UN-BANKING IN UNDER-DEVELOPING ECONOMY
Download| Volume 13 Issue 2 2017 | |
|---|---|
| Author(s): |
Babar Ansari
Kanwal Gul
Aamir Feroz Shamsi
Nawaz Ahmad
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| Abstract | This research is an attempt to examine the reasons behind un- banking in under developing economy, particularly in Pakistan. For this purpose, a qualitative approach called the summative content analysis approach is used 36 interviews with the banked and unbanked populace are incorporated. The study finds that lack of education, trust in bank/banker, volatile situation in city/country, accessibility/convenience, infrastructure, the interest rate in terms of religious exclusion and financial benefits, high cost associated with opening and maintaining an account, lack of the facility of online payment via debit card/ATM, lack of money, unemployment, government regulations, branch banking, convenience, and some other factors are the general reasons for un-banking in Pakistan. However, the study concludes that the main factors; convenience, cost and security is the major reason for un-banking in Pakistan. After concluding this research author suggested financial institutions should increase the number of access points/centers. Give more authorizations to financial centers, and Promote financial awareness. |
| Keywords | Summative Content Analysis,Unbanked, Security, poverty, financialinstitution, Cost. |
| Year | 2017 |
| Volume | 13 |
| Issue | 2 |
| Type | Full Length Paper |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | H41, L31, L21 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2017.13.02.07 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.2/7.pdf | Page | 72-93 | Reference | Asian Development Bank. (2014). Financial Inclusion in Asia. 2014 Asian Development Bank Institute. Barclays Economist Intelligence Unit-The Economist. (2010). Banking for Billions: Increasing Access to Financial Services. Beard, M. P. (2010). Reaching the unbanked and underbanked. Fedral Reserve Bank of St.Louis chaia. (2009). find a weak relationship between urbanization and financial access. Coupe, T. (2009). Trust in Banks. Diaz, J. N., Ledesma, J., Anjana, R., Singh, J., & Tyler, E. (2011). Saving for the Poor In the Philippines. The New American Foundation and MicroSave. Eric, P. (2016). How Can Banks Get Away With Charging Such High Fees. Retrieved from www.slate.com Gallop Survey. (2011). World Bank and Gallop Survey reports of 2011. Retrieved from http://fp.brecorder.com/2012/11/201211071256143 Hogarth, Jeanne, Chris Anguelov, C., & Lee, J. (2005). Why Don‘t Households Have a Checking Account. The Journal of Consumer Affairs. Hogarth, M. J., & O‘Donnel, K. H. (1999). Banking relationships of lower-income families and the governmental trend toward electronic payment. Fedral Reserve Bulletin, 85. InterMedia Pakistan FII. (2013). InterMedia Pakistan FII Tracker survey (N=6,000, 15+) November 2013-January 2014. Jacob, & Karlan, D. (2011). More Than Good Intentions. Jonat, R., Keats, A., Green, S., & Dupas, P. (2012, Sep). Challenges in Banking the Rural Poor:Evidence from Kenya‘s Western Province. Khatoon, A. (2012, Nov 7). Unbanked population. Kjosevski, J., & Petkovskia, M. (2013). Does banking sector development promote economic growth? An empirical analysis for selected countries in Central and South Eastern Europe. Economic Research-Ekonomska Istraživanja, . Klapper, L., & Demirgüç-Kunt, A. (2013). Financial Inclusion in Africa: An Overview. African Development Bank. Klapper, L. (2014, May 2). Why are 75% of the World's Poor Unbanked. Retrieved from http://live.worldbank.org: http://live.worldbank.org/qa-why-are-75-worlds-poorunbanked Leora . (2014). Measuring Financial inclusion (Global Findex). Love, I., & Bruhn, M. (2009). The Economic Impact Of Banking The Unbanked: Evidence From Mexico. Policy Research Working Papers. Lusardi, A. (2005). Financial Education and the Saving Behavior of African-American and Hispanic Households. Maeshall. (2004). Financial institutions in disadvantaged areas: a comparative analysis of policies encouraging financial inclusion in Britain and the United States. Environment and Planning. Micheal, S., & Barr. (2002). Banking for the Unbanked. Law Quad.Notes 45,. NL, K., NS, W., & DR, A. (2002). Content analysis: review of methods and their applications in nutrition education. OECD. (2011). OECD library. Osaki, Y., & Burhouse, S. (2011). 2011 FDIC National survey of Unbanked and Underbanked Households. FDIC. Pasha, M. (2016). What Will It Take for Pakistan to Achieve Financial Inclusion? The World Bank. Potter, & Levine-Donnerstein, D. (1999). Rethinking validity and reliability in content analysis. Journal of Applied Communication research. Rehman, A. H. (2007). Bank interest and Muslim society. Islamic Research Foundation International, Inc. Shiekh, A. (2016, Sep). Will Banks Pull it Off. Baking on Digital Inclusion. Soleda, M., Demirguc-Kunt , A., & Beck, T. (2007). Banking Services for Everyone? Barriers to Bank Access and Use Around the World. JEL Classification. The world bank. (2012, april 19). Three Quarters of The World’s Poor Are “Unbanked”. Retrieved from http://www.worldbank.org/en/news/feature/2012/04/19/three-quartersof-the-worlds-poor-are-unbanked |