Consumer coping with financial exclusion: Evidence from Pakistan

Pakistan has a very high rate of financial exclusion which potentially compels financially excluded individuals to cope with their financial exclusion in different ways. This study which is a work in progress, seeks to explore... [ view full abstract ]

Pakistan has a very high rate of financial exclusion which potentially compels financially excluded individuals to cope with their financial exclusion in different ways. This study which is a work in progress, seeks to explore the coping strategies employed by low income financially excluded individuals. Qualitative data for this study has already been gathered and project is in data analysis phase. Significant understanding of data has been developed on the basis of interview completions and data transcription which help us to predict the expected results. This study will unfold that financially excluded individuals employ a variety of behavioral coping strategies for money transfers, managing savings and for acquiring short term loans. They use personal resources, market resources and social networks to cope with their financial exclusion. Personal resources and market options to cope with financial exclusion are expected to result in negative consequences very often. It is expected that utilization of social networks to cope with financial exclusion will generally result into positive consequences for financially excluded individuals. These findings are deepened and refined as the data analysis is completed.