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Methodological Approaches to Analyse Financial Exclusion from an Urban Perspective

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Book cover Modeling, Dynamics, Optimization and Bioeconomics III (DGS 2016, BIOECONOMY 2015)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 224))

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Abstract

This paper aims to appraise the problem of financial exclusion in Spain after the process of banking system restructuration. The paper proposes a theoretical model for explaining the phenomenon of financial exclusion including both “access difficulties” and “difficulties in the use of financial services” as two dimensions that should be jointly considered. The main contribution of this paper is that it broadens the scope of financial exclusion from a theoretical and empirical point of view, and it also analyses the financial exclusion phenomenon at lower units of analysis that have not been previously explored: urban districts and municipalities. We considered Madrid and Barcelona as our scenarios of analysis. The methodological procedure was carried out in two steps: we first validate our theoretical model by applying canonical correlations, and secondly we carried out Quantile Regressions (QR) to estimate the different impact of financial exclusion’s predictors at different points of the empirical distribution. The empirical results indicate a trend towards low-cost retail banking to serve the segment of less profitable customers and a pattern of branch disappearance more pronounced in those territories vulnerable from a socioeconomic point of view.

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Notes

  1. 1.

    Idescat is the Statistics Institute of Catalonia Autonomous Community.

  2. 2.

    The relation between the number of inhabitants and the number of bank branches has previously used in the study of FE in Spain by Alama et al. [2].

  3. 3.

    www.maestre-ediban.com/.

  4. 4.

    We have considered a broader number of factors included in Table 1 as independent variables. Nevertheless, after multicollinearity analysis we have selected the variables included in Table 2.

  5. 5.

    These collectives have also been defined to face a higher risk of use difficulties with banking services (Anderloni and Carluccio [5]; Gloukoviezoff [15]; Devlin [9]).

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Acknowledgements

The authors acknowledge the financial support of Fundación de las Cajas de Ahorro (FUNCAS).

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Authors and Affiliations

  1. Facultad CC. Económicas y Empresariales, UNED, Paseo Senda del Rey 11, 28040, Madrid, Spain

    Cristina Ruza-Paz-Curbera & Marta de la Cuesta-González

  2. Faculty of Business and Communication, International University of La Rioja, UNIR, c/ Almansa 101, 28040, Madrid, Spain

    Beatriz Fernández–Olit

Authors
  1. Cristina Ruza-Paz-Curbera
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  2. Beatriz Fernández–Olit
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  3. Marta de la Cuesta-González
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Corresponding author

Correspondence to Cristina Ruza-Paz-Curbera .

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Editors and Affiliations

  1. LIAAD—INESC TEC, Department of Mathematics, Faculty of Science, University of Porto, Porto, Portugal

    Alberto A. Pinto

  2. Department of Agricultural and Resource Economics, University of California, Berkeley, California, USA

    David Zilberman

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Ruza-Paz-Curbera, C., Fernández–Olit, B., de la Cuesta-González, M. (2018). Methodological Approaches to Analyse Financial Exclusion from an Urban Perspective. In: Pinto, A., Zilberman, D. (eds) Modeling, Dynamics, Optimization and Bioeconomics III. DGS BIOECONOMY 2016 2015. Springer Proceedings in Mathematics & Statistics, vol 224. Springer, Cham. https://doi.org/10.1007/978-3-319-74086-7_20

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