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Can behavioral biases improve the financial capability of microfinance clients in the tribal states of India?
Author(s) -
Chidambaranathan Mani,
Guha Samapti
Publication year - 2020
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2367
Subject(s) - microfinance , socialization , socioeconomic status , social capital , business , finance , economic growth , economics , psychology , sociology , social psychology , social science , population , demography
Financial capability (FC) of the households involved in microfinance (MF) activities is better than those who are not. MF model, especially the traditional informal group structure, provides a platform for financial socialization and hence, it enables to build the FC of its members. Socioeconomic factors and behavioral economic variables significantly influence the level of FC of the households involved in MF activities. While designing FC enhancement programs, one should consider social capital structures and behavioral economic aspects.