Financial Vulnerability and Seeking Expert Advice: Evidence from a Survey Experiment
48 Pages Posted: 12 Apr 2021 Last revised: 5 Oct 2021
Date Written: April 10, 2021
The role of a bank advisor is especially important for guiding and counseling financially distressed individuals. Using a randomized controlled survey experiment conducted on a representative sample of French individuals and priming the financial vulnerability of half the respondents, we examine attitudes toward bank advisors. We find that priming deters low-income individuals from showing an extremely negative attitude toward seeking banking advice (positive effect); it also deters them from showing an extremely positive attitude (negative effect). We also find that acute financial distress partially drives the positive effect, and a lack of financial literacy partially drives the negative effect.
Keywords: Behavioral economics and finance, Poverty, Salience, Survey experiment, Priming, Banking services, Financial advisor.
JEL Classification: D14, D90, D91, C83, C9, G40
Suggested Citation: Suggested Citation