Knowledge and financial skills as the factors determining the financial exclusion process of rural dwellers in Poland

Abstract

Th e aim of the article is determining the level of knowledge and fi nancial skills of rural dwellers on an example of one of the European Union member states (Poland), as the factors which play a crucial role in the process of limiting the phenomenon of fi nancial exclusion. Th e main source of data used for the analysis was the information gathered through the author's own studies conducted on a group of 1000 randomly chosen people. Statistical analysis of the researched material comprised the summary statistical measurements, the non-parametric χ 2 test and the cluster analysis (k-means clustering). As results from the conducted analysis, the inhabitants of rural areas in Poland are characterized by the average level of knowledge and fi nancial skills. Th e level of fi nancial competences represented by rural dwellers is conditioned both by the economic and non-economic factors. Th ree groups of citizens were distinguished on the basis of the conducted investigations. Th e group which requires special educational measures comprises of women, elderly and less educated persons, households with lower incomes, families of annuitants and old-age pensioners, but also persons using fi nancial tools in a lower degree, not using banking services or living in the areas with a worse access to the banking infrastructure.

Are you really Financially Excluded if you Choose not to be Included? Insights from Social Exclusion, Resilience and Ecological Systems

“…Those most at risk of exclusion are unemployed, on low income, single parents, recipients of social assistance, young, old, and those with a low educational attainment or other vulnerable characteristics, such as disability. People with family and friends that are excluded are also at a higher risk of exclusion (Gomez-Barroso and Marban-Flores, 2013; Horska et al , 2013; Marron, 2013). People falling into these categories are more likely to be refused mainstream financial products due to negative account screening (e.g., overdrafts, and bounced cheques), and insufficient identification information, as well as poor credit history and low credit scores (Gomez-Barroso and Marban-Flores, 2013; Marron, 2013; Wentzel et al , 2013).…”

Financial inclusion in Colombia: A scoping literature review

“…Financial exclusion hinders social development (Amaeshi, Ezeoha, Adi & Nwafor, 2007;Buckland & Dong, 2008;Fuller & Mellor, 2008;Gómez-Barroso & Marban-Flores, 2013;Horska et al, 2013;Hudon, 2008;Leyshon et al, 2004;Myers et al, 2012;Solo, 2008).…”

“…Financial education is considered essential to achieving and creating financial inclusion. It is conceived as a tool through which individuals develop the values, knowledge, and skills needed to make responsible financial decisions requiring the application of basic financial concepts and understanding (Arora, 2012;Duncombe, 2012;Figart, 2013;Horska et al, 2013;Lusardi & Mitchell, 2014). Additionally, financial education is closely related to financial exclusion.…”

“…This relationship arises when inclusion policies create inclusion barriers that consequently generate financial exclusion (Beck & Demirguc-Kunt, 2008;Bernad et al, 2008;Datta, 2009;Demirguc-Kunt & Klapper, 2013;Fuller & Mellor, 2008;Horska et al, 2013;Rosengard & Prasetyantoko, 2011).…”

“…Individuals are excluded from banking services as a result of barriers in the system, and sometimes customers do not want to be part of the banking sector because it is costly and they prefer to remain excluded from it (Beck & Demirguc-Kunt, 2008;Datta, 2009;Fuller & Mellor, 2008;Horska et al, 2013;Solo, 2008). Similarly, analysis of the relationship between inclusion policies and financial exclusion revealed that, when costly inclusion policies are implemented, the higher costs are transferred to customers, limiting their access to financial services and collect money at low costs.…”