Microfoundations of Access to Finance: Demand-side Perspectives in South Africa
Lead Research Organisation:
University of Central Lancashire
Department Name: Lancashire Business School
Abstract
Abstracts are not currently available in GtR for all funded research. This is normally because the abstract was not required at the time of proposal submission, but may be because it included sensitive information such as personal details.
Publications
Annim S
(2014)
Banking the unbanked: the Mzansi intervention in South Africa
in Indian Growth and Development Review
Annim S
(2014)
Banking the unbanked: the Mzansi intervention in South Africa
in Indian Growth and Development Review
Arun T
(2015)
Financial inclusion: Policies and practices
in IIMB Management Review
Kostov P
(2014)
Financial Services to the Unbanked: the case of the Mzansi intervention in South Africa
in Contemporary Economics
Kostov P
(2011)
Determinants of Access to Finance: An Investigation into the Mzansi Intervention
in The European Journal of Development Research
Kostov, P
(2014)
Financial Services to the Unbanked: The Case of the Mzansi Intervention in South Africa
in Contemporary Economics
Kostov, Philip
(2013)
Usage of Financial Services in South Africa: Perceptions Matter
| Description | Widening financial participation is crucial in achieving longer term development objectives. Until recently, the analytical attentions have been largely focusing on the supply side constraints with an implicit assumption that the demand is there. This study focused on the demand side perspective and analysed the determinants of the effective demand for financial services in the context of South Africa. Following this, the study analysed the interactions and relationships between different channels for financial services provision in the country. Data from the FinScope study undertaken by the FinMark Trust over the period 2003 to 2011 was used to assess effects over time and across different individuals. This project employed a combination of novel model and variable selection methods in order to reveal the hidden structure of the demand for financial services. Demand will be initially characterized by specific channels, but also intend to analyse the interactions among these channels and the implications of these interaction for financial demand. |
| Exploitation Route | This project opens up preliminary steps in addressing the research gaps on the issue of demand side constraints on access to finance in emerging economies, which may be useful for further development of theory and policies. |
| Sectors | Communities and Social Services/Policy,Financial Services, and Management Consultancy,Other |
| Description | Widening financial participation is crucial in achieving longer term development objectives. Until recently, the analytical attentions have been largely focussing on the supply side constraints with an implicit assumption that the demand is there. This study focused on the demand side perspective and analysed the determinants of the effective demand for financial services in the context of South Africa. Following this, the study analysed the interactions and relationships between different channels for financial services provision in the country. Data from the FinScope study undertaken by the FinMark Trust over the period 2003 to 2011 was used to assess effects over time and across different individuals. This project employed a combination of novel model and variable selection methods in order to reveal the hidden structure of the demand for financial services. Demand will be initially characterized by specific channels, but also intend to analyse the interactions among these channels and the implications of these interaction for financial demand. |
| First Year Of Impact | 2011 |
| Sector | Financial Services, and Management Consultancy,Other |
| Impact Types | Societal,Economic,Policy & public services |
| Description | Extending the Learning Community: Rural Radio, Social Learning and Farm Productivity |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | The African Development Workshop was well reported in the local media,m and generated a keen interest among policy makers and public. The University of Stellenbosch has recognized the role of Professor Arun and team on this research, and to continue the further research in this direction, appointed Professor Arun as 'Professor Extraordinary' for two years from 2015. |
| Year(s) Of Engagement Activity | 2013 |
| Description | The Financial Landscape in South Africa: Policy, Structure and Dynamics |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | Yes |
| Geographic Reach | National |
| Primary Audience | Other academic audiences (collaborators, peers etc.) |
| Results and Impact | The development of the financial system is deemed as inadequate if it does not enhance access to lower income groups. Financial inclusion is therefore an important objective of a well-functioning financial system. This paper examines the financial sector landscape of South Africa in the post-apartheid era and discusses policies and development trends and also draws implications for financial access. The nature of competition in the South African banking industry appears to favour high profits, high fees and charges and not much widening of financial services to the low income earners. Indeed even in the event of the existence of relative cheaper products like the Mzansi account, there could be a behavioural lethargy towards emerging financial institutions due to the perceived high cost nature of financial services in South Africa. The emergence of microfinance banks, microinsurance and in the near future co-operative banks will help intensify bank competition and access to financial services at the lower end of the income segments. There was a good response to the ideas discussed by Professor Adjasi during the workshop. |
| Year(s) Of Engagement Activity | 2013 |