Josefa C. Dueñas (Author)
Abstract
Financial Literacy plays a vital role for clients’ banking behavior and bank preference. This study examines the financial literacy of Roxas City banking clients, their awareness and use of banking services, and the factors they consider when choosing their banks. This survey- correlational research aimed to determine the level of financial literacy, identify the commonly used banking services and bank preferences of bank clients in Roxas City. The participants of this study were 396 out of 37,500 bank clients in Roxas City. The data were collected using three (3) survey instruments: the 10-item Financial Literacy Questionnaire to determine the level of financial literacy of bank clients in Roxas City, the 10-item Banking Services Questionnaire to identify the various banking services availed by bank clients in Roxas City, and the 10-item Bank Preferences Questionnaire to determine the criteria preferences of Roxas City bank clients that they consider important when choosing a bank. Before utilizing it, the questionnaires underwent content validation by a panel of members. After the validation, it was pilot tested to thirty (30) clients from various banks in Roxas City, who were not participants in this study. The result of the pilot testing was used in determining the computer-processed reliability and construct validity of the instrument using the Statistical Package for Social Science (SPSS) software. The independent variable in this study is the financial literacy while the dependent variables were the banking services and bank preferences. The statistical tools used in data analyses were the mean, standard deviation, and Pearson r. All inferential test was set at .05 alpha level. Based on the results, the major findings of the study were the following: The level of financial literacy of clients in Roxas City was “high”. On the other hand, the level of banking services usage was “moderate”. Results showed the level of bank preference was also “high”. There was a significant relationship between the levels of financial literacy, banking services, and bank preferences among clients in Roxas City.
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Keywords: Financial Literacy, Banking, Finance