Financial Services to the Unbanked: The Case of the Mzansi Intervention in South Africa
Contemporary Economics, Vol. 8, No. 2, pp. 191-206, 2014
16 Pages Posted: 10 Jul 2014
Date Written: June 30, 2014
The Mzansi intervention is a major initiative designed to provide banking services to the unbanked South African population. This study investigates the underlying variables that define the choice of a Mzansi account from a consumer perspective. Unlike previous studies, we do not assume that demand for financial services is a given but instead that it is underlain by perceptions and attitudes. Financial attitudes and perceptions are found to exert significant effects on financial choices. In particular, aspirations and forward-looking values are instrumental in facilitating access to finance.
Keywords: access to finance, variable selection, adaptive LASSO
JEL Classification: C52, D12, G29
Suggested Citation: Suggested Citation