The relevance retail banks give to social class in the provision of financial services : the Maltese context

Abstract

The purpose of this exploratory study is to identify whether retail banks in Malta offer products and services which cater for all social classes. Methodology - The research method is made up of both secondary and primary data. Firstly, existing literature was researched in order to solidify the concept being studied throughout this dissertation. Furthermore, in-depth interviews with representatives from the four most prominent retail banks in Malta were carried out in order to amass primary data. Findings - The main findings show that retail banks within Malta offer basic payment accounts which are easily accessible by everyone. This is also the case for Malta Government Stocks and Term Deposits. On the other hand, rigid assessment is carried in order to grant loans to individuals, making it easier for people within upper classes to obtain funds through loans, rather than the lower classes who presumably are the ones who need funding most. Research Limitations - This research is an investigative study which attempts to give an overview of the accessibility of financial services to personal customers within Malta. Hence, it would be beneficial if additional research is carried out in order to corroborate or contradict the findings of this study. This is imperative since the data collection method chosen may have fabricated results which are influenced by the respondents' opinions. This study provides a benchmark to which retail banks can compare their own position in relation to the other retail banks within the Maltese market. It provides competent authorities with an overview of whether retail banks within Malta provide services to everyone and whether there are people within Malta in this day and age who are still unbanked due to existing barriers or unsuitable products. Originality/Value - As far as the researcher is concerned there are no similar studies conducted in Malta. This study therefore presents original findings which were not previously evident in Malta. Additionally, being an exploratory study, it provides a solid base for further studies with regard to this research topic.