Journal Press India®

Perception of Banking Products Among People Evidence from Bhutan

Vol 21 , Issue 1 , January - June 2020 | Pages: 13-21 | Research Paper  

https://doi.org/10.51768/dbr.v21i1.211202012


Author Details ( * ) denotes Corresponding author

1. * Purna Prasad Sharma, Assistant Professor, Gedu College of Business Studies, Royal University of Bhutan, Bhutan (purnasharma1512@gmail.com)
2. Shad Ahmad Khan, Assistant Professor, College of Business, University of Buraimi, Oman
3. Prabha Thoudam, Senior Faculty, College of Business,, University of Buraimi, Oman

Purpose: The objective of the present research is to unveil the perception degree of banking products among citizens of Bhutan. It intends to derive the current scenario of possessing knowledge of various banking products among Bhutanese population vis-à-vis disseminating the research outcome to different stakeholders concerned.

Design/Methodology/Approach: The research is exclusively grounded on primary data gathered with the help of a structured questionnaire. However, a few secondary sources were also consulted to find out the direction of the study. Scheduling method was used to collect all primary data, considering the fact of lower education level of most of the respondents (below class X) and technical language of the questionnaire. Sample data were collected from 371 respondents from four different Gewogs (blocks) that is Chapcha, Bongo, Darla, and Samphelling of Chukha Dzongkhag (district). The data were analysed based on gender and education level of the respondents towards perception of banking products. Student’s t-test and ANOVA were used to analyse the research data.

Findings: The inferences drawn from the study reveal the current scenario of perception level of banking services among sample respondents. The results depict satisfactory level of financial literacy and awareness of banking products among majority of the sample respondents. However, their understanding level about the same was found quite low.

Research Limitations: The study drew conclusion based on four Gewogs of Chukha district. Hence, the findings of this study may not be generalised for the entire nation. Most of the respondents in this study were either from no formal education or from low education level. Therefore, there may be variations in their responses.

Practical Implications: As the primary aim of this research is to find out the perception of banking services/products among Bhutanese, the inferences drawn from here are expected to benefit bankers, respective heads of the blocks, government, and policy makers. Besides, the research findings may be important for practice, theory, and subsequent research including that of colleges and universities.

Originality/Value: This research is grounded on the data collected from primary sources. The findings have been supported by various secondary sources available, especially in the Bhutanese context.

Keywords

Perception, Financial products, Financial institutions, Bhutan.

  1. Aizcorbe, A. M., Kennickell, A. B., & Moore, K. B. (2003). Recent changes in U.S. family finances: Evidence from the 1998 and 2001 Survey of Consumer Finance. Federal Reserve Bulletin, 89(1), 1-32.
  2. Atkinson, A., Messy F. A., Rabinovich, L., & Yoong, J. (2015). Financial education for long-term savings and investments: Review of research and literature. Working Paper on Finance, Insurance and Private Pensions, OECD, Paris. Retrieved from https://ideas.repec.org/p/oec/dafaad/39-en.html, Accessed on January 10, 2020.
  3. Beck, T., Asli D., Kunt, C., & Peria, M. S. M. (2007). Reaching out: Access to and use of banking services across countries. Journal of Financial Economics, 85(2), 234-66.
  4. Behrman, J. R., Mitchell, O. S., Soo, C. K., & Bravo, D. (2012). How financial literacy affects household wealth accumulation? American Economic Review Papers and Proceedings, 102(3), 300-304.
  5. Bhagat, K. J., & Shinde, P. M. (2015). Study of awareness of banking skills among the degree students in Mumbai city. Tactful Management Research Journal, 7(IV), 57-61. 
  6. Bucciol, A., & Veronesi, M. (2014). Teaching children to save and lifetime savings: What is the best strategy? Journal of Economics Psychology, 45, 1-17. 
  7. Cole, S., Sampson, T., & Zia, B. (2011). Prices or knowledge? What drives demand for financial services in emerging markets? Journal of Finance, 66(6), 1933-1967. 
  8. Danes, S. M., Rodriguez, M. C., & Brewton, K. E. (2013). Learning context when studying financial planning in high schools: Nesting of student, teacher, and classroom characteristics. Journal of Financial Counselling and Planning, 24(2), 20-36.
  9. Dorji, T. (2017). Central Bank calls for enhanced financial inclusion. Retrieved from http://www.kuenselonline.com/central-bank-calls-for-enhanced-financial-inclusion/, Accessed on November 05, 2020.
  10. Erner, C., Goedde-Menke, M., & Oberste, M. (2016). Financial literacy of high school students: Evidence from Germany. Journal of Economic Education, 47(2), 95-105.
  11. FEC. (2018). Financial literacy definition. Retrieved from https://www.financialedu catorscouncil.org/financial-literacy-definition/, Accessed on November 14, 2019.
  12. Jarvis, P. (2002). Practice-based and problem-based learning. In: Jarvis P (ed.) The Theory and Practice of Teaching. Sterling, VA: Stylus Publishing, pp. 123-131.
  13. Johnson, E., & Sherraden, M. S. (2007). From financial literacy to financial capability among youth. Journal of Sociology and Social Welfare, 34(3), 119-145.
  14. Klapper, L., & Panos, G. A. (2011). Financial literacy and retirement planning: The Russian case. Journal of Pension Economics and Finance, 10(4), 599-618.
  15. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.
  16. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy and planning: Implications for retirement wellbeing. Cambridge, MA: National Bureau of Economic Research.
  17. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. 
  18. Mandell, L. (2009). The impact of financial education in high school and college on financial literacy and subsequent financial decision making. Presented at the American Economic Association Meetings San Francisco, CA. Retrieved from http://citeseerx.ist.ps u.edu/v iewdoc/download;jsessionid=817111042A17D173B8CB5FA55F1B451C?doi= 10.1.1.208.8619&rep=rep1&type=pdf, Accessed on November 12, 2019.
  19. Nadeem, M., Ahmad, R., Batool, S. R., Ahmad, A., & Shafique, M. N. (2015). Awareness of electronic banking system among students: Evidence from Karachi, Pakistan. Singaporean Journal of Business Economics and Management Studies, 3(12), 34-42.
  20. NFLS. (2018). National financial literacy strategy 2018-2023. Retrieved from https://www.rma.org.bt/RMA%20Publication/papers/National%20Financial%20Literacy%20Strategy%202018-2023.pdf, Accessed on November 10, 2019.
  21. Quraisha, J. B. (2019). Stripped wallets, ripped hearts victims of financial fraud: An analysis beyond financial fraud. International Journal of Social Sciences, 4(3), 1101-1112.
  22. Raihanath, M. P., & Pavithran, K. B. (2014). Role of commercial banks in the financial inclusion programme. Journal of Business Management & Social Sciences Research, 3(5), 75-81.
  23. Remund, D. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. The Journal of Consumer Affairs, 44(2), 276-295.
  24. Suryani, T., & Lindiawati, I. R. (2015). The challenge of financial inclusion for small and micro enterprises in Indonesia. International Journal of Social Sciences, 1(1), 1076–1087.
  25. UNCDF. (2014). United Nations capital development fund report. Retrieved from https://www.uncdf.org/article/834/annual-report-2014, Accessed on September 12, 2019.
  26. Van, R. M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472.
  27. Waihenya, H. (2012). The effect of agent banking on financial inclusion in Kenya. (Unpublished Master‘s project). Kenya: University of Nairobi. Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/96974/HARUN_MWANGI_WAIHENYA_MBA_2012.pdf?sequence=1, Accessed on October 12, 2020.
Abstract Views: 7
PDF Views: 285

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.