Aboriginal Fringe Finance Use and Financial Capabilities: Survey Evidence from a Canadian City

Abstract

This exploratory research examines survey data collected in the Canadian city of Kamloops, British Columbia on banking habits and attitudes, socioeconomic characteristics, and financial capability levels of Aboriginal and non-Aboriginal fringe finance users. The theoretical framework supporting the analysis is grounded in institutional theories of financial exclusion contending that culture and history are relevant. The results suggest that Aboriginal fringe finance users have different characteristics, financial experiences and levels of financial capability than their non-Aboriginal counterparts. Aboriginal fringe finance users have lower levels of financial capability as assessed with an objective quiz. The results are expected to be relevant for policy makers attempting to reduce financial exclusion and increase well-being for Canada's Aboriginal population as well as for other countries with Aboriginal populations, such as Australia and New Zealand.

Examining payday loan utilization among households with mainstream credit access

“…The proportion of single parent payday loan clients doubled (8%-16%) from 2005 to 2016, while the proportion of female headed households who were payday loan clients fell slightly (42% to 40%). The gender results for this sample differ from some studies that report a larger proportion of payday loan users as female (Chen et al, 2022;Riley et al, 2022;Lamb, 2016Lamb, , 2015Bowles, 2011). It is important to note that the sample members in the current research are the family members most knowledgeable about the family's financial situation who are answering the survey questions for the entire household, which differs from many studies where the sample member is answering the survey or interview questions for themselves as individuals (Lamb, 2016(Lamb, , 2015.…”

“…The author extend his sincere gratitude to the anonymous reviewers for their invaluable feedback and constructive comments, which significantly improved this manuscript. population (Lamb, 2015;Bowles et al, 2011). This research focuses only on those with access to less costly short-term loans.…”

Can behavioral biases improve the financial capability of microfinance clients in the tribal states of India?

“…The number of dependents has been considered in the model as it can have a positive or negative effect on the level of FC of the household (Finney & Hayes, 2015; Kempson & Poppe, 2018). Education of the respondents and family members has determined the level of FC in other studies (Atkinson & Messy, 2012; Kempson & Poppe, 2018; Lamb, 2015; Taylor, 2011) as it can influence the financial knowledge and money management ability of the households. Therefore, the dummy variable of high‐school education of the respondent 3 (who is the financial decision maker of the household) has been considered in the model to see how his/her education influences the level of FC.…”

“…Sociodemographic variables : Ethnicity is an important sociodemographic factor that has been considered by other studies as a variable to determine the FC of the individuals or households (Finney, 2018; Finney & Hayes, 2015; Lamb, 2015). The study has covered both indigenous and nonindigenous households.…”

“…The literature points out that sociological factors, including sociodemographic, economic, life‐events, social, and cultural values, can influence the level of FC of the members of the household. Many studies witnessed that household's income, assets, family type, respondent's age and gender, education, and skills of the family members, number of earning members in the household, number of dependents in the household and number of unemployed members in the household, are prime determinants of financial behavior (ANZ, 2018b; Collin, 2011; Despard & Chowa, 2014; Finney, 2018; Finney & Hayes, 2015; Kempson & Poppe, 2018; Kumar, 2013; Lamb, 2015; Taylor, 2011). Also, life events such as birth, education, marriage, death, and festivals often drive the households to be more motivated and involved in financial affairs (van Raaij, 2016) and force them to adopt certain strategies like mental accounting methods to meet these specific expenses.…”