financial exclusion is increasing.The aim of this paper is to explore the affective and cognitive factors thatcondition banking relationships for economically vulnerable consumers and howthese factors contribute to increasing financial difficulties and exclusion. Thisresearch, performed on a set of focus groups, bases its findings on a combinationof experimental and discourse analysis methods.The results show that distrust and shame lead to financial difficulties ineconomically vulnerable consumers. Distrust generates problems of access andself-exclusion, while shame generates difficulties of use. This lack of trust makesthem more rational when dealing with machines than with people, showinggreater banking difficulties for consumers with a “person-suspicious” profile. Thisfinding can help regulators establish limits on banking behaviour, require banksto incorporate affective and cognitive factors in their convenience tests and detectnew variables that can help them improve their insolvency ratios and reputations.
SN 0265-2323
YR 2022
FD 2022-05-03
LK http://hdl.handle.net/10017/51607
UL http://hdl.handle.net/10017/51607
LA eng
NO PurposeThe aim of this paper is to explore the affective and cognitive factors that condition banking relationships for economically vulnerable consumers and how these factors contribute to increasing financial difficulties and exclusion. This research, performed on a set of focus groups, bases its findings on a combination of experimental and discourse analysis methods. Design/methodology/approachFinancial decisions are not rational and can be biased by affective and cognitive factors. Behavioural finance has focused very little on analysing how consumer biases influence relationships with banking institutions. Additionally, these relationships are affected by the digitalization and transformation of banking business. Thus, in the case of economically vulnerable consumers, who are not profitable for the increasingly competitive banking industry and lack financial abilities, their risk of financial exclusion is increasing. FindingsThe results show that distrust and shame lead to financial difficulties in economically vulnerable consumers. Distrust generates problems of access and self-exclusion, while shame generates difficulties of use. This lack of trust makes them more rational when dealing with machines than with people, showing greater banking difficulties for consumers with a "person-suspicious" profile. Originality/valueThis finding can help regulators establish limits on banking behaviour, require banks to incorporate affective and cognitive factors in their convenience tests and detect new variables that can help them improve their insolvency ratios and reputations.
NO UCEIF Foundation
DS MINDS@UW
RD 26-abr-2024