Aboriginal Fringe Finance Use and Financial Capabilities: Survey Evidence from a Canadian City

Abstract

This exploratory research examines survey data collected in the Canadian city of Kamloops, British Columbia on banking habits and attitudes, socio-economic characteristics, and financial capability levels of Aboriginal and non-Aboriginal fringe finance users. The theoretical framework supporting the analysis is grounded in institutional theories of financial exclusion contending that culture and history are relevant. The results suggest that Aboriginal fringe finance users have different characteristics, financial experiences and levels of financial capability than their non-Aboriginal counterparts. Aboriginal fringe finance users have lower levels of financial capability as assessed with an objective quiz. The results are expected to be relevant for policy makers attempting to reduce financial exclusion and increase well-being for Canada's Aboriginal population as well as for other countries with Aboriginal populations, such as Australia and New Zealand.