Consumer Vulnerability in Financial Services Markets: Some Perspectives From Developing Countries

Introduction

The purpose of this chapter is to advance the knowledge about vulnerable consumers, especially, in the context of developing countries. The chapter, therefore, maps out the various forms of vulnerabilities in financial markets in developing countries. Thereafter, a conceptual framework defining consumer vulnerability is presented. In conclusion, the chapter proposes some strategies to alleviate the challenges of consumer vulnerability. To advance these arguments, the chapter discusses the question of consumer vulnerability in the financial services markets in developing countries using South Africa as a case study.

The remainder of the chapter is structured as follows. In the next section the importance of consumer vulnerability as an area of study is discussed. Thereafter, the nature of services and services marketing are discussed. Following that, the makeup of the financial services sector is described. This is then followed by defining consumer vulnerability. Lastly, the concluding section discusses some strategies for arresting vulnerability in the financial services.