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Utilization of Alternative Financial Services and the Role of Financial Capability

Swarn Chatterjee & Yunhee Chang

Journal of Consumer Affairs2025https://doi.org/10.1111/joca.12614article
AJG 1ABDC A
Weight
0.48

Abstract

This paper examines the factors associated with access to and frequency of use of alternative financial services (AFS) using a composite dataset comprising of geographic locations of AFS establishments and state payday policies merged with the geo‐coded 2018 and 2021 pooled waves of the FINRA National Financial Capability Study. The results provide mixed evidence of the association between the density of AFS providers in an area and the use of AFS. Objective financial knowledge was negatively associated with both the likelihood and frequency of AFS use. Perceived Money Management Ability (PMMA) was also negatively associated with the use of AFS but not with the frequency of AFS use. Controlling for financial access and capability variables, Black consumers and low‐income consumers were more likely to use AFS. The implications for policymakers, scholars, and researchers are discussed.

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https://doi.org/https://doi.org/10.1111/joca.12614

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@article{swarn2025,
  title        = {{Utilization of Alternative Financial Services and the Role of Financial Capability}},
  author       = {Swarn Chatterjee & Yunhee Chang},
  journal      = {Journal of Consumer Affairs},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/joca.12614},
}

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Evidence weight

0.48

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.41 × 0.4 = 0.16
M · momentum0.63 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.