Banking patronage motives of the urban informal poor

Purpose – The purpose of this paper is to provide an understanding of the banking needs of urban informal poor consumers in South Africa. These consumers find it difficult to obtain access to banking products.Design/methodology/approach – A survey of consumers was undertaken in a large informal settlement outside Johannesburg. A qualitative exploratory pilot study was undertaken first to gain a better understanding of these consumers and to develop a research instrument. Second, a quantitative analysis was undertaken among 200 households.Findings – Banking products used by the sample are discussed as well as all their patronage motives. It was established that the majority of consumers did have a bank account and there was a significant association between having an account and various demographics such as income level, employment status and level of education.Research limitations/implications – Each informal settlement may have unique characteristics and therefore it may be difficult to generalize the fi...