The relationship between vulnerable financial consumers and banking institutions. A qualitative study in Spain

• Published in: Geoforum Vol. 119; pp. 163 - 176
• Main Authors: de la Cuesta-González, Marta, Paredes-Gazquez, Juandiego, Ruza, Cristina, Fernández-Olit, Beatriz
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.02.2021; Elsevier Science Ltd
• Subjects: Banking; Consumers; Data analysis; Discourse analysis; Discrimination; Ecology; Financial capability; Financial ecology; Financial exclusion; Financial institutions; Financial services; Financialization; Neighborhoods; Pattern recognition; Perception; Policy making; Poverty; Qualitative analysis; Qualitative research; Social exclusion; Software; Urban poverty; Vulnerability; Vulnerable consumer; Poverty; Vulnerable consumer; Financial capability; Financialization; Discourse analysis; Financial exclusion; Financial ecology
• ISSN: 0016-7185; 1872-9398
• DOI: 10.1016/j.geoforum.2021.01.006

•Financial inclusion is the sustainable provision of financial services.•Financial exclusion can be conceived as financial discrimination.•We find a complex intra-urban ‘financial ecology’ of low-income consumers.•Use difficulties are the main difficulties that vulnerable financial consumers face. The financial exclusion phenomenon has been approached from different perspectives. After reviewing the recent literature, we adopt a financial ecology approach and propose a comprehensive framework to analyse the different types of difficulties (access, use and perception) that vulnerable financial consumers face in relationships with banking institutions as well as their underlying causes. We consider financial inclusion as the sustainable provision of financial services and products and an adjustment to individual needs. We examine a special group of urban vulnerable consumers: underbanked people facing poverty and social exclusion. Data were obtained from focus groups and were coded and analysed using qualitative data analysis software. The results show that use difficulties predominate, followed by perception difficulties. Bank pressure and lack of financial training stood out among the main causes of these financial difficulties. We conclude that poorer neighbourhoods constitute a distinctive financial ecology produced by the ‘discrimination’ of a significant number of their inhabitants in the use of mainstream financial services. The study provides evidence of the socio-spatial nature of the exclusion process and calls for further research on the role of policy responses to restrict abusive practices.