9147 193 27249 1 10 20230720

Philippine Management Review 2023, Vol. 30, 15-38.
Effects of Filipino Consumers’ Financial Attitudes, Subjective

Norms, and Perceived Behavioral Control on Intentions to Formal
Banking: Towards Financial Inclusion
Manuelito Co and Dave D.G. Centeno *
University of the Philippines, Cesar E.A. Virata School of Business, Diliman, Quezon City 1101, Philippines
This study analyzes the role of attitudes, subjective norms, and perceived behavioral control
on the behavioral intentions of Filipinos in saving surplus money in the bank. Anchoring on the
theory of planned behavior, a logistic model involving this financial behavioral intention and
psychological variables extracted from the Philippine Central Bank’s Consumer Finance Survey
was developed. The survey generated data through a stratified random sampling of households
asking their financial conditions including income, spending and insurance coverage. Findings
illustrate that subjective norms and perceived behavioral control significantly predict
behavioral intention towards banking. Moreover, demographic differences are also described
to influence behavioral intentions. Implications and contributions are positioned in the
contextualization of psychological factors in consumer finance domain and consequently
towards financial inclusion marketing strategies.
Keywords: attitudes and behavioral intentions, consumer finance survey, marketing, behavioral
finance
1 Introduction
Improving financial inclusion has been the major mandate of the Bangko Sentral ng Pilipinas (BSP).
In this mandate, the BSP aims to achieve a state wherein the access to financial services such as in
banking becomes effective especially for the vulnerable sectors. To do this, BSP continuously improves
the design and quality of the formal financial offerings to address the varying needs of individuals
wanting to conduct business with financial institutions.
This research explores on an alternative explanation of financial exclusion among individuals in the
Philippines. This research uses a behavioral lens on linking attitudes, subjective norms, and perceived
behavioral control on financial behaviors among Filipinos specifically in the formal banking domain.
Past research has shown several explanations and mechanisms to explain low financial market
participation in the country (e.g., Fernandes, et al., 2014; Ferrer, 2017; Razafimahasolo et al., 2016;
Tan, 1991).
However, research set in the local context has been scarce in the attitudinal level to explain financial
exclusion in the lens of attitudinal tendencies (Lucas, 2018). Thus, this paper aims to quantitatively
link towards financial behaviors the following factors: (1) Filipinos’ attitudes towards banking and
investing, (2) their perceived behavioral control over banking and investing, and (3) the social
influence emanating from subjective norms potentially coming from immediate family members at
home.
The intended contributions of this paper are as follows. Firstly, beyond the observable reasons for
financial exclusion such as cost and lack of funds, this research postulates that financial exclusion can
be caused by attitudes, behavioral control (i.e., one’s assessment of ability), and social influences from
one’s subjective norms. These factors have not been described in the formal reports and research done
in the local context as barriers to financial inclusion initiatives. Apart from the issues relating
education, access, infrastructure in the supply side, the grand concept of financial inclusion also
requires scrutiny of individuals’ psychological factors in the demand side (Debunque-Gonzales &
Corpus, 2021). The common indicators included in several analyses on this side merely include
demographic variables such as income, education, age, and gender. The intervention strategies of
policymakers and private entities should also understand patterns of attitudes and behaviors among
target populations. For example, as Rahman, et al. (2021) interpreted, poverty-stricken individuals
might be anchoring their decisions on psychological factors such as emotionality. These seemingly
* Correspondence: [email protected]; [email protected]

16 Effects of Filipino Consumers’ Financial Attitudes, Subjective Norms, and Perceived Behavioral Control on Intentions to
Formal Banking: Towards Financial Inclusion
small emotional factors might be hindering more rational financial decisions (Mullainathan & Shafir,
2009). Finally, the World Bank (2015) stresses that such financial decisions and participations are
highly influenced by attitude and behavioral patterns. Mindra, et al. (2017) strongly connect such
behavioral traits to financial inclusion such as self-efficacy. For formal financial services to be more
enticing, encouraging, and participative, individuals’ attitudes, subjective norms and social influences,
and perceived behavioral control must be put to the equation when aiming for financial inclusion. The
theoretical underpinnings on financial behaviors wherein a basic proposition is that attitudes towards
financial behaviors precede intentions, and then actual behaviors are demonstrated in this empirical
research. More importantly, the role of behavioral control (i.e., one’s perceived ability to perform a
behavior) is highlighted in this research as a major driver of financial behaviors. Third, practical utility
of the findings in the paper could aid the micro-financial domain of the industry (e.g., personal banks
and investment companies) in capturing market interest and understand consumer behaviors in the
said category. Finally, academic and pragmatic knowledge coming from the richness of the Consumer
Finance Survey of the BSP can be produced and disseminated through employing systematic, basic,
and empirical research. The study of attitudes and its implications on consumer behavior is important
to various stakeholders, especially those with immediate decision-making powers and/or those who
interact directly with customers. Because of the potential benefits the understanding of how attitude
translates into actual behavior that may be favorable or unfavorable to the financial institution in
question, the study of attitude-behavior is worth examining.
This paper aims to answer the following research questions: (1) How do behavioral attitudes,
subjective norms, and behavioral control beliefs affect both intentions and actual behaviors of Filipino
consumers’ behaviors towards financial services? (2) How do these intentions and actual behavior
towards financial services differ among Filipino demographic segments?
The second question elaborates the attitudes, intentions, and behavioral manifestations on
financial services based on some existing knowledge of attributable mechanisms among Filipinos’
demographic differences. By empirically illustrating potential differences, implications can be realized
with both theoretical development on attitude–behavior link and practical actions by agencies to
encourage financial behaviors.
The Theory of Planned Behavior paves the way to conceptually illustrate the relationship and
causality of attitudes, social norms, and perceived behavioral control towards behavioral intentions.
Although the TPB explicates that these factors lead to behavioral intent, and does not strictly connect
intentions to actual behaviors, theorists of TPB have argued that behavioral intention are
approximations of actual behaviors (e.g., Eifler & Petzold, 2019). However, in this paper, the model
explicitly tests the TPB factors linked to behavioral intentions, not to actual behaviors.
The intended contribution of this current research is to investigate generalized consumer attitudes,
social influences, and perceived behavioral control in the context of banking. In addition, such
generalized scanning of behavioral finance in the current Asian market (i.e., The Philippines) could
represent well the entire society as the dataset utilized was a nationwide national survey conducted
by the government similar to the quality of Western dataset by Rutherford and Devaney (2009) in
credit card behaviors among Americans.
2 Review of Related Literature
2.1 Financial Inclusion Status in the Philippines

The Bangko Sentral ng Pilipinas emphasizes the importance of financial inclusion as it “lays the
groundwork for sustainable and equitable national development” BSP, 2023, par.2). As financial
inclusion achieves a state of effective access, appropriately designed, good quality, and responsive
financial products and services (e.g., savings among others) especially with the vulnerable sectors, it
also faces layers of consumer domains that need to be understood.
In 2021, BSP reports that ownership of bank accounts improved to 23% from a mere 12% in 2019
(BSP, 2021). However, the savings use of bank accounts decreased from 76% in 2019 to only 56% in
2021. On the other hand, the acceleration of digital finance adoption during the COVID-19 pandemic
helped improve financial inclusion. But still, the number of unbanked Filipinos in 2021 remains at
Manuelito Co and Dave D.G. Centeno 17
around 53% of the country’s adult population, or roughly around 41 million on that year (Hilario,
2022).
The BSP’s Consumer Financial Survey (CFS) that started in 2009 is a nationwide quadrennial
survey on consumer finances among Filipino households (BSP, 2014). The 2014 version of the CFS
involved approximately 15,000 households covering all regions in the country (except Leyte and the
Autonomous Region of Muslim Mindanao (ARMM)). The survey generates data on household level
financial conditions and individual-level financial attitudes. This 2014 edition added items on
Filipinos’ attitudes towards saving in banks and investments, which notably were not present in the
2009 edition.
To highlight some relevant findings, 2014 CFS reported that only 14 percent of Filipino households
had a deposit account. This means that two in every five Filipinos had used deposit accounts in the
Philippine banking system. However, those with financial assets such as investments in stocks, mutual
funds, government securities, and fixed-income securities are still small. In the National Capital Region
alone, only 0.4 percent of households had held investments in these types of assets while only 0.2
percent for the entire country (BSP, 2014). Since its inception in 2009, there had been a dearth of
academic research that could tap into the richness of the data that the BSP-CFS contains. This research
extracts the attitudinal–behavioral aspects of the instruments in the aim of explaining micro-
personality levels of behavioral finance through the lens of a behavioral theory studies—i.e., Theory of
Planned Behavior.
Meanwhile, while the BSP aims to increase the numbers year-on-year, barriers against financial
inclusion still thrive such as cost of financial services, and lack of excess money to be set aside for
savings (BSP, 2018). The potential reasons according to the BSP include: not having enough money, no
documentary requirements, unaware of the details about this or how it works, and not needed. Not
many reports have explicated the attitudinal aspects of financial exclusion at least in the formal
banking behaviors.
2.2 Theory of Planned Behavior

Ajzen and Fishbein (1980) originally asserted in the theory of reasoned action that human
behaviors are influenced by attitudes and social norms. According to the theory, behavioral intention
is influenced by the individual’s attitude toward the behavior and the social norms surrounding the
behavior. By evaluating the individual’s attitude toward the behavior and the social norms
surrounding the behavior, marketers and psychologists can gain insight if an individual is likely to
perform the intended behavior. For example, if the individual has a positive attitude about securely
saving money and society views securely saving money as a positive thing, then it is likely that the
individual deposits money in banks to a secure saving behavior.
Given the potential precursors to consumer decisions to avail of financial services, a multi-
theoretical view of consumer financial behavior is needed to explain the behavior (Ning et al., 2015).
Behavioral finance as a modern area in the study of finance leans to combine behavioral and cognitive
psychological mechanisms to explain individual behaviors. These mechanisms and behaviors are
assumed to not reflect the conventions of economic fundamentals in the rational models (Kumar,
2017).
This paved the way towards developing a framework to model consumer financial behavior
(Jungermann, 2004). The theory of planned behavior (TPB) states that the individuals’ actual behavior
is explained by their attitudes toward the behavior, subjective norm, and perceived behavioral control
(Ajzen, 1991; Xiao et al., 2011). In addition, the theory of reasoned action (TRA) proposes that
reasoned actions are based on information acquisition and processing, deliberation, and well-
informed decisions (Ajzen & Fishbein, 1980). Therefore, both theories assert that in decisions that
require cognitive involvement, such as financial decisions, attitudes become an important antecedent
to behaviors.
Meanwhile, consumer financial socialization is a process by which individuals learn the system,
values, norms, and required behavior of a group where they belong to that influence their financial
attitude and behavior (Danes, 1994; Ozmete, 2009). One of the mechanisms through which consumer
financial socialization is formed through social interaction. For example, Van Raaij (2016) explains that
investing behaviors of individuals tend “to imitate and follow other investors due to lack of relevant
and reliable information and lack of courage to behave differently” (p.89). There is broad research on
how social interactions with several circles of groups affect the attitude and behavior of individuals.
Social learning happens when behaviors are shaped by observing and imitating others (Bandura,
1971). Parents, for example, shape and guide the financial attitudes and behaviors of their child
through communication and using negative and positive reinforcements (Bakir et al, 2006). That being
said, these individuals would therefore develop some desire to belong to that group, or at the very least
imitate those who are influencing them. In the context of this research, it can therefore be simply said
that if those some parents, for example, possess some degree of knowledge and experience in financial
products and services, then they themselves would be more interested to avail these products and
services as well.
The theory of planned behavior states that attitude toward the focal behavior, subjective norms,
and perceived behavioral control shape an individual’s intention and behavior to the said behavior.
Ajzen suggested the theory in 1991 as an improvement of the theory of reasoned action previously
developed by Ajzen and Fishbein in 1980. Ajzen added perceived behavioral control as one of the
determinants of intention and behavior with attitude toward the behavior and subjective norms.
Therefore, as seen in the financial behavior context, three primary factors can influence both
intention and actual behaviors among individuals: attitudes towards financial services, social norms
and influences around the individual on financial behaviors, and perceived behavioral control on
saving and investing (e.g., ability to increase personal wealth). Moreover, the study further investigates
the variances on intention and actual behaviors towards financial services that can be attributed to the
perceived behavioral beliefs among demographic segments in the market. For example, an individual’s
financial resources, age, societal gender role, and level of educational attainment could improve the
prediction of intention and actual behaviors by considering limiting factors affecting the individual’s
ability to perform the behavior (Sahni, 1995). An individual’s ability to perform a behavior is limited
by his maturity, level of knowledge, experience, financial resources, and societal gender roles. (Serido
et al, 2013). According to Ajzen, by considering the individual’s perceived behavioral control, the
theory of planned behavior increases the descriptive power of the model to determine financial
behaviors. Figure 1 illustrates the conceptual framework (See Figure 1. Conceptual Framework using
the Theory of Planned Behavior).
Figure 1. Conceptual Framework using the Theory of Planned Behavior
This paper explores on these primary variables—attitudes towards the behavior, subjective norms,
and behavioral control over financial behaviors among Filipinos. In addition, demographic features
that marginally contribute to the prediction of intention and behavior are also investigated.
This paper aims to contribute to the growing literature that anchors onto the theory of planned
behavior where the results of this paper are highly contextualized in behavioral finance. Recent
research has utilized said theory in the financial context of consumer marketing such as those of
Aboelmaged and Gebba (2013) in their study on mobile banking adoption, Yousafzai, Foxall, and
Pallister (2010) in internet banking behavior, Gopi and Ramayah (2007) on online stock trading,
Rutherford and DeVaney (2009), and Xiao et al. (2011) on credit card use. More recently, Effendi, et al.
(2021) applied the theory to predict consumers’ decisions in using Islamic rural banking services.
Meanwhile, Raut, Kumar, and Das (2021) studied the predictability and reasons of individual investors’
intention to subscribe to socially responsible investments in the Indian market using the TPB model.
Similarly, Nomi and Sabbir (2020) investigated the factors of consumers’ purchase intention towards
life insurance in Bangladesh through the lens of TPB.
To further establish that TPB models are most appropriate anchors in recent literature, Mahardika
and Zakiyah (2020) analyzed the interest of millennial consumers in Indonesia with their intention to
invest in stocks; as well as Putri and Adawiyah’s (2020) main framework of TPB in analyzing the effect
of behavioral finance towards investment intentions. Summing it up, Antony (2020) acknowledges
that the TPB models are appropriate tools in the domain of behavioral finance when financial decisions
are "guided and affected by psychological, emotional, and behavioral factors” (p. 5).
2.3 Role of Attitude on Financial Behavior

Campbell (1963) first argued that social attitudes are a hypothetical construct that is assumed to
be shaped by historical experiences that can influence subsequent behavior. The study adopts Ajzen
and Fishbein’s (2000) definition of attitude as “the evaluation of a behavior, concept or object along
the dimension of good or bad, favor or disfavor, like or dislike” (Ajzen & Fishbein, 2000).
Glasman and Albarracin (2006) conducted a meta-analysis of different studies in the formation of
attitudes that could predict subsequent behavior. Their study revealed that easily accessible and
consistent attitudes tend to predict subsequent human behavior. Also, attitudes that are gained from
past experiences tend to predict subsequent human behavior.
Several foreign studies have explored on the role of attitudes towards financial behavior. For
example, Borden, Lee, and Collins (2008) considered American college students’ financial knowledge,
attitudes, and behavior through seminar participation and loaning behaviors. Also, Chien and Devaney
(2001) investigated the effects of credit attitude on credit card and installment debt while Parrotta and
Johnson (1998) explored the financial attitudes and knowledge and their effects to financial
satisfaction among Canadian married individuals. These examples consistently illustrate the way
consumers develop their financial attitudes towards financial behaviors and how do these ultimately
affect their personal financial management.
In Asian contexts, Ahmed and colleagues (2010) described Malaysians’ individualized attitudes
towards financial behavior directly affect credit card spending. Moreover, anxiety towards money
could affect risk-taking behaviors among Taiwanese (Shih & Ke, 2014). Attitudes towards financial
behavior are also mediated by financial literacy in Malaysia and other Asian markets (Jamal et al., 2015;
Xiao, 2020). Attitudes towards money and investments can also be construed as a gendered behavior
(e.g., in Pakistan) according to Bhabha and colleagues (2014).
Therefore, based on these plethora of theoretical arguments and highlights of past research, we
predict that positive attitudes toward financial services behavior (i.e., availing a bank deposit account
and investing in stocks, bonds, mutual funds and UITFs) positively affect the likelihood that the
individual intends to avail of these financial services. Also, it is deemed that positive attitudes toward
financial services behavior (i.e., availing a bank deposit account and investing in stocks, bonds, mutual
funds and UITFs) positively affect the likelihood that the individual avails of these financial services.
Thus, with these considerations, the first hypothesis is stated as:
H1: Individuals who have positive attitudes towards banking will have increased intention to avail
of formal banking services.
2.4 Role of Social Influence and Subjective Norms on Financial Behavior

There is broad research on how the influence of family members, friends and peers shape the
attitude and behavior of individuals (e.g., Gudmunson & Danes, 2011; Kasser et al., 1995; Schroder &
McKinnon, 2007; Webley & Nyhus, 2006). Therefore, it is to be expected that such individuals can exert
similar influences towards attitudes and behaviors on this context on behavioral finance. As
mentioned, consumer financial socialization enables individuals to learn the system, values, norms and
required behavior of a group where they belong to that which in turn influences their financial attitude
and behavior (Danes, 1994; Ozmete, 2009). One of the mechanisms through which consumer financial
socialization is formed includes social interactions that in turn lead to social learning (Bandura, 1971).
Socialization starts in the family as the initial reference point for the individual. Parents and other
family members shape and guide the financial attitudes and behaviors of a child through
communication and using negative and positive reinforcements, such as a head of the family who has
stocks and bonds being able to influence his or her children to do the same (Bakir et al., 2006). Peer
interaction in the workplace can also exert similar influences towards financial behavior, like
colleagues discussing about important life decisions, including financial decision-making such as
investments (Bursztyn, 2014) and availing deposit services (Tan & Chua, 1986), among others. To
show belongingness and camaraderie to the group, individuals subscribe to the same attitudes and
behaviors manifested within the group.
In view of family and workplace social influences, propinquity effect and mere exposure state that
the mere presence and exposure to family members’ and workplace colleagues’ behavior has a direct
influence on intention and actual behavior (Zajonc, 1968). In Malaysia, for example, Sharif and Naghavi
(2020) investigated consumers and the significant indirect role of parents’ teaching and behavior
towards financial and risk-taking behaviors, while Jamal and colleagues (2015) enumerate social
environment as a part of savings behavior among Malaysians. Similarly, Widyastuti and colleagues
(2016) found out that attitude and subjective norm significantly influenced saving intentions among
young people. Also, in Iran, Ghalandari (2012) includes social influence as a factor to positively affect
user’s behavior and intention to use e-banking.
The channels of social interaction have also been employed in behavioral finance research. Hong
and colleagues (2014) enumerate two mechanisms through which social interaction can entice
individuals to avail of financial services. First, information can be disseminated by means of word-of-
mouth communication or observational learning (Banerjee, 1992; Bikhchandani et al., 1992; Ellison &
Fudenberg, 1995). Second, individuals may also enjoy discussing the choice of financial services among
the social group. Thus, it is more likely for an individual to avail of financial services, say invest in
stocks, if the participation is high among an individual’s social circles. Likewise, social interaction can
also favorably influence financial decision-making in an effort to belong. Being aware of the financial
decisions within a given society pressures the individual to follow and maintain the level of activity
within the group. Bernheim (1994) presents a model of social conformity, where individuals adapt to
a uniform standard of behavior. They believe that even slight departures of their actions with the social
norm will diminish their status.
The study therefore looks at the presence of a household member that has financial assets and a
household member working in the financial services industry as mechanisms for social learning theory
within households. These household members possess enough knowledge to make more solid
arguments to influence individuals to develop favorable attitudes and behaviors towards financial
products and services. Likewise, this research also looked at being employed in the financial services
industry as a mechanism where individuals are influenced by peers and colleagues in the workplace
for the same reasons as that of household members. Thus, social influences from subjective norms,
represented by the presence of a household member availing financial services (i.e., availing a bank
deposit account) and employment in the financial services industry, positively affects the likelihood
that the individual intends to avail of the same financial services.
Thus, the next hypothesis on the effect of social norms states that:
H2: Individuals who are affiliated with someone who has formal bank accounts will have increased
intention to avail of formal banking services.
2.5 Perceived Behavioral Control in Financial Behaviors

Behavioral control is a perception of one’s ability (ease or difficulty) in doing the focal behavior,
which is contextual and can vary from person to person, from situation to situation. The theory of
planned behavior is particularly highlighting the role of behavioral control as it critically recognizes
an individual’s self-efficacy in performing behaviors of interest (Ajzen, 1991). According to the
proponents of TPB, the act of non-willingness but is constrained by the perceived ability should predict
intentions and behaviors of individuals.
Perceived behavioral control could be semiotically connected to direct and indirect experiences
towards an attitude object (e.g., saving towards banking) thus creating a ‘dispositional control’
(Manstead, 2001). Azjen (2002) himself clarified about the concept of perceived behavioral control.
This factor, which he added in the domain of cognitive control in the behavioral structure of an
individual, deals with the perceived lack of volitional control over a locus of action. The lack of control
even on the antecedent behavioral actions form part the series of perceived behavioral control. For
example, if one says he/she cannot save money, thus, he/she cannot put anything on a bank to save, is
a statement about controllability over the focal behavior. In this case, intention to use a bank.
Related studies have explored self-control and self-efficacy in financial behaviors. For example,
Rha, Montalto, and Hanna (2006) connected varying self-control levels depending upon the life cycle
of an individual. Also, behaviors of low-saving households are attributed to bounded rationality and
self-control (Thaler & Benartzi, 2004). Through these foundations, thus, in the context of financial
behaviors, it is predicted that perceived behavioral control towards saving behavior affects intentions
and actual behavior (i.e., ownership of bank accounts and investment instruments) among Filipinos.
H3: Individuals who express negative perceived behavioral control over saving money will have
lesser intention to avail of formal banking services.
2.6 Demographic Differences in Financial Behaviors

Expressed intentions towards availing of bank services could vary depending upon one’s personal
demographic profile. Such differences inform theoretical contingencies of behavioral intentions
themselves based on the conceptual lining of resources, skills, and maturity in a domain (i.e., financial
domain) (Serido et al, 2013). In this study, we explore the role of educational attainment, gender,
income, employment, age, membership in pension, and household size as set of demographic
determinants of financial behaviors.
2.6.1 Educational Attainment

The educational attainment of an individual can show the level of numeracy and understanding of
economic concepts needed to comprehend risk and return concepts in availing financial services
(Atkinson & Messy, 2012). Atkinson and Messy (2012) show that there is an association between
higher educational attainment and higher financial literacy scores in the 14 countries included in their
study. They suggest that higher levels of educational attainment impact not just knowledge but also to
higher levels of financial literacy. Education can change individuals’ behavior and decision making in
several ways: through increasing financial literacy and cognitive skills, or by affecting social networks,
job opportunities and beliefs and attitudes (Cole & Shastry, 2009). Grimes et al. (2010) find that
individuals who have graduated from high school reduces the probability that an adult is unbanked in
the United States compared to those who have not graduated from high school.
In the Philippines, as the level of education increases, the level of understanding of required to pass
mathematics and economics subjects increase. A high school graduate will understand algebra,
trigonometry, geometry and economics which are not yet learned by only an elementary school
graduate. Similarly, college graduates have undertaken high-order thinking skills that are needed to
evaluate whether to avail financial services.
Studies have correlated formal education attainment with banking behaviors. Loaba (2022)
suggests that in West Africa, formal education significantly affect formal saving behaviors among
individuals. Also in the United States, Kaynak and Harcar’s research (2005) shows that American
consumers’ attitudes towards banks are affected by their educational segmentation: highly educated
individuals tend to trust banks more. Finally, Andreou and Anyfantaki (2021) found a correlation
between formal education and financial literacy affecting banking behaviors.
Therefore, it is proposed that:
H4: Individuals who have higher educational attainment are more likely to have more intention to
avail bank deposit services than having lower educational attainment.
2.6.2 Gender
There is a considerable amount of research documenting a significant difference on how men and
women behave financially. Men avail financial services as well as invest in risky investment such stocks
and bonds more than women. In the perspective of the prospect theory, loss aversion is the behavioral
tendency to be more sensitive to losses relative to gains (Kahneman & Tversky, 1979). Croson and
Gneezy (2009) find that the significant gender variation in financial behavior is because women are
more loss averse compared to men. They find that women exhibit a more severe loss reaction, leading
to a higher risk aversion than men. Examining cross-country differences in gender use of banking
services among 98 developing countries, Demirguc-Kunt and colleagues (2013) found that where
women are restricted to work, lead a household, decide where to live and receive family inheritance,
women tend to avail financial services less likely relative to men. Their study also validates the
manifestation of gender norms in societal culture which adds to gender difference in the use of
financial services such as: 1) where women home-make and men provide for the family, 2) where there
is high violence and discrimination against women and 3) where there is a high incidence of early
marriage (Demirguc-Kunt et al., 2013).
Furthermore, Bajtelsmit and Bernasek (1996) found that this difference is caused by mental
cognition on how men and women process information brought by differences in income,
discrimination, employment, experience, preferences, and human capital choices. The discussion of
loss aversion between the two genders has two sides of the argument. One position is that men take
excessive risk while the other position is that women generally invest conservatively (Hinz et al.,
1997). Barber and Odean (2001) looked at overconfidence between men and women in investment
decisions as another way to explain such differences. Overconfidence is a bias wherein individuals
overestimate their skills relative to their actual skills. Croson and Gneezy (2009) corroborated the
study of Barber and Odean that men are more overconfident than women. In addition, Agnew (2006)
reported that men are more likely to take riskier investments such as investment in stocks and bonds
while women tend to invest in less riskier investments like bank deposits. Related to this, in terms of
investments, men primarily feel anger (which leads to overconfidence) while women feel fear (which
leads to loss aversion).
In addition, Almenberg and Dreber (2015) suggest that gender differences in financial literacy can
explain a significant part of the gender gap where men are typically more financially literate than
women. It is therefore worth studying if the same is true in the context of the Philippines and in future
studies assess whether improving financial literacy and financial inclusion among women could
improve their access to financial services.
Thus, we infer the next hypothesis:
H5: Males are more likely to have higher level of intention to avail bank deposit services than
females.
2.6.3 Age
Financial literacy increases with age as individuals mature (Atkinson & Messy, 2012). However,
cognitive deterioration happens to aging individuals. According to the same study, people with the age
group 30 to 60 have the highest financial literacy which translates to higher intentions towards
financial services. The devoted time and effort to studying the financial markets is reflected by the age
of the individual. Studies on cognitive aging show that cognitive abilities, especially memory, decline
with age (Horn, 1968; Salthouse, 2000). Agarwal, Driscoll, Gabaix and Laibson (2009) examine the life-
cycle patterns of financial decision errors, such as, suboptimal use of credit card balance transfer
offers, incorrect estimation of the value of own house, and excess interest rate and fee payments. The
authors recognize that the individual’s financial sophistication and economic behavior varies with age
and that the pattern is similar to the relationship between cognitive abilities and age. In addition,
Korniotis and Kumar (2009) examine the role of cognitive aging on the stock investment decisions of
older investors. Consistent with the financial sophistication life-cycle pattern, this research found that
older investors have inferior investment skills and they earn on average 3% to 5% lower returns
annually on a risk-adjusted basis compared to younger adults. According to the cohort effect on aged
population, older people with experience of a very different financial marketplace may find it difficult
to keep up with new technologies in the financial marketplace. With the advent of new technologies
attached to banking and investment, younger individuals would tend to show interest and subscribe
to new ways of banking and investing. Thus, we postulate that:
H6: Younger individuals are more likely to have more intention to avail bank deposit services.
2.6.4 Income
Income represents the cash inflow of an individual that is needed to avail of financial services.
Conceptually, people who have more income are more likely to avail of financial services (US
Government Accountability Office, 2022). Individuals with higher income tend to have more
disposable income. Therefore, individuals earning more would be able to save and invest more
compared to individuals who are earning less.
Moreover, the behavioral life-cycle theory states that individuals maximize their inter-temporal
utilities over their lifetime with the full knowledge of their lifetime income (Agustin et al, 2016). The
goal of the individual is to better manage their consumption behavior by availing of certain financial
products and services designed to meet this particular goal. It is therefore worthwhile to investigate
whether or not high-income individuals tend to increase their use of financial services than their low-
income counterparts.
Past studies have shown that income is correlated with intention to avail of formal banking. For
example, Servon and Kaestner (2008) found that interest in the impact of online banking are more
pronounced in the lower-income sector which has yet started exposure to banking. In Bangladesh,
Khan et al (2007) found that income and education have significant role in customers’ usage of Islamic
banks. In the Philippines, Chiu et al (2017) found that initial trust towards banking can be affected by
income as well.
Therefore, the prediction is that:
H7: Individuals with higher income are more likely to have more intention to avail bank deposit
services compared to their low-income counterparts.
2.6.5 Employment
An individual’s work status might be affecting his or her disposition towards banking behaviors.
Intuitively, employment provides a steady salary which is the usual source of funds for personal
banking transactions. Obviously, no salary would mean a severe lack of funds to save. Research has
demonstrated this effect and association of employment status in banking attitudes and behaviors. For
example, Borden and colleagues (2008) have said that employment status predicted financial
knowledge, attitudes, and behaviors. Also, Calvet et al (2009) linked professional status and lack of
jobs to financial sophistication (i.e., literacy and interest). Similarly, Stolper and Walter (2007) have
suggested that professional status is related to financial literacy, financial behavior, and financial
advice interest. Finally, Ruberton and Gladstone (2016) connected happiness or life satisfaction to
banking attitudes as determined by individuals’ employment status, alongside relationship status and
age as correlates.
Thus, the next hypothesis for this research is:
H8: Individuals who are employed are more likely to have more intention to avail bank deposit
services than being non-employed.
2.6.6 Membership in pension

Individuals’ membership in pension could also affect the intention to save money in banks. For
instance, if one has pension availed due to employment or have voluntarily gotten one, he or she could
just ignore saving money in formal banks as the pension would cover for future expenses. On the other
hand, a common scenario is that the auto-membership to other financial services tied to certain
banking products and services leaves the individual with no choice but avail of bank accounts.
However, despite this growing phenomenon, very little research has attempted to investigate this
relationship. Shaw and Waite (2015) mentioned that Australian research examines an auto-enrolment
policy indicates young men choose enjoying life over savings for retirement. Another extant research
suggests that the introduction of mandatory pension plan increases saving intentions (Thaler and
Shefrin, 1981).
Therefore, the next hypothesis for this research is:
H9: Individuals who are members of pensions are more likely to have more intention to avail bank
deposit services than those who are not.
2.6.7 Size of household

Finally, the demographic variable relating to size of family or household also helps to predict
intention to save surplus money to formal banking. The household size determines expressions of
attitudes, expectations, and economic activity that can include savings behavior (Lindqvist, 1981).
Research on developed and developing countries consistently illustrate that the number of household
members is negatively related to household savings, e.g., Browning and Lusardi (1996), Loayza and
Shankar (2000), Gardiol (2004), and Orbeta (2006). This pattern could lead in the dispositional
intention towards banking services. Thus, our final hypothesis is:
H10: Increased size of one’s household decreases the individual’s intention to avail of formal bank
services.
3 Methodology
3.1 Data from the BSP Consumer Financial Survey (CFS)

The CFS is a nationwide quadrennial survey on consumer finances among Filipino households. It
generates data on the financial conditions of households, including what they own (financial and non-
financial assets) as well as from whom and how much they borrow (sources of credit and level of
indebtedness). It also generates data on the income, spending and insurance coverage of households
(BSP, 2014).
CFS used the 2003 Master Sample (MS 2003) from the Philippine Statistics Authority (PSA). This
MS 2003 used a two-stage sampling with stratification at the primary sampling unit: on stage 1,
households were stratified in terms of Enumeration Areas (EA)/”Barangays”/Villages. Random
samples of EAs were drawn in each region with probability proportional to the size (i.e., total number
of households) of the EA. In the second sampling stage, random samples of 12 households for the
national capital region and 16 for areas outside the national capital region were selected from each of
the sample EAs.
CFS was conducted through a survey that encouraged participation among households by a letter
sent by the central bank governor informing the households of the CFS, its objectives, and the
confidentiality of their responses. The survey-taker identified the appropriate survey respondent: the
person living in the household who is the most knowledgeable and credible to answer questions about
household finances. The respondents may, however, consult any person in their households or look
for documents that helped them answer accurately. The survey was conducted from July 2014 to
January 2015 with a response rate of 86.2 percent (BSP, 2014). The following table shows the details
of the response rates:
Table 1. Response Rates of the Household Surveyed

Sample % share of sample Respondent Response
Area
Households households Households Rate
Philippines 18,000 100 15,503 86.1
National Capital Region 1,962 10.9 1,565 79.8
Areas outside the capital 16,038 89.1 13,938 86.9
North/Central Luzon 4,387 24.4 3,987 90.0
South Luzon 3,860 21.4 3,395 88.0
Visayas 3,248 18.0 2,799 86.2
Mindanao 4,543 25.2 3,757 82.7
(Source: BSP, 2014)
Using the 2014 CFS dataset described at the onset, the variables that serve as proxies to the
concepts proposed to describe Filipino consumers’ financial behaviors were extracted. The unit of
observation in the study is the respondent who is the most knowledgeable about household finances.
3.2 Dependent Variables

To describe further the items utilized from the 2014 CFS, the following variables in the dataset were
used:
(Banki) Intentions to avail of bank deposit services (“banking intentions”), the CFS variable with
code “L1: If you have surplus money, where will you put the money?” was used for this variable.
Answers indicating “deposit/save in bank” were extracted. The variable then was transformed into a
categorical “1” if the answer was “deposit/save in bank” or “0” otherwise. This indicates if the
respondent intends to use bank deposit services.
3.3 Independent Variables

Three primary independent variables were represented by the following CFS variables:
3.3.1 Banking Behaviors

(X1) The attitudes toward banking behavior was extracted from the CFS variable code “E70a: I like
to save money using a banking institution”. The responses were collected using a Likert scale: “1” as
strongly agree, “2” as agree, “3” as neither agree/disagree, “4” as disagree and “5” as strongly disagree.
Therefore, a unit increase in the variable represents a positive attitude towards banking services
behavior.
(X2) The subjective norm variable utilized a proxy variable wherein the respondent has no deposit
account, but another household member instead (CFS code E4a-c). The variable was then transformed
into a categorical variable to indicate if the household where the respondent belongs has a member
(aside from the respondent) who has a bank deposit account in the form of checking, savings or time
deposit account with any deposit-taking bank regulated by the BSP. It is a dummy variable with a value
of “1” if at least a member exists, otherwise the value is “0”.
(X3) Perceived behavioral control in availing a bank deposit service was represented by the CFS
items “E70d: I just don’t earn enough money to save regularly” and “E70e: I don’t think I’m saving
enough for the future.” The answers were elicited using a Likert scale: 1= strongly agree to 5= strongly
disagree. The answers to the two items were averaged. Thus, a unit increase in this variable represents
positive perceived behavioral control.
3.4 Demographic Variables

As conceptualized, demographic variables are important determinants of the contingencies of
intentions and actual behaviors on financial services. The CFS database has a rich resource for these
variables:
3.4.1 Educational Attainment

The study utilizes two education dummy variables from the ten highly granular categorizations of
the CFS to underscore the two major educational completion attainment in the Philippines – whether
one is able to finish high school or not (X4-1), and if one is able to finish college (X4-2). The base category
(0) is a person who has an education less than a high school graduate.
3.4.2 Gender (X5)

The variable is a categorical variable to indicate if the gender of the respondent. It is a dummy
variable with a value of “1” if the respondent is a male, otherwise the value is “0”.
3.4.3 (X6)
Age (X6) is the actual age of the respondent as of survey date. The age brackets were defined
according to marketing segmentation labels (Hecht, 2022): millennials (aged 14-32), generation x (33-
48), and ‘baby boomers’ (49 and up) by 2014.
3.4.4 Annual Household Income (X7)

The variable is the total sum of the respondent and other household members’ income. The CFS
survey did not explicit ask an estimated household income. Instead we derived the income information
to essentially capture the following sub-information: primary and secondary income of respondent +
other income of respondent + primary and secondary income of spouse + other income of spouse +
business income of respondent and spouse. The codes used from the CFS were: I-13a-d: How much in
gross salary or wages were you paid before taxes and other deductions in 2013? Is this in—
(denomination)?; I-14a-d: Is that amount per day, per week, per month, per quarter, every 6 months
or per year?; I-16a-f: How much did you receive from the earnings or profit of this company or
business? Is this in--?; I59a-f: About how much was your spouse/partner's total income and benefits
from this job in 2013? Is this in –?; I60a-b: Is that amount per day, per week, per month, per quarter,
every 6 months or per year?, I-63a-l: How much did your spouse / partner earn in 2013 from each of
these other jobs? Is this in--?; J19a-f: How much in gross salary or wages were you and/or your
spouse/partner paid in 2013?; J20: Is that amount per day, per week, per month, per quarter, every 6
months or yearly?. The resulting variable is an annual household income. In the model, three level-
bracket was used according to the 2015 middle-income classification by the Philippine Statistics
Authority (Virola et al, 2022): low-income (base 0) = < PHP 104,150, middle-income (X7-1) = > PHP
104,150 < PHP 1,341,157, high-income (X7-2) = > 1,341,157 per year.
3.4.5 Employment (X8)

Using CFS code I-1 “What was your employment status in 2013?”, the responses were extracted
and recoded into 1= employed (including those that were self-employed, employer of a business, and
OFW). Otherwise, the other responses were recoded into 0=Unemployed.
3.4.6 Membership in Pension (X9)

The item on GSIS and SSS insurance of the respondent were directly extracted from item HA: Do
you have GSIS/SSS plan or insurance? The responses were either Yes or No.
3.4.7 Household Size (X10)

This variable literally counts the number of household numbers asked in item B1 (household
number of members).
3.5 Econometric Model

To statistically illustrate the proposed model of the study in its aim to describe the effects of
attitudes, behavioral control, and subjective norms towards financial behaviors, the following formula
is used. Logistic model theoretical derivations are discussed in Menard (2002). The following
equations show the multinomial logit model used in the analysis of banking behaviors:
Logit [P(Banki=1)] = a + 𝛽𝛽𝛽𝛽 1X1 + 𝛽𝛽𝛽𝛽 2X2 + …+ 𝛽𝛽𝛽𝛽 kXk (1)
where Banki: is the intention to avail of banking services (i.e., whether to use banking or not for surplus
money)
𝛽𝛽𝛽𝛽s: are the logistic regression coefficients to be estimated for each of the independent variables
Xs:
X1: attitudes towards banking
X2: whether a family member (instead of the respondent) has a bank account (“subjective
norm”)
X3: perceived behavioral control
X4-1: educational attainment 1 (high school graduate or not)
X4-2: educational attainment 2 (college graduate of not)
X5: gender (male or female)
X6: age (bracketed into three categories)
X7-1: middle-income annual income (base: low-income)
X7-2: high-income annual income (base: low-income)
X8: employment
X9: membership in pension
X10: household size
The specific levels of each of the variables above are described in the methodology section. The
study used STATA statistical software to compute for the marginal effects and test for the significance
of the variables in explaining the Filipino’s decision whether to avail deposit services or not.
Logit regression was used as the dependent variable is treated as a binary (1=surplus money to put
in bank or 0=otherwise). The logit regression is a nonlinear model that forces the output or predicted
values to be either 0 or 1.
STATA statistical software was also employed to conduct the regression analysis following the
proposed econometric model. The data on the behavioral variables that had more than one survey item
were averaged to obtain an aggregated value. Chi-square analysis was conducted to understand the
relationships between the variables. Logistic regression was conducted to predict and explain the
dependent variable using a covariate of independent variables (Hair et al., 2006). Logistic regression
is a statistical tool that is used to predict the likelihood of a discrete outcome (0 or 1) from a set of
variables that may be continuous, discrete, dichotomous, or a combination. The dependent variables
in the current study are dichotomous (1 if the consumer actually uses bank or invest; also if consumer
intends to use bank; and 0 otherwise) logistic regression is the appropriate method to predict the
likelihood of the dependent variable occurring given the set of independent variables.
4 Results and Discussions

The CFS 2014 had a sample of 15,503 respondents randomly chosen across the country. In terms
of age of respondents, the working population group (21 to 64 years old) comprises majority of the
sample with 84.2%. Furthermore, most of the respondents have an education less than a high school
diploma with 71% of the respondents. Also, 21.4% have at least a high school diploma but not a college
degree. College graduates only comprise about 7.5% of the total sample. Majority of the respondents
are female with 61.4% of the population while male respondents account for 39.6% of the population.
The average monthly income of respondents is PhP 23,172 with majority of the respondents having a
monthly income of below PhP 5,000 (38.6%) which is below the minimum wage set by the government
(PSA, 2014). The number of respondents employed in the financial services industry is 109 or 0.7% of
the total respondents.
A deposit account is required to have access to a whole slew of banking services like credit,
investment, and payment services. Only 12.4% of the respondents reported having a deposit account
with a banking institution which means that 87.6% of the respondents are unbanked and has no access
to any bank services. Deposit intention among Filipinos is higher than those with actual deposit
accounts with about 41.2% of the respondents indicating that given the opportunity and means to avail
of a deposit account, they will do so. Investment in stocks, bonds and pooled funds is significantly small
at only 0.2% of the respondents, signifying that Filipinos do not take advantage of the benefits of
financial investments. This situation is an opportunity for financial services firms to expand to and
engage in their financial services. Likewise, although higher than those with actual investments in
stocks, bonds and pooled funds, the number of Filipinos intending to invest in these assets is also low
at only 3% of the respondents.
Table 2. Descriptive statistics of respondents and response summaries of the sample (i.e., no savings
deposit accounts) from the Consumer Finance Survey 2014
Variable n %
Age group
Millennials (14 – 32 yo) 1,655 12.2%
Generation X (33 – 48 yo) 5,157 38.0%
Baby Boomers (>49 yo) 6,763 49.8%
Variable n %
Education
Below high school graduate 9,812 72.3%
High School graduate 2,919 21.5%
College graduate 844 6.2%
Gender
Male 5,312 39.1%
Female 8,563 63.1%
Average Annual Income, in Philippine Peso PHP (Average: PHP 137, 202.76)
None-Low: Below PHP 104,150 11,220 82.65%
Middle: > PHP 104,150 < PHP 1,341,157 2,186 16.10%
High: > 1,341,157 169 1.24%
Employed
Not employed 6,575 48.4%
Employed 7,000 51.6%
With Government Pension
Yes 2,627 19.4%
No 10,948 80.6%
Household size (Average = 4.9)
Small (1 – 4) 6,534 48.1%
Medium (5-10) 4,550 33.5%
Large (>11) 2,491 19.3%
Banking (Deposit) Intention
Has deposit intention 5,080 37.4%
Has no deposit intention 8,495 62.6%
Attitude towards opening a bank account (Average: 2.35)
1 strongly agree 1,459 10.7%
2 agree 7,858 57.9%
3 neutral 2,410 17.8%
4 disagree 1,738 12.8%
5 strongly disagree 110 0.8%
Family with bank account
With bank account 250 1.8.%
With no bank account 13,325 98.2%
Perceived Behavioral Control 1 (Average = 2.11)
2 agree 8,766 64.6%
3 neutral 1,775 13.1%
4 disagree 850 6.3%
Perceived Behavioral Control 2 (Average = 2.24)
2 agree 7,965 58.7%
3 neutral 1,922 14.2%
4 disagree 1,460 10.8%
Total 13,575 100.0%
(Source: BSP, 2014)
4.1 Intentions towards Banking Behavior

The logistic regression results show that among the three predictors of intention of the banking
behavior, two were significant: social norms and perceived behavioral control. Attitudes towards
banking, although was consistent with the stated hypothesis that attitudes precedes intent, the result
was not significant. Among the demographic variables offered, educational attainment, gender, age
bracketed into generations, employment and membership in pension were found to be predictors of
intention towards putting surplus money in a formal banking service. Table 3 presents the logistic
regression results.
Table 3. Model summary on the effects of independent variables to formal banking behavioral intentions
Intention to Save Surplus Money in Formal Bank
Independent Variables Accounts
β SE z P
Attitude toward banking 0.0186 0.0207 0.90 0.369
1= Disagree, 5=Agree
With a family member with a bank deposit 0.4397 0.1295 3.39 0.001*
account
1=Yes, 0=No
Perceived Behavioral Control 1: 0.6158 0.0272 2.26 0.024*
“I just don’t earn enough money to save
regularly”
1=strongly agree, 5= strongly disagree
Perceived Behavioral Control 2: -0.1098 0.2344 -4.68 0.000*
“I don’t think I’m saving enough for the
future”
1=strongly agree, 5= strongly disagree
Educ. Attainment 1 0.0873 0.0449 1.94 0.052*
1= Finished high school, 0= Not finished high
school
Educ. Attainment 2 0.3344 0.0741 4.51 0.000*
1= Finished college, 0= Not finished college
Gender 0.0873 0.0403 2.17 0.030*
1=Male, 0=Female
Age Bracket (base=millennial)
2= Gen X -0.0864 0.0595 -1.45 0.147
3= Baby Boomers -0.1202 0.0572 -2.10 0.036*
Annual Income (base 0 = low-income)
1= middle-income 0.1361 0.0439 3.10 0.002*
2= high-income -0.4757 0.1831 -2.60 0.009*
Employment (1=employed, 0=otherwise) -0.0818 0.0390 -2.09 0.036*
Membership in pension fund (e.g., SSS, GSIS) 0.3420 0.0451 7.59 0.000*
1=yes, 0=otherwise
Size of Household -0.0108 0.0079 -1.36 0.175
Constant -0.4287 0.1059 -4.05 0.000
Model Summary N=13,575
Goodness of Fit
Pseudo R2 = 0.0094
Hosmer-Lemeshow Test, p <.01
𝜒𝜒𝜒𝜒2 = 168.65
We also estimated the average marginal effects (AME) of the independent variables towards formal
banking intentions. Using the delta method of estimation of marginal effects describes the average
predicted probability influenced by the factors. Table 4 shows the results of the delta method.
Table 4. Marginal effects of proposed independent variables to intention to put surplus money in a formal
banking
dy/dx
Independent Variable SE z p value
(Delta Method)
Attitude toward bank .0043058 .0047895 0.90 0.369
Subjective norm .1016704 .0299068 3.40 0.001*
Perceived behavioral control 1 .0142405 .0062881 2.26 0.024*
Perceived behavioral control 2 -.0253978 .0054059 -4.70 0.000*
Educational attainment 1 (HS or not) .0202631 .0104959 1.93 0.054*
Educational attainment 2 (college or not) .0795316 .0180233 4.41 0.000*
Gender (1=male) .020191 .0093084 2.17 0.030*
Age, if Gen X (base=millennial) -.0202202 .0139928 -1.45 0.148
Age, if Baby Boomer (base=millennial) -.0280073 .0134365 -2.08 0.037
Annual Income (base 0 = low-income)
1= middle-income .0318396 .0103517 3.08 0.002
2= high-income -.1014043 .0355892 -2.85 0.004
Employment -.0197077 .0090203 -2.18 0.029
Membership in Pension .0805714 .0103304 7.80 0.000
Size of Household -.0023638 .0018297 -1.29 0.196
Note: dy/dx for factor levels is the discrete change from the base level.
4.1.1 Attitude toward banking behaviors

A more favorable attitude toward using a bank deposit account (moving downward to a rating of
1) increases the probability (at β=0.0186) of the intention to avail of a bank deposit account. This is in
line with the theory of planned behavior which states that attitude toward the behavior increases the
intention and behavior of an individual. However, the effect was not significant (p=0.369). The result
may descriptively imply a stronger translation of a positive attitude toward using a deposit account on
the behavior of using a bank deposit account.
The average marginal effect shows that a unit-scale improvement in the attitude toward using a
deposit account increases the probability of availing a deposit account and the intention to avail a
deposit account by only 0.43% holding other variables constant. The result implies a weak translation
of a positive attitude toward using a deposit account.
4.1.2 Social influences on banking behaviors

The presence of a household member who owns a bank account, other than the respondent,
significantly affects the probability that the respondent may put his or her surplus money to a deposit
account in a bank. The results show that such co-household member’s banked status increases
(β=0.4397, p=0.001) that chance that the unbanked respondent will have higher tendency to save
money in bank.
This confirms the effect of social influence on the intention of an individual to avail bank deposit
services. Propinquity effect states that individuals tend to form close relationships and influence each
other by repeated encounter (Nahemow & Lawton, 1975). Furthermore, financial socialization
explains the mechanism through which propinquity to a household member with the experience and
knowledge in bank deposit services translates to the corresponding increase in individual’s intention
and behavior.
Based on the AME, the influence of the presence of a banked co-household member has a strong
effect on the respondent’s intention to avail bank deposit account by 10.16% holding other variables
constant. This means that when a respondent lives with a household co-member who are banked, there
is a 10.16% chance that he/she will also put surplus money in a bank. This marginal effect is highly
significant at the p<0.001 level.
4.1.3 Perceived behavioral control in banking behaviors

One unit increase in the scale on perceived behavioral control variable 1 (“I just don’t earn enough
money to save regularly”) on a reverse degree (5=strongly disagree) increases the probability that the
respondent will have higher intention to deposit surplus money in a bank (β=0.6158, p=0.024). In
other words, when a respondent perceives that he or she does earn money to save regularly, the
tendency is to have a higher probability that he or she will intend to put surplus money in a bank. The
marginal effect of this statement of controllability to perform a focal behavioral intention is computed
at 1.424%. Meaning, for every unit increase in the scale answer that the respondent perceives
controllability to earn enough money to save, an increase on intentional level at marginal chance at
1.424% could happen. This effect was significant at p=0.024.
On the other hand, the effect of perceived behavioral control expression: “I don’t think I’m saving
enough for the future” on a reverse degree (5=strongly disagree) is found to be negatively affecting the
probability of higher intention to save surplus money in a bank. The regression beta was at β= -0.1098,
significant at p=0.00. In a revert sense, when a respondent perceives that he or she does think he/she
saves enough for the future (a unit scale lower in the questionnaire), the tendency is to have a lower
probability that he or she will intend to put surplus money in a bank. The marginal effect of this
statement of controllability to perform a focal behavioral intention is computed at -2.54%, significant
at p=0.00. The more a respondent disagrees with the statement, the higher the marginal effect to
intention to bank surplus money. In short, if one thinks he or she is saving enough for the future, he or
she will have lower intention to open a bank account.
4.1.4 Demographic differences in banking behaviors
a. Educational Attainment
The results on educational attainment were presented into two variables. One compares these
coefficients of those that have finished high school versus those who have not. The other analyzes the
coefficients of those that have finished college versus those who have not. Both have produced
significant effects to the intention to put money in a formal bank. Those respondents that have finished
high school are more probably putting surplus money to banks than those that have not finished high
school (β=.0.0873, significant at p=0.052).
Meanwhile, those that have finished college also have higher probability of putting surplus money
in a bank than those that did not finish college. The effect was observed to be stronger (β=.0.3344,
significant at p=0.00). In other words, as educational attainment increases, the higher the probability
of banking intentions.
b. Gender
Unbanked men are more likely to put surplus money in a bank than women according to the results
of the regression (β=0.0873, significant at p=0.03). The marginal effects by delta method also
illustrates that unbanked men are 2.02 more likely put surplus money in a formal bank than women.
c. Age
The analysis bracketed the age groups according to popular generational terminologies used such
as in marketing: millennials, generation x, and baby boomers. The CFS 2014 allows for this data
recoding based on the current year versus 2014. Results showed that compared to millennials who
were 14- to 32-year-olds, members of Generation X (33- to 48-year-old) have lower intention to put
surplus money in a formal bank. However, this effect was not significant (p=0.141).
Notably though, compared to millennials, the baby boomers of more than 49-year-old in 2014, also
have lower intention to put surplus money in a bank. This result was significant at p=0.036).
d. Annual income
The results show that unbanked middle-income respondents have higher intentions to save surplus
money to a formal banking compared to their low-income counterparts. The coefficient was at
β=0.1361, significant at p=0.002. Interestingly, unbanked high-income respondents also have the same
direction as low-income individuals – they both have lower intention to save surplus money to a formal
bank (β= -0.4757, p=0.009). One possible interpretation is that unbanked high-income respondents
put their surplus money somewhere other than in formal savings bank accounts.
e. Employment
Surprisingly, unbanked and unemployed respondents have higher intention to put surplus money
in a bank than those that are unbanked and employed. The regression beta for the dummy variable
was at β= –0.0827, significant at p=0.034. Being unbanked and employed decreases intention to avail
of banking services by 1.97%. One possible reason is that the nature of employment might be entailing
lower salary and does not give way to surplus. Another possible reason is that the nature of the
employment and the industry is such that there is little need for banking transactions or has very low
bank penetration rates, such as those who work in farms and fisheries.
f. Membership in Pension
The effect of membership in government pension towards unbanked respondents was significant
(β= 0.3474, p=0.00). Those that have pension plans have higher intention to put surplus money in a
formal bank.
g. Household Size
Finally, the size of household negative affects the respondent’s intention to put surplus money in a
formal bank. The effect was a β= –0.0101, but was not significant at p=0.202.
5 Summary and Conclusion

In summary, for individuals who are unbanked, the intention to avail of formal banking services for
surplus money significantly increases with the following predictors as stated in the hypothesis: (H2)
the unbanked individual has a co-household member that is banked, (H3) the individual perceives that
he or she does earn money to save regularly; and that he or she does not think he or she saves enough
for the future, (H4) the individual has higher educational attainment, (H5) is male, (H6) is younger,
(H7) comes from a middle-income household, (H8) is unemployed, and (H9) a member of pension plan.
Comparing the results with previous studies cited in the review, the planned behavioral factors of
attitudes, social norm, and perceived behavioral control exhibited mixed results. The expressed
positive attitudes towards banking do not significantly lead to higher intention to put surplus money
in a bank. This is largely contrarian to several research presented in the review. This kind of attitude–
intention inconsistency can be explained by the mediating factors that can be guided by situational and
dispositional processes as well (Fazio, 1990; Zanna et al 1980). Such dispositional factors are
demonstrated in the current results on the effect of perceived controllability over putting surplus
money in a formal bank wherein an unbanked individual who thinks that he or she is not saving enough
for the future will actually put surplus money in a formal bank.
The social influence coming especially from immediate family members is a significant factor in
banking (e.g., Ghalandari, 2012; Wahyuni, 2012), and savings behavior (e.g., Alwi & Ali, 2015; Jamal et
al., 2015). Also, the idea of perceived behavioral control is an important factor in savings is consistent
with previous research (Jamal et al., 2015; Sharif & Naghavi, 2020; Widyastuti et al., 2016). The
intricacy of the overall structure of controllability in the surrounding dispositional attitudes may be
more complex than a straightforward expression of perceived control such as what the results
demonstrated. The statements on ‘earning enough money’ have a different direction than ‘saving
enough for the future’ in determining intentions to put surplus money in a formal bank.
As for the demographic variables, the results on educational attainment is consistent with the
findings by Kaynak and Harcar (2005) and Loaba (2022), and can be due to the relationship with
financial literacy as what Andreou and Anyfantaki (2021) assert. Also, this current study’s result on
gender that unbanked men are more likely to put surplus money in a formal bank than women is also
consistent with previous research. Thirdly, the younger generation that is unbanked expresses higher
intention to avail of formal banking as well. The results involving annual income also suggest that
middle-income individuals have a higher intention to put surplus money in formal banking. The none-
to-low-income and the high-income counterparts have less intentions to do so. Furthermore, the
results also indicate that membership in pension can lead to saving intentions in a formal bank. Finally,
the household size result, albeit non-significant, was consistent with the several past research saying
that this particular variable has a negative relationship with banking intentions.
This study provides empirical evidence that attitudes, social influence, and perceived behavioral
control influence banking behaviors among Filipinos. Essentially, encouraging financial behaviors
depends primarily on how Filipinos think about the ability and controllability to save. The attitude
towards the gains of proper financial management such as those manifested in banking behavioral
intentions can be directed towards the benefit frame. This can be achieved by understanding how
cognitive perceptions towards money (i.e., saving) and how social norms in immediate social circles
can be favorably utilized towards encouraging saving in a formal bank.
These findings also have substantial implications on public policy and private companies in
enabling Filipinos to be more favorable in their financial behaviors. For policy makers such as the BSP,
programs enabled and the strategies employed should deeply understand individuals in their attitudes
(i.e., what drives such valence and direction of attitudinal influences), social norms (i.e., who has strong
word-of-mouth power among individuals), and perceived behavioral control (i.e., communication and
actual tactics on how to enable behavioral capability and control as perceived by individuals).
Consumer-centric programs that anchor on behavioral patterns must be established. Finally, focused
interventions and education on behavioral finance may be implemented in select segments such as
those in the younger generation or even those who are under-served in rural areas.
As for the managerial implications among private financial firms, the use of strategic marketing
communications that focus on positive and gain framing require thoughtful considerations. Targeted
campaigns towards identified demographic profilers can also be employed. For example, unbanked
individuals with lower educational attainment need more tailored messages that fit their motivations
towards banking and are anchored towards social influences, and more importantly, perceived
behavioral control on these target behaviors. Similarly, those individuals with less formal education
require strategic messages that are tailor fitted to the communication elements that match their level
of understanding towards these financial behaviors. Message design is a key factor that might enhance
attitudes and perceived behavioral control among target segments.
Finally, the international audience of this research can appreciate the behavioral distinctiveness
among Filipinos who are situated in an Asian community where collectivism is highly manifested – as
seen in the results of social influences towards the target financial behaviors. Moreover, the findings
of this study suggest that there is universality in the attitudes and perceived behavioral control
towards banking and investing relating to the demographic features among groups of consumers,
governed by psychological factors in the attitudes and behavioral intentions.
6 Limitations and Future Research

This study analyzed individuals’ attitudes, social influence, and perceived behavioral control
towards banking and investing behaviors. The data were extracted from a nationwide Consumer
Financial Survey in the Philippines in 2014. The study recognizes that other financial behaviors on
banking can be extracted in future study such as the motivations and reasons for availing of bank
services and subscribing to investment instruments. Furthermore, the degree of influence from
different members of social circle (e.g., parents, siblings, close friends, etc.) can be explored further to
analyze social network and behavioral finance in a deeper perspective. Also, a cross-sectional or
longitudinal analyses in future surveys can be undertaken to monitor which segments need further
attention in enabling financial inclusion as well those which have been receptive to the programs of
the government; also considering cross-country analyses provided that the data and survey
instruments have comparative equivalence. Similarly, the data on these behavioral and psychological
items can be correlated with data on financial inclusion dimensions (Mindra et al, 2017) such as access,
usage, and quality dimensions in behavioral finance. This way, the survey can further scrutinize the
behavioral aspects that directly identify key gain and pain points for the said financial inclusion
dimensions. Finally, to validate the results, an overall perception study of banking and investments as
everyday consumer concepts can be examined – as Antony (2020) puts it, many psychological factors
govern our everyday economic phenomena.
References
Aboelmaged, M. & Gebba, T. R. (2013). Mobile banking adoption: an examination of technology
acceptance model and theory of planned behavior. International Journal of Business Research and
Development, 2(1), 35-50.
Agarwal, S., Driscoll, J.C., Gabaix, X., & Laibson. D. (2009). The age of reason: financial decisions over the
life-cycle with implications for regulation. (Brookings Papers on Economic Activity 2:51-117).
Agnew, J. (2006). Do Behavioral Biases Vary Across Individuals?: Evidence from Individual Level
401(k) Data. Journal of Financial and Quantitative Analysis, 41(4), 938-962.
Agustin, F.M. Z., Ambrosio, P.M., Mones, E.M., & Garoy, E. (2016). Intertemporal Life-Cycle Theory of
Consumption. (Philippine Statistics Authority. 13th National Convention on Statistics. Session 1-4:
Economic Progress.
Ahmed, Z. U., Ismail, I., Sohail, M. S., Tabsh, I., & Alias, H. (2010). Malaysian consumers' credit card usage
behavior. Asia Pacific Journal of Marketing and Logistics, 22(4), 528-544.
Ajzen, I. & Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behavior. New Jersey:
Prentice-Hall.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision
Processes, 50(2) 179-211.
Ajzen, I. (2002). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned
behavior. Journal of Applied Social Psychology, 32(4), 665-683.
Ajzen, I. & Fishbein, M. (2000). Attitudes and the attitude-behavior relation: Reasoned and automatic
processes. European Review of Social Psychology, 11(1), 1-33.
Almenberg, J. & Dreber, A. (2015). Gender, stock market participation and financial literacy. Economic
Letters. 137, 140-142.
Alwi, S., Hashim, I.Z., & Ali, M.S. (2015). Factors Affecting Savings Habits within Millennials in Malaysia:
Case Study on Students of Taylor’s University. (Proceedings of the Fourth Asia-Pacific Conference
on Global Business, Economics, Finance and Social Sciences, Paper ID: KL539).
Andreou, P. C. & Anyfantaki, S. (2021). Financial literacy and its influence on internet banking
behavior. European Management Journal, 39(5), 658-674.
Antony, A. (2020). Behavioral finance and portfolio management: Review of theory and
literature. Journal of Public Affairs, 20(2), 1-7.
Atkinson, A. & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International
Network on Financial Education (INFE) pilot study, (OECD Working Papers on Finance, Insurance
and Private Pensions, No. 15).
Bajtelsmit, V. & Bernasek, A. (1996). Why Do Women Invest Differently Than Men? Financial
Counseling and Planning, 7, 1-10.
Bakir, A., Rose, G., & Shoham, A. (2006). Family Communication Patterns: Mothers' and Fathers'
Communication Style and Children's Perceived Influence in Family Decision Making. Journal of
International Consumer Marketing, 19(2), 75-95.
Bandura, A. (1971). Social learning theory. New York: General Learning Press.
Banerjee, A. (1992). A Simple Model of Herd Behavior. The Quarterly Journal of Economics, 107(3) ,
797-817.
Bangko Sentral ng Pilipinas. (2014). Consumer Finance Survey. Retrieved from:
https://www.bsp.gov.ph/Media_And_Research
Bangko Sentral ng Pilipinas. (2018). Report on the State of Financial Inclusion in the Philippines.
Retrieved from: https://www.bsp.gov.ph/Media_And_Research.
Bangko Sentral ng Pilipinas. (2021). Financial Inclusion Survey Report. Retrieved from:
https://www.bsp.gov.ph/Inclusive%20Finance
Bangko Sentral ng Pilipinas. (2023). Inclusive Finance. www.BSP.gov.ph
Barber, B. & Odean, T. (2001). Boys will be Boys: Gender, Overconfidence, and Common Stock
Investment. Quarterly Journal of Economics, 116(1), 261-292.
Bernheim, B.D. (1994). A Theory of Conformity. Journal of Political Economy, 102(5), 841-877.
Bhabha, J. I., Kundi, G. M., Qureshi, Q. A., Khan, S., & Nawaz, A. (2014). Factors affecting the attitude of
working-women towards saving-investment in developing countries. Journal of Economics and
Sustainable Development, 5(11), 36-41.
Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A Theory of Fads, Fashion, Custom, and Cultural
Change as Informational Cascades. Journal of Political Economy, 100(5), 992-1026.
Borden, L.M., Lee, S., Serido, J., & Collins, D. (2008). Changing College Students’ Financial Knowledge,
Attitudes, and Behavior through Seminar Participation. Journal of Family and Economic Issues,
29(1), 23-40.
Browning, M. & Lusardi, A. (1996). Household Saving: Micro Theories and Micro Facts. Journal of
Economic Literature, 34(4), 1797-1855.
Bursztyn, L., Ederer, F., Ferman, B., & Yuchtman, N. (2014). Understanding Mechanisms Underlying
Peer Effects: Evidence from a Field Experiment on Financial Decisions. Econometrica, 82(4), 1273-
1301.
Calvet, L.E., Campbell, J.Y., & Sodini, P. (2009). Measuring the financial sophistication of households.
The American Economic Review, 99(2), 393–398.
Campbell, D. (1963). Social attitudes and other acquired behavioral dispositions. In S. Koch, Psychology:
A Study of a Science (pp. 94-172). New York: McGraw-Hill.
Chien, Y. W. & Devaney, S. A. (2001). The Effects of Credit Attitude and Socioeconomic Factors on Credit
Card and Installment Debt. Journal of Consumer Affairs, 35(1), 162–179.
Chiu, J. L., Bool, N. C., & Chiu, C. L. (2017). Challenges and factors influencing initial trust and behavioral
intention to use mobile banking services in the Philippines. Asia Pacific Journal of Innovation and
Entrepreneurship, 11(2), 246-278.
Cole, S. & Shastry, G.K., (2009). Smart Money: the Effect of Education, Cognitive Ability, and Financial
Literacy on Financial Market Participation. (Harvard Business School Working Paper 09-071).
Croson, R., & Gneezy, U. (2009). Gender Differences in Preferences. Journal of Economic Literature,
47(2), 448−474.
Danes, S. M. (1994). Parental perceptions of children's financial socialization. Journal of Financial
Counseling and Planning, 5, 127-149.
Debunque-Gonzales, M., & Corpus, J.P. (2021). Understanding and Measuring Financial Inclusion in the
Philippines. (Philippine Institute for Development Studies Discussion Paper Series No.2021-37).
http://hdl.handle.net/11540/14626.
Demirguc-Kunt, A., Klapper, L., & Singer, D. (2013). Financial Inclusion and Legal Discrimination Against
Women: Evidence from Developing Countries. (The World Bank Policy Research Working Paper No.
6416).
Effendi, I., Murad, M., Rafiki, A. & Lubis, M.M. (2021), The application of the theory of reasoned action
on services of Islamic rural banks in Indonesia. Journal of Islamic Marketing, 12(5): 951-976.
Eifler, S., & Petzold, K. (2019). Validity aspects of vignette experiments: Expected “what-if” differences
between reports of behavioral intentions and actual behavior. In: P. Lavrakas, M.W. Traugott, C.
Kennedy, A.L. Holbrook, E.D. Leeuw, B. West (Eds.), Experimental methods in survey research:
Techniques that combine random sampling with random assignment (pp.393-416). Wiley.
Ellison, G., & Fudenberg, D. (1995). Word-of-Mouth Communication and Social Learning. The Quarterly
Journal of Economics, 110(1), 93-125.
Fazio, R. H. (1990). Multiple processes by which attitudes guide behavior: The MODE model as an
integrative framework. In Advances in experimental social psychology. M.Zanna (Ed.). Vol. 23, pp.
75-109. Academic Press.
Fernandes, D., Lynch Jr, J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and
downstream financial behaviors. Management Science, 60(8), 1861-1883.
Ferrer, J. C. (2017). Caught in a Debt Trap? An Analysis of the Financial Well-being of Teachers in the
Philippines. The Normal Lights, 11(2), 297-324.
Gardiol, I.D. (2004). Les determinants de l’epargne et des choix d’investissement des mé nages au
Nicaragua, Departement d’Econometrie et d’Economie Politique, Universite de Lausanne.
Ghalandari, K. (2012). The effect of performance expectancy, effort expectancy, social influence and
facilitating conditions on acceptance of e-banking services in Iran: The moderating role of age and
gender. Middle-East Journal of Scientific Research, 12(6), 801-807.
Glasman, L. & Albarracin, D. (2006). Forming Attitudes That Predict Future Behavior: A Meta-Analysis
of the Attitude–Behavior Relation. Psychology Bulletin, 132(5), 778-822.
Gopi, M. & Ramayah, T. (2007). Applicability of theory of planned behavior in predicting intention to
trade online: Some evidence from a developing country. International Journal of Emerging Markets,
2(4), 348-360.
Grimes, P. W., Rogers, K. E., & Smith, R. C. (2010). High school economic education and access to
financial services. Journal of consumer affairs, 44(2), 317-335.
Gudmunson, C.G. & Danes, S.M. (2011). Family Financial Socialization: Theory and Critical Review.
Journal of Family Economic Issues 32, (4), 644-667.
Hair, J., Black, W., Babin, B., Anderson, R. & Tatham, R. (2006) Multivariate Data Analysis. 6th Edition,
Pearson Prentice Hall, Upper Saddle River.
Hecht, E. (2022, Sept 2). What years are Gen X? A detailed breakdown of when each generation was
born. USA Today. Retrieved: https://www.usatoday.com/story/news/2022/09/02/what-years-
gen-x-millennials-baby-boomers-gen-z/10303085002/
Hilario, E. (2022, May 19). Number of unbanked Filipinos decreases as digital finance supports daily
needs. Manila Bulletin. Retrieved: https://mb.com.ph/2022/05/19/number-of-unbanked-
filipinos-decreases-as-digital-finance-supports-daily-needs/
Hinz, R., McCarthy, D., & Turner, J. (1997). Are Women Conservative Investors? Gender Differences in
Participant-Directed Pension Investments. (Positioning Pensions for the Twenty-First Century, WP
1996-17).
Hong, J. K., & Lee, Y. I. (2014). Bancassurance in East Asia: Cultural impact on customers’ cross-buying
behaviour. Journal of Financial Services Marketing, 19(3), 234-247.
Horn, J. L. (1968). Organization of abilities and the development of intelligence. Psychological
Review, 75(3), 242.
Jamal, A. A. A., Ramlan, W. K., Karim, M. A., Mohidin, R., & Osman, Z. (2015). The effects of social
influence and financial literacy on savings behavior: A study on students of higher learning
institutions in Kota Kinabalu, Sabah. International Journal of Business and Social Science, 6(11),
110-119.
Jungermann, H. (2004). Decision Making. In C. Spielberg (Ed.), Encyclopedia of Applied PsychologyVol.1
(pp.569-574).
Kahneman, D. & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk.
Econometrica, 47(2), 263-292.
Kasser, T., Ryan, R. M., Zax, M., & Sameroff, A.J. (1995). The relations of maternal and social
environments to late adolescents’ materialistic and prosocial values. Developmental Psychology,
31(6), 907-914.
Kaynak, E. & Harcar, T. D. (2005). American consumers' attitudes towards commercial banks: A
comparison of local and national bank customers by use of geodemographic
segmentation. International Journal of Bank Marketing, 23(1), 73-89.
Khan, M. S. N., Hassan, M. K., & Shahid, A. I. (2007). Banking behavior of Islamic bank customers in
Bangladesh. Journal of Islamic Economics, Banking and Finance, 3(2), 159-194
Korniotis, G. M. & Kumar, A. (2009). Do behavioral biases adversely affect the macro-economy? The
Review of Financial Studies, 24(5), 1513-1559.
Kumar, R. (2017). Strategic financial management casebook. Academic Press.
Lindqvist, A. (1981). A note on determinants of household saving behavior. Journal of Economic
Psychology, 1(1), 39-57.
Loaba, S. (2022). The impact of mobile banking services on saving behavior in West Africa. Global
Finance Journal, 53, 100620.
Loayza, N. & Shankar, R. (2000). Private saving in India. The World Bank Economic Review, 14(3), 571-
594.
Lucas, D.L. (2018, May 28). Many Filipinos seen still “financially illiterate”. Philippine Daily Inquirer.
Retrieved: https://business.inquirer.net/251498/many-filipinos-seen-still-financially-illiterate
Mahardhika, A. S. & Zakiyah, T. (2020). Millennials’ Intention in Stock Investment: Extended Theory of
Planned Behavior. Riset Akuntansi dan Keuangan Indonesia, 5(1), 83-91.
Manstead, A.S.R. (2001). Attitudes and Behavior. In International Encyclopedia of the Social and
Behavioral Sciences. pp. 909-913.
Menard, S. (2002). Applied Logistic Regression Analysis. Sage Publications.
Mindra, R., Moya, M., Zuze, L.T. & Kodongo, O. (2017), Financial self-efficacy: a determinant of financial
inclusion. International Journal of Bank Marketing, 35(3), 338-353.
Mullainathan, S., Shafir, E. (2009). Savings Policy and Decision making in Low-Income Households. In:
R.M. Blank, & M.S. Barr, (Eds.), Insufficient Funds: Savings, Assets, Credit, and Banking amongst Low-
Income Households, (pp.121-145) Russell Sage Foundation Press.
Nahemow, L. & Lawton, M. P. (1975). Similarity and propinquity in friendship formation. Journal of
Personality and Social Psychology, 32(2), 205.
Ning, T., Baker, A., & Peter, P. (2015). Investigating the Disconnect between Financial Knowledge and
Behavior: The Role of Parental Influence and Psychological Characteristics in Responsible
Financial Behaviors among Young Adults. The Journal of Consumer Affairs (49)2, 376-406.
Nomi, M. & Sabbir, M. (2020). Investigating the Factors of Consumers’ Purchase Intention towards Life
Insurance in Bangladesh: An Application of the Theory of Reasoned Action. Asian Academy of
Management Journal, 25(2), 135-165.
Orbeta, A.C. (2006). Children and household saving in the Philippines. (Philippine Institute for
Development Studies, Discussion Paper, Series, No. 2006- 14).
Ozmete, E. (2009). Parent and Adolescent Interaction in Television Advertisements as Consumer
Socialization Agents. Education, 129(3), 372-381.
Parrotta, J. L. & Johnson, P. J. (1998). The impact of financial attitudes and knowledge on financial
management and satisfaction of recently married individuals. Journal of Financial Counseling and
Planning, 9(2), 59-75.
Philippine Statistics Authority. (2014). Minimum Wage Rates by Region, Province and Sector,
Philippines: As of December 2014. Retrieved from: https://psa.gov.ph/sites/default/files/
Tab9.4.pdf
Putri, W. N. D. & Adawiyah, W. (2020). The effect of behavioral finance and financial literacy on
investment intentions among Indonesian investors. In Research on Firm Financial Performance
and Consumer Behavior (pp. 193-218). Nova Science Publishers, Inc.
Rahman, M., Isa, C. R., Masud, M. M., Sarker, M., & Chowdhury, N. T. (2021). The role of financial
behaviour, financial literacy, and financial stress in explaining the financial well-being of B40
group in Malaysia. Future Business Journal, 7(1), 1-18.
Raut, R.K., Kumar, R. & Das, N. (2021), Individual investors’ intention towards SRI in India: an
implementation of the theory of reasoned action. Social Responsibility Journal 17(7), 877-896.
Razafimahasolo, M., Borromeo, R., Sausa, L., Carpizo, R., & Sabado, J. (2016). Impact of financial literacy
on level of stress and academic achievement among college students. Adventist University of the
Philippines, 22.
Rha, J. Y., Montalto, C. P., & Hanna, S. D. (2006). The effect of self-control mechanisms on household
saving behavior. Journal of Financial Counseling and Planning, 17(2), 3-16.
Ruberton, P. M., Gladstone, J., & Lyubomirsky, S. (2016). How your bank balance buys happiness: The
importance of “cash on hand” to life satisfaction. Emotion, 16(5), 575.
Rutherford, L. & DeVaney, S. A. (2009). Utilizing the theory of planned behavior to understand
convenience use of credit cards. Journal of Financial Counseling and Planning, 20(2), 48-63.
Sahni, A. (1995). The Perceived Behavioral Control Construct: Test of a Two-dimensional
Conceptualization for the Consumption Domain. European Advances in Consumer Research, 2, 393-
397.
Salthouse, T. A. (2000). Aging and measures of processing speed. Biological psychology, 54(1-3), 35-54.
Schroder, M.J.A. & McKinnon, S. (2007). Learning good judgement: young
Europeans’ perceptions of key consumer skills. International Journal of
Consumer Studies, 31(2), 152-159.
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for
promoting a successful transition to adulthood. International Journal of Behavioral
Development, 37(4), 287-297.
Servon, L.J. & Kaestner, R. (2008). Consumer Financial Literacy and the Impact of Online Banking on
the Financial Behavior of Lower-Income Bank Customers. Journal of Consumer Affairs, (42)2,
pp.271-305.
Sharif, S. P. & Naghavi, N. (2020). Family financial socialization, financial information seeking behavior
and financial literacy among youth. Asia-Pacific Journal of Business Administration, 12(2), 163-181.
Shaw, K. & Waite, K. (2015). Exploring the pension ‘X factor’ for generation Y men. Journal of Financial
Services Marketing, 20(2), 122–132
Shih, T. Y. & Ke, S. C. (2014). Determinates of financial behavior: insights into consumer money
attitudes and financial literacy. Service Business, 8(2), 217-238.
Stolper, O. A. & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of
Business Economics, 87, 581-643.
Tan, C. & Chua, C. (1986). Intention, Attitude and Social Influence in Bank Selection: A Study in an
Oriental Culture. International Journal of Bank Marketing, 4(2), 43-53.
Tan, E. A. (1991). Overseas Employment, Savings Rate and Income Distribution: The Philippine Case. (UP
School of Economics Discussion Paper 9107).
Thaler, R. H. & Benartzi, S. (2004). Save more tomorrow™: Using behavioral economics to increase
employee saving. Journal of political Economy, 112(S1), S164-S187.
Thaler, R. H. & Shefrin, H. M. (1981). An economic theory of self-control. Journal of Political
Economy, 89(2), 392-406.
US Government Accountability Office. (April 2022). More than 7 million US households have no bank
account. Why? Retrieved from https://www.gao.gov/blog/more-7-million-u.-s.-households-have-
no-bank-account.-why
Van Raaij, W. F. (2016). Understanding consumer financial behavior: Money management in an age of
financial illiteracy. Palgrave Macmillan.
Virola, R., Viernes, M., & Cortel, D. (2022). Was the recent expansion of the Filipino middle-income class
sustained despite the pandemic? (Presentation during the 15th National Convention on Statistics,
October 3, 2022). Retrieved from: https://psa.gov.ph/sites.
Wahyuni, D. (2012) The Research Design Maze: Understanding Paradigms, Cases, Methods and
Methodologies. Journal of Applied Management Accounting Research, 101, 69-80
Webley, P. & Nyhus, E.K. (2006). Parents’ influence on children’s future orientation and saving. Journal
of Economic Psychology, 27(1), 140-164.
Widyastuti, U., Suhud, U., & Sumiati, A. (2016). The Impact of Financial Literacy on Student Teachers’
Saving Intention and Saving Behaviour. Mediterranean Journal of Social Sciences,7(6), 41-48.
World Bank. (2015). World Development Report 2015: Mind, Society, and Behavior. The World Bank.
Retrieved from: https://www.worldbank.org/content/dam/Worldbank/Publications/WDR/
WDR%202015/WDR-2015-Full-Report.pdf
Xiao, J., Kim, J., & Ford, M. (2011). Consumer Financial Behavior: An Interdisciplinary Review of
Selected Theories and Research. Family and Consumer Sciences Research Journal, 34(4), 399-414.
Xiao, J. J. (2020). Financial Literacy in Asia: A Scoping Review. https://ssrn.com/abstract=3743345
Yousafzai, S. Y., Foxall, G. R., & Pallister, J. G. (2010). Explaining internet banking behavior: theory of
reasoned action, theory of planned behavior, or technology acceptance model? Journal of Applied
Social Psychology, 40(5), 1172-1202.
Zajonc, R. B. (1968). Attitudinal effects of mere exposure. Journal of Personality and Social
Psychology, 9(2p2), 1.
Zanna, M. P., Olson, J. M., & Fazio, R. H. (1980). Attitude–behavior consistency: An individual difference
perspective. Journal of Personality and Social Psychology, 38(3), 432.

9147 193 27249 1 10 20230720

Uploaded by

Copyright:

Available Formats

9147 193 27249 1 10 20230720

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

9147 193 27249 1 10 20230720

Uploaded by

Copyright:

Available Formats

Philippine Management Review 2023, Vol. 30, 15-38.

Effects of Filipino Consumers’ Financial Attitudes, Subjective

* Correspondence: [email protected]; [email protected]

2 Review of Related Literature

2.1 Financial Inclusion Status in the Philippines

2.2 Theory of Planned Behavior

Figure 1. Conceptual Framework using the Theory of Planned Behavior

2.3 Role of Attitude on Financial Behavior

2.4 Role of Social Influence and Subjective Norms on Financial Behavior

2.5 Perceived Behavioral Control in Financial Behaviors

2.6 Demographic Differences in Financial Behaviors

2.6.1 Educational Attainment

2.6.6 Membership in pension

2.6.7 Size of household

3.1 Data from the BSP Consumer Financial Survey (CFS)

Table 1. Response Rates of the Household Surveyed

3.2 Dependent Variables

3.3 Independent Variables

3.3.1 Banking Behaviors

3.4 Demographic Variables

3.4.1 Educational Attainment

3.4.2 Gender (X5)

3.4.4 Annual Household Income (X7)

3.4.5 Employment (X8)

3.4.6 Membership in Pension (X9)

3.4.7 Household Size (X10)

3.5 Econometric Model

4 Results and Discussions

4.1 Intentions towards Banking Behavior

4.1.1 Attitude toward banking behaviors

4.1.2 Social influences on banking behaviors

4.1.3 Perceived behavioral control in banking behaviors

4.1.4 Demographic differences in banking behaviors

5 Summary and Conclusion

6 Limitations and Future Research

You might also like