Unearthing Consumer Insights about Access to Financial Services in Pakistan

This paper attempts to understand peoples perceptions, attitude and behavior in their decisions regarding formal and informal financial services in Pakistan. The study gathered data through focus groups in urban and rural areas of Pakistan. It covered a range of topics including opinions about the head of the household (HHH), financial literacy and knowledge, concepts of money management, financial services and financial services providers, barriers in accessing financial services, and risk mitigation strategies. The study found no clear definition of the HHH. The HHH could be the main financial contributor, key decision maker or the eldest person in the household. Study findings include:

• Sources of financial knowledge and awareness included newspapers, television, banks, shop lenders, neighbors, relatives and the stock exchange;
• Money was thought of as a means of consumption and a tool for investment;
• Men were more aware of financial matters;
• Most participants managed money by planning with estimated risk;
• Religious as well as gender barriers impeded access to finance;
• Awareness and use of insurance was high in most groups;
• Financial institutions backed by the government were perceived as safer and more attractive.