Financial vulnerability and seeking expert advice: Evidence from a survey experiment

Delis, Manthos and Galariotis, Emilios and Monne, Jerome (2021): Financial vulnerability and seeking expert advice: Evidence from a survey experiment.

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Behavioral economics and finance; Poverty; Salience; Survey experiment; Priming; Banking services; Financial advisor.
• Subjects: C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C83 - Survey Methods ; Sampling Methods; C - Mathematical and Quantitative Methods > C9 - Design of Experiments; D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance; D - Microeconomics > D9 - Intertemporal Choice > D90 - General; D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; G - Financial Economics > G2 - Financial Institutions and Services

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