CHAPTER I-5 edited final.docx

8/19/2019 CHAPTER I-5 edited final.docx

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CHAPTER I

Problem and its Background

Introduction

Nowadays we can see lots of banks in our country, whether in rural and urban areas.

Those banking institution provide services like saving, credit, payment and insurance to the

people. But many people cannot avail and accessed those financial services. That is why Banko

Sentral ng Pilipinas (BSP makes an advocacy to improved !inancial "iteracy and increased

!inancial #nclusion in our country (Tetangco $%&'.

Bangko Sentral ng Pilipinas (BSP monitored banking institutions based on the research

conducted in $%&$ there are '.) million accounts and it rose ).$ million, so as of *une $%&+,

there are +. million of accounts in our country, which made Philippines one of the country-s

best in promoting financial inclusion (Tetangco, $%&+. That is why BSP continued to implement

the financial inclusion agenda (#nclusive !inance dvocacy Staff, $%&'.

!inancial #nclusion is the access and availability of financial products and services to

all segments of society (/angara0an, $%%1. So, even those who are earning minimum waged can

have access to any financial services offered by those banking institution. #t generally helps our

economy, for it decreased poverty and developed economic growth (Tetangco, $%&'.

!inancial 2ducation is one of the keys to improved financial literacy. That is why BSP


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$

wanted all people to be financially educated for them to make their own decision in managing

their finances and to secure their family financial needs (Tetangco, $%&'.

The Bangko Sentral ng Pilipinas implemented 2conomic and !inancial "earning

Program (2!"P, to promote awareness and understanding about financial issues and financial

decisions. The 2!"P consists of learning sessions for their specific audience like elementary,

high school and college level also those employed person (#nclusive !inance dvocacy Staff,

$%&'

The researchers come up to an idea to know what is relationship of the state of

Financial Inclusion and the perceived 3uality of life here in 4arikina 5ity and to know how

affordable financial services changed the 3uality of life of 4arikina /esidents.

Background of the study

financial inclusion was the accessed and availability of financial services that gives to

everyone at an affordable cost especially to the financially e6cluded. ccessibility was available

and supported through what the clients know about financial services. The main goal of financial

inclusion was to improve the availability of financial services to the financially e6cluded.

!inancial inclusion carried the opportunity to improve the welfare of everyone especially the

poor people (#nclusive !inance dvocacy Staff, $%&'.

The Bangko Sentral ng Pilipinas recogni7ed its ob0ectives to pursue the financial

inclusion and to promote the efficiency and stability of financial system. nd BSP had advocacy

to promote the financial inclusion to have accessed and used financial services. So Banko Sentral

ng Pilipinas implemented financial education for people to become aware about financial literacy


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'

(#nclusive !inance dvocacy Staff, $%&'.

Theoretical Framework

There are some reasons why financial inclusion is needed. 8ne is the high population of

countries like Nigeria. Because of the number of people, the financial services were not made

available to each of them. So despite of being famous as one of the successful banking sector

they cannot be call it as achievement because of the lacked of access to formal financial services

(ina and 8luyumbo.

The /eserved Bank of #ndia (/B#9s reported and identify t the reason why people were

in financial e6clusion and these are lacked of opportunities and access to finance financial

illiteracy, poor performance and negative approached of the banks. So :r. 4. 4. ;andhi said

that the opening of bank account is the target of !inancial #nclusion (;andhi, $%&'.


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+

Concetual Framework

e

<

I!P"T

&. Socio=demographic

profilea ge

b 5ivil Status

c ;ender d 2mployment

Status

e Personal #ncomef 2ducational

Background

$. !inancial products andservices offered by

institutions.

'. State of financial

inclusion as determined by>

a. access

b. usage

c. 3uality

d. welfare

PR#CE$$

• ?uestionnaire

• Survey

#"TP"T

/elationship of the

State of !inancial

#nclusion and the

Perceived ?uality of

"ife

Feedback


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Figure 1. #llustration of input, process and output of the research

!igure & showed the relationship of company profile of institutions that render financial services,

socio=demographic profile of the residents of 4arikina 5ity, financial products and services that

being offered by institutions in 4arikina 5ity and the state of financial inclusion as determined

by> access, usage, 3uality and welfare, to the state of financial inclusion in 4arikina 5ity. #t

illustrated the process included all 3uestion for the respondents of 4arikina 5ity that can availed

and cannot availed financial products and services render by institution. fter conducted the

survey, the financial inclusion will be determined and it will send a feedback to input.

$tatement of the Problem

This study aims to determine the relationship of the state of financial inclusion in the

city of 4arikina. Specifically, this study will seek to answer the following 3uestions>

& Ahat is the socio demographic profile of the residents in 4arikina 5ity

a ge

b 5ivil Status

c ;ender

d 2mployment Status

e Personal #ncome


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f 2ducational Background

$ Ahat financial products and services are being offered by these institutions in 4arikina

' Ahat is the state of financial inclusion in these institutions as determined by>

a ccess

b Csage

c ?uality

d Aelfare

Hyothesis

There is a significant relationship between the state of financial inclusion and the

perceived 3uality of life in 4arikina city.

$ignificance of the study

The results of this study will be significant to the following>

To the researchers, who will become future financer, this study will give knowledge to

their curiosity about financial inclusion.

To the respondents, in order to give them understanding why they need to have access

in financial products and services which the bank offers. lso to help them build savings, avail

credit and make investment to improve their lives.


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)

To the future researches, in a way that will serves as their reference to the study they

have conduct. The future researchers also add this study to their related literature and use as a

guide on how to do a research study, the format and how the arrangement of information is done.

To the banks, in such a way that this study will encourage the banks to provide

availability of banking and payment services with a low=cost for people to get access in financial

products and services and in business opportunity.

To P"4ar which this study will be able to add as reference in the library. P"4ar also

use this study to promote as good e6ample term paper in student.

$coe% &imitation and 'elimitation of the $tudy

This study was conducted in 4arikina 5ity. :istrict # was composed of barangays

such as Sto. NiDo, 4alanday, Barangka, San /o3ue, *esus dela peDa, TaDong, 5alumpang,

#ndustrial Ealley comple6 and Sta. 2lena. :istrict ## was composed of ) barangays such as

!ortune, Parang, 5oncepcion Cno, 5oncepcion :os, 4arikina Feights, Tumana, and Nangka,

The study was conducted for the month of *uly to ugust in the year $%&@ and was included

male and female residents of each barangay.

This study was talking about the state of financial inclusion to the residents of 4arikina

5ity who both availed and not availed financial products and services. nd it also talked about

the relationship of this study to the 3uality of life of 4arikina residents.

'efinition of terms

!or better understanding and clarification of this study, the following terms are clearly


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and operationally defined>

Access = it refers to the availability of affordable products and services that have connection

between people and the bank.

Age = it refers to the years that a person e6isted in his whole life. #t can be also referred to as

young, adult and senior.

Banking Institution( is an organi7ation or group of banks. #t is the business firms that operate

by banks. Baking institution is the number organi7ation that renders financial services.

Ci)il $tatus( refers to the status of a person in life. #t can be classified as single, married, head of

a family or widow person.

Emloyment $tatus = it refers to the employees- workG0ob where it is as part time, full time,

irregular, regular or stable 0ob. #t can be a basis of employee-s salary or wages.

Financial inclusion H is the delivery of affordable financial services to everyone especially to

those who are low income earner. #t can also in affordable cost that gives access.

Financial Performance( it is the level of performance of a business or measuring the results of a

firms operation in a specified period of time. !inancial performance also determined as good or

bad outcome of an institution that renders financial services.

Future Researchers( it refers to a person or group of person that will conduct a research about

financial inclusion or related to this topic. They are one of the significant of this study.

*ender = it is the se6ual identity of a person. #t is either girl or boyI male or female. ;ender can


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be use to categori7e something.

&ocation H is the place or area which the bank is located or being occupied. #t is the area where

the survey is being conducted.

Personal income = it is the money where regularly receive by an individual within a certain

period of time. #t is the money that an individual spend for his self. #t is either from his 0ob or in

his personal business.

+uality H it is the value of services which undertake by the banks. ?uality can be a measurement

for e6pectation and product satisfaction.

Resondents( people who have or do not have access in financial inclusion in 4arikina city.

These are the people who answered the interview 3uestions. /espondent is one of the sources of

this research.

"sage = it refers to the act of takingGusing products or services. #t is the way of utili7ing the

products and services. Csage can be presented by number of using over the total available

products to use or in a percentage form.

,elfare H is the impact or effect of products and services to the lives of respondents.

-ears of oeration H refers to the length of the business that operated. #t can also determmined if

the busiiness is successful in the past years.


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&%

CHAPTER II

RE.IE, #F RE&ATE' &ITERAT"RE

This 5hapter includes selected literature and studies both foreign and local. This

includes ideas that served as guide in working out this research work.

The $ocio('emograhic Profile

Age. #n financial inclusion $%$%, there was mapping fort the invisible marketI this was

building for a movement towards the full financial inclusion in $%$%. There was differentiating in

age in work with financial inclusion. The age range to &@=$+ recommended segmenting market

further through market researched. ge was not choosing as a dividing line but rather what the

age represented. Ahen the youth become an adult at the age of $@ he had made a ma0or choice to

changed life, they were become career oriented in reality. t the age of @ the people in this age

had a formal employment, use their money that they saved or they were relying on the non=work

related source of income. #n this demographic work discussed the need that used on approach to

financial services. Ahen the financial institutions listen to the need of clients beyond their birth


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dates, they can helped them most and we can become in a better place (;reene J Kelly, $%&'.

*ender/ Aomen had a lack of potential and confidence to manage finances. That idea

caused the limitations and restrictions of the power of women to access financial resources.

23uality among men and women was issue that we need to solve in order to promote the

empowerment of the women. Aomen were also a people who can think and decide rationally for

the plans for their life. /emember, women were the one who budgeted the money of the family

( Kunt J Klapper, $%&'.

Aomen power to access was limited not only in financial services but also in politically

and socially. Because the old culture was, women were 0ust for households. But now a day,

women can finance and has a power to accessed financial services. They can now applied

services for the financing of their business, mortgage and other property or they can apply

accounts for savings for the future used. :espite of having now gender e3uality that comes in

accessing financial services, men were still on the top user of it because women had a lack of

time to access services due to their role in households (Kunt J Klapper, $%&'.

;ender is one factor that affected measures of financial inclusion. 4ore than &.' billion

of women had no account in financial institution. Someone of their family had already accounted

with $ percent of women mentioned in not having an account but $% percent of men without

one. The gender gap of women in having saving in the past year is '+ percent compared with '1

percent globally and $ percent compared to '' percent in developing countries. nd also the

gender gap in borrowing behavior was &% percent of men compared with 1 percent of women

having borrowed from the financial institution (Kunt, Klapper J Singer, $%&'.


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Emloyment status/ People e6perienced the poverty because they are out of work

which is financially e6cluded. ;aining employment was the main source of people to improve

their lives and their choices of moving out of poverty. So, financial inclusion with employability

service can help people in possibility that moving forward in to the employment and staying in

employment.

Personal income/ ccording to Shankar ($%&' that the main reason why individual

was financially e6cluded was having low and irregular income of individual which prompt to

lacked of availability of financial products and lacked of motivation to have accounts due to

insufficiency to some money. The certain group who had lowest income cannot reach financial

services and also they need accessed to financial services.

Financial Products and $er)ices

!inancial #nstitutions were the main provider of financial services. Since there were

lacked of use of financial services because of the presence of the market failure, government

reduced the failure by establishing ade3uate regulation and policies. #t needed to ensure that

financial services can reach the people with the appropriate products and access channels.

The use of financial product helped enterprises to make decisions, compare to having

difficulties in having only one funds generated by the economic activity they were engaged with.

#nvestment needs were not necessarily to be synchroni7ed with the outflow and inflow of fund

generated from the productive process. #t may occur at time when savings were insufficient.

!inancial inclusion had an impact on productive investment because it had shown that there was

a positive relationship between the use of credit and growth of enterprises specifically the


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&'

smaller companies (5lamara,PeDa JTuesta, $%&+.

;hana provided branches of banks that included their !idelity banks to serve their

people and their valued customer but )% percent of ;hanian-s were still under banked or what we

call financially e6cluded people. That was why !idelity established financial inclusion

directorate. !idelity banks financial inclusion provided financial services to people who were

unbanked and under=banked. They needed to ensure that all the people in ;hana were financially

educated about their products, and also to ensure that those produce products improved the life of

their people. gency banking mobile, digital banking, strategic partnership and microfinance

were those services that were part of the new directorate of !idelity banks (!idelity Bank

"imited, $%&+.

$tate of Financial Inclusion

Access. Beginning in about &1% up to the present time, financial services were

continuously changed. These changes got the attention of financial and non=financial companies

to enter in financial business as having accessed to financial service from different places. The

forms of access devises, including personal computers, personal digital assistants, and televisions

with interact access and cellular phones were a way of using by individual to got accessed in

financial services (Neave, $%%. #t was the use of financial services without any hindrance. #t

was the ability to access in financial services without any condition. nd the customer or user

can applied for any financial services efficiently (Fenry, $%&%.

The Bangko Sentral ng Pilipinas (BSP reports that ').' percent of municipalities in

country still do not have accessed at the bank as of the end of $%&&. Those municipalities were


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&+

populated by more than &+ million people, which the total population constituted &@.$ percent.

8nly ). percent of total population had access to other financial services providers such as

pawnshops, money changers and remittance agents (Fabaradas J Cmali, $%&'.

"sage/ #n the year $%&', it illustrated the increasing number of deposit in bank

account by percent like in $%&$ it had an amount of +&.1 million arise to +@.+ million in the

year of $%&'. nd in terms of total value of the peso it was increased '$ percent by @.) trillion in

the year of $%&$ up to ). trillion in the year of $%&'. The growth increased from small savers,

by 1 percent from the number of deposit accounts below &@%%% from the year $%&$, it had an

amount of '&. million and it was increased from '+.& million in the year $%&'. ll of these

deposits account in bank had consisting in )@ percent also deposit in non=bank institution

increasedI it was deposit liabilities of non=stock savings and loan associations increased by $

percent from $$. billion in the year $%&$ from $'.' billion in the year of $%&'.

Then, the total number of loan portfolio increased its banking system by $) percent

from having an amount of '.'' million in $%&$ up to +.$@ trillion in $%&'. Ahile microfinance

loan of portfolio of banks with microfinance activity shows it was increased by ' percent in the

$%&$ and it had an amount of 1.+ billion and it was grew up to 1.) billion from the year of $%&'.

!rom the money accounts the number of registered grew up by '+ percent it had an amount of

&. million in the year $%&% increased the $.) million in the year of $%&'. The 2=money

account had increased by @) percent from &'1 million transactions from the year $%&' to $&)

million at the year of $%&' while the total money of 2=money grew by @1 percent $$%.@ billion in

$%&% to '+1 billion in the year of $%&' (#nclusive !inance dvocacy Staff, $%&'.

ccording to $%% 5onsumer !inance Survey (5!S, said that 1 !ilipino households


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&@

out of &% did not have a deposit account which consist of ' percent of these households said that

they do not have enough money for bank deposits. ccording to Aorld Bank data, only &%.@

percent of !ilipinos adult had a loan from a formal financial institution. Then, in $%&% Bankable

!rontier ssociates (B!, @@ percent of !ilipino adults have availed of loan and bill payment

services which they studied (Fabaradas J Cmali, $%&'.

+uality/ !inancial inclusion can be measured by 3uality. ?uality shows the e6perienced

of the consumer to the financial products and services. #t evaluated the relationship between the

financial service providers and the consumer which measured the level of understanding of the

consumers and their suggestion regarding to these products that accessible to them (Fannig J

*ansen, $%&%.

,elfare. Bangko Sentral ng Pilipinas (BSP searched for actions to improve the

consumer protection policies and programs. #n $%&', the BSP set a step to assessed the

effectiveness of its initiative and improve consumer protection, regulations and activities. So the

BSP determined whether the regulatory, institutional system and practices results an effective

consumer protection (#nclusive !inance dvocacy Staff, $%&'.

$ynthesis of Re)iew related &iterature

Based on the demand in the Statement of the Problem, the researchers wanted to give

interconnected issues and provide different reactions that according to the e6perts which the

researchers have gathered that have enumerated in the Statement of the Problem. The residents as

the researcher respondents in this research study were classified according to their socio demo=

graphic profile which consists of age, gender, employment status, personal income, district and


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barangay. This socio demographic profile used to collect information that might help to produced

general characteristics. Those residents do not have accessed in financial services and cannot

afford to avail because of many charges that affected their decisions. Those residents, who know

the financial products and services which offered by the banks and can availed, had a big role in

shaping their 3uality of life towards to the formal financial institution offering. Particularly, in

using financial products or services it creates a wide range of awareness to spread to all the target

users the information intended for them.

The strong point of this study, it enables to discuss the related topics which give

understanding and clarification to the sub0ect of this e6ploration. "ike what had been discussed

in having access to the bank give a big role in life of those residents that persuade them to create

any movement in employing their life to formal financial institutions. #t created the research

useful and relevance to identify the relationship of the state of financial inclusion and perceived

3uality of life in terms of access, usage, 3uality and welfare. #t encouraged those residents to

have account for their own or family to secure their lives and the opportunity to economic

condition. ll of these were possible for have a tool to be used, that is financial products and

services to influence the residents what right products and services they can avail.

The weakness that the researchers noticed in this sub0ect matter is that some people do

not have money to use or have a little money to put. Some of them do not have interest, lacked of

knowledge about financial product and services offered by banks, and some of them 0ust do not

want to avail. Some were not interested to open or to have a savings account because it was

hassle for them to save their money to bank than to have a piggy bank.

To the ne6t researchers who conducted a study which is related to this research topic,


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the researchers of this study suggest to gather more related literature that discusses the

relationship of the state of financial inclusion and the perceived 3uality of life using any media

platforms such as internet, book, articles and television that were very useful to inform residents

about any financial product and services of financial providers. ll literature about financial

inclusion surely e6plained that the financial inclusion were really useful to the lives of the people

particularly in the low=income segments of society.

CHAPTER III

0ETH#'#*-

This chapter talked about the procedures that involved in conducting this study. #t also

talked about the research design, research locale, data instruments, data gathering procedures,

data analysis, threats to validity and ethical consideration. ccording to !urchan ($%&%, the

writing purpose of research methodology was to demonstrate to the reader that as a researcher

you know in detail how to conduct your proposed research and the research method was logical,

applicable, valid and reliable.

Research &ocale

Based on the ?uick 4arikina !acts ($%&$, 4arikina city was one of the &' cities and +

municipalities comprising 4etro 4anila. 4arikina city was appro6imately $& kilometers away

from 4anila. 8n the east part was bounded by Sierra 4adre mountains and ?ue7on cityI on the


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&1

north part was San 4ateoI and on the south part was bounded by Pasig city and the municipality

of 5ainta. The 5ity was composed of two congressional :istricts with & barangays.

Poulation $amling or Resondents of the $tudy

#n this section it talked about the population needed in conducting the study. #t

discussed about the population where the respondents situated or the geographical location which

was 4arikina city, and about the sample and sample si7e of this study. #n this study conducted it

discussed the sampling techni3ues and the sample distribution.

Poulation/ #t is the total number of people you want to study or conducting a research.

This people are from a large group of people who chose by the researcher to represent for the all

group. This number of people that represent for their group is called sample (Lount, $%%.

$amle and samle si1e/ The sample of this study was those people who availed and

cannot availed financial services living in :istrict # and ## in 4arikina 5ity. #t consist of &

barangaysI it includes, Barangka, #ndustrial Ealley 5omple6, *esus :ela PeDa, Kalumpang,

4alanday, San /o3ue, Sta.2lena, Sto.NiDo, TaDong, !ortune, Parang, 5oncepcion Cno,

5oncepcion :os, 4arikina Feights, Tumana and Nangka.

Sampling is the process or techni3ues of selecting a certain group of sub0ects from the

sample which is part of the study of the researchers in such a way that those individual represent

as the group (4ugo, $%%$. Those individuals who have selected from contributed as a portion of

the group in which the researchers focused on. Sample is a certain group of population that the

information is a thing (Sirug, $%&&. Sample is also a representative part among the group of

population and the target in conducting a survey of the researchers (4ugo, $%%$.


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The formula that the researchers used in computing the sample si7e was the Slovin-s

formula n M NG&Ne$, to calculated and to get the suitable sample si7e from a one population

(ndale, $%&$. The overall population of household in, 4arikina 5ity has a total of &%1,@1.

4arginal error determined how the survey or result of e6periment is reliable. Ahen the margin of

error is higher, there are tendency that the result of survey is less likely through. #t e6pressed as a

percentage and as absolute number. Sometimes it is in capable to take care the error of the survey

3uestions is in ade3uately or the respondent did not answering correctly (5alla, $%%.

Sample si7e is defined as the number of members in a sample. This is the number of

observation in a sample to collect a 3uantitative data (Aeisstein, $%&@.

$amling techni2ues/ This research study used Non=random sampling where sample

are pick out in an intentional aspect with little or no purpose to randomi7ationI it is also known

as Non=Probability sampling (Sirug, $%&&, specifically, purposive sampling which is defined as

the selecting of sample based on the knowledge of the researchers. #t may be useful if the

researchers want to study in small set of population, because the members are easily identified

but the enumeration of all is impossible ("atham, $%%). #t is in the form of non=probability

sampling which the researchers make a decision about the individuals who would be included in

the sample. The researchers make a decision about the respondents who could contribute to the

study (8liver, $%%.

The respondent of the research was the residents of :istrict # and :istrict ## of 4arikina

5ity, who both availed and not availed financial products and services. Those are the

3ualifications re3uired by the researchers as a sub0ect for this study to be chosen as a respondent.


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$%

$amle distribution/ #n this section of study, the table indicated in table & shows the

sample distribution of :istrict # and :istrict ## in 4arikina 5ity. #n the first column is stated the

& barangays in :istrict # and :istrict ## of 4arikina 5ity, which are the sample of this studyI on

the ne6t column is the number of households of each barangays with a total of &%1,@1. #t

followed the percentage of the number of households that the results used the formula which

under table &, the table covering a total of &%%O. "astly, the sample si7e shows of how many

respondents that the researchers will be going to survey, based on the percentage of each number

of households in :istrict # and :istrict ## of 4arikina 5ity with a total of '1 respondents.

Table &.

Tabular Presentation of the Sample Distribution of the Household-Respondents

:istrict # and ## of

4arikina 5ity

No. of Fouseholds Percentage Sample Si7e

('1

Kalumpang +,1'1 +.++O &1

Barangka ,+&1 @.1O $'

TaDong $,@ $.)@O &&

*esus dela PeDa $,+' $.&)O &&

#ndustrial Ealley

5omple6

+,$@ '.+O &

San /o3ue @,&1 +.)O &

Sta. 2lena &,)&$ &.@)O

Sto. NiDo 1,)% ).O '$

4alanday &&,) &%.O ++

5oncepcion Cno &$,%$& &&.%$O ++

4arikina Feights 1,&% ).++O '%


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$&

Parang &&,1%1 &%.1$O +'

Nangka ),1%$ ).&O $1

5oncepcion :os @,% @.@%O $%

!ortune ),&)' .&@O $

Tumana ),')% .)O $)

Total &%1,@1 &%%O '1

Source> 4arikina 5ity :emography $%&$

The formula used to get the percentage of each barangay is PMFGN 6 &%%O, where P is

percentage, F is the number of households for each barangays and N is for the total number of

households of those barangays. The researchers simply divide each number of households to the

total number of households and then it was multiplied by &%%O, to get the percentage of each

barangays. The calculation of percentage was necessity in order for the researchers to know how

many respondents for each barangays were going to be surveyed.

Research 'esign.

#t was the key to have a good strategy and a better result in conducting a research.

/esearch design is used in research study to constitute the collection, measurement and analysis

of data (5ooper, $%&&.

This study used ?uantitative method particularly Survey method to e6amine the

relationship of the state of financial inclusion and the perceived 3uality of life. The researchers

used Survey method to gathered data from the respondents.

?uantitative method is defined as the collection of data in numerical method or based

on mathematical method. #t e6plained particular phenomena or 3uestions which result in


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$$

numerical form or answered by 3uantitative method. #n doing a 3uantitative research it uses

statistics to analy7ed data that being collected. ?uantitative method is used to pro0ect a larger

population about the research process. #t can be done by conducting a survey to collect and

analy7ed the data. The results that are found among the sample are interpreted to determine the

probability conclusion and it can be replicate in a larger population (Borrego J :ouglas, $%%$.

Survey is an activity that gathers information in an organi7ed way about the interest of

a particular population using well defined concept methods and procedures to make a useful

summary for, it usually begin with the need of information where there is no data e6ist. Survey

users can be powerful because it may be the only way to gather information for ongoing research

(Statistic in 5anada, $%&%.

Research instrument

The researchers used Survey ?uestionnaire as the data instrument of this study. #t

included in choosing an unbiased sample representative of the sub0ect from the group that a

person wish to study. The survey was done by face=to=face interview, through telephone

interviews, through e=mail and using 3uestionnaire (Neville, $%%).

The advantage of Survey ?uestionnaire is promotes a more valid and reliable results in

the group of population that is covered in the research. The e6ertions of effort and money

become worthy at the same time that gives more reliable information which is that the

respondents, as they answered the 3uestionnaire willingly. :isadvantage is occurring in the

confusedness of the respondents based on their understanding which is differ from the

researchers 3uestion that make a big mistake. nd the impersonal surveying lead to


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$'

misunderstanding between the researcher and respondent that is resulted to unreliable

information of data (Singh, $%%.

'esign of the instrument/ The survey 3uestionnaire of this study composed of four

parts, first was about the socio demographic profile of respondent, specially, residents who are

living in 4arikina, particularly, in district # and ## which includes of age, gender, civil status,

employment status, personal income, educational background, district and barangay. The

researchers composed sub=3uestions on this part that under in socio demographic profile on the

of the problem. The second part was focus on about the financial products and services which

have only one 3uestion and this 3uestion has a sub=3uestion. Then the third part was composed

of eleven 3uestions that talks about the state of financial inclusion. !inally, the last part was all

about the 3uality of life which composed of eight 3uestions.

The researchers used "ikert Scale as measuring tool in answering the 3uestions that

indicated in this survey 3uestionnaire of this study. The number & represents e6tremely, number $

means very much, number ' stands for a moderate amount, number + is a little and number @

represents not at all. "ikert scale is a five or more scale type item to be followed by several levels

of agreements (Lount, $%%.

Face )alidity/ Ealidity is interest with the purpose of research components (:rost,

$%&&. !ace validity is the degree of test that the respondents e6amine the content of a test which

is important in the conte6t (Folden, $%&%. #t is also a 0udgment through a construct validity

which regularly seen (:rost, $%&&. !ace validity refers to the awareness of the test in its items

which appear to the persons who answering the test (Folden, $%&%.


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$+

The researcher-s survey 3uestionnaire was validated by their research adviser, which

composed four parts of 3uestion.

'ata gathering rocedure

s proposed by 4adhu Bala, :ata ;athering ProceduresG :ata 5ollection Procedure

are one of the most important in research. The research 3uestions has been made and needed to

answer for the completion of a research (Bala, $%%@.

Figure 2.Illustration of data gathering procedure

The researchers started the process of collecting data by conducting a survey from the

respondents, who are individually, availed or cannot availed financial products and services that

are residents of 4arikina 5ity. #n this study, the researchers constructed survey 3uestionnaire,

which was the data instrument that used to gather information from the respondents. !irst, the

researchers held a group discussion regarding the division of tasks and then it decided that all of

them were going to construct first @% 3uestions in having a relation with the statement of the

problem and conceptual framework of this study. Secondly, those @% 3uestions, was written in a

scratch paper and one of the researchers was assigned to typed it. fter encoding the @%

3uestions the researchers were printed it from the computer shop for the hard copy. The

Ealidated 5ategori7ed

?uestions

5onstructed #tems for Survey ?uestionnaires

/e3uested "etter of Permission for

Aaited the

/espondents to!inish

5onducted the

ctual Survey


25/61

$@

researchers go to their Thesis Proposal dviser for corrections and clarifications about the

construction of 3uestions.

fter the construction of survey 3uestionnaire, the researchers conducted a survey to

the target respondents who are located in 4arikina 5ity with a total of &%1,@1 households.

Faving a '1 sample si7e and the formula that used was the Slovin-s formula. The researchers

allocated the '1 survey 3uestionnaire in the respondents of & barangays in :istrict # and

:istrict ## of 4arikina 5ity. !or the target respondents in 4arikina, the researchers distributed

the $' copies of survey 3uestionnaire in barangay BarangkaI ++ copies in barangay 4alandayI &&

copies in barangay *esus dela peDaI &1 copies in barangay KalumpangI copies in barangay Sta.

2lenaI && copies in barangay TaDongI & copies in barangay San /o3ueI '$ copies in barangay

Sto. NiDo, & copies in barangay #ndustrial Ealley 5omple6, ++ copies in barangay 5oncepcion

Cno, '% copies in barangay 4arikina Feights, +' copies in barangay Parang, $1 copies in

barangay Nangka, $% copies in barangay 5oncepcion :os, $ copies in barangay !ortune and $)

copies in barangay Tumana with a total of '1 survey 3uestionnaire.

The researchers conducted the said survey to the households last on *uly to ugust

$%&@, Saturdays and Sundays, starting >%% in the morning up to @>%% in the afternoon. The

3uestionnaire distributed &=$ days for every barangays in 4arikina 5ity. The researchers divided

into two groups for faster survey, the first group distributed the survey 3uestionnaires in :istrict #

and the second group distributed the survey 3uestionnaire in :istrict ##. The researchers had

patiently waited the 3uestionnaire until the respondents finish answering that 3uestionnaire

before going to another household respondent of survey.

!on(resonse issues. #t is defined as the failure to collect data from a sample unit of a


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$

target population. #t may happen if the sample unit is refuses to answer some of the 3uestions in

3uestionnaire. The 3uestions may be sensitive or it is misunderstood by the respondents. The

result of the data that collected in a survey is an indication of how reliable the data are (8kafor,

$%&%.

The 3uestionnaire has a incomplete answer was treated as invalid and not considered as

part of the survey, but in order to make sure that the 3uestionnaire was completely answered, the

researcher check it first before leaving the households. #f the survey 3uestionnaire was

incompletely answered, the researchers re3uest to the respondents t to answer the 3uestions that

they leaved.

$tatistical Treatment of 'ata

'ata Analysis/ #t is the crucial step in survey because the 3uality of the analysis can

affect the whole survey. summari7ing and interpreting of data meaning that gives clear

interpretation of answer to the 3uestions. The result of the survey should be related to the

3uestion in the statement of the problem (Statistic in 5anada, $%&%.

Cnder of this section talked about the statistical tools that used in this study. There are

two types of Statistical treatment namelyI :escriptive and #nferential Statistical tools. The

researchers used this method to analy7e each 3uestion written in the Statement of the Problem of

this study. :escriptive Statistic is the overall methods and treatments engaged in the collection

which the purpose is to give information about a certain group of data. The #nferential Statistic is

the techni3ue from sample analysis to interpretation about the population which also known as

statistical inference or inductive statistics (Sirug, $%&&. lso inferential statistics aim to go


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$)

beyond the data and make e6planation about the limits of population (Burke, $%&'.

Analysis of the statement of the roblem/ #n presenting% interpreting and analy7ing

the data gathered by the researchers, the use of statistical tools become essential>

To answer the part # 3uestions, which the socio=demographic profile of respondents,

the researchers used fre3uency and percentage distribution to get the number of observations in

each classes where f M number of respondents and n M total number of respondents. The

researchers simply divide the number of respondents to the total number of respondents and

multiply it by &%% percent.

P M ! G n 6 &%%

The researchers used the nominal scale to compute its mean to solve the 3uestions in

part #. Nominal scale is the classes or categories which differentiate for the purpose of nearly

classification and identification. The used of mean is applicable to determined a central tendency

of interval or ratio data. #t is only the usual measure to know a certain value this is called mean.

6 M 6 G n

The formula of mean where 6 is the sum of all Qs, 6 is the sample mean, 6 is the

value of any particular observations or measurement and is the total number of values in the

sample. To get the mean with the used of this formula, the sum of 6 is divided by the total

number of values in the sample.

Standard :eviation refers to a statistical term that gives a good intimation to the data

of measures how values are disassemble from the average distance for each element from the


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$1

mean. Standard :eviation also defines as calculated being a s3uare root of a variance. Standard

:eviation formula>

S:√

n6$ −¿

(6$Gn(n=&

Ahere 6 is the sum of all QS, and n is the total number of values in the sample. To

compute standard deviation, the s3uare root of total numbers of values multiplied by the sum of

all QS s3uared, divided by the total number of values, multiplied by total number of values minus

one (Sirug, $%&&.

To answer a part ### 3uestion which is the state of financial inclusion, the researchers

used nominal to compute its mean and ordinal to compute its weighted mean. Aeighted mean is

useful to measure the response of the respondents from survey 3uestions where f M total response

in each 3uestion, 6 M likert scale and nM total number of respondents. The formula is multiplying

the total response to the likert scale then divided by the total number of respondents (Sirug,

$%&&.

X =̅ f 1x1 + f 2x2 + f 3x3

n

"astly, to answer the part #E 3uestion which is 3uality of life, the researchers used also

the same statistical tool from above.

Hyothesis Testing/ #t is defined as the statistical method that is used in making

decisions on statistical basis by using e6perimental data. This hypothesis testing is an assumption

that the population they make becomes the parameter. There are two procedures in hypothesis

testing, first is the Null hypothesis, it shows that there is no significant difference and assumes


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$

that the observation happens by chance factor. The second one is the lternative hypothesis, it

shows that there is a significant difference between the two variables and the results want to

prove by the researchers (Sirug, $%&&.

Threats to .alidity. There is much more evidence of threats to validity than sources of

validity. Threats to validity is defines as the factors that interfere with the interpretation of data.

ccording to 4essick, there are two ma0or sources of validity threats. The construct under

representation pertains to the under sampling or bias sampling while the construct irrelevant

variance pertains to systematic error. But they both reduce the ability to interpret the instrument

that decreases evidence for validity (:owning J Ludkowsky, $%%.

The internal validity is referred to as control. 5ontrol variable or constant is added to

sets of substitution for development variable. 4ost common set of variable consists of

dependent, independent and intervening variables. 26ternal validity is the condition that permits

the interference of the sample findings to the population from which the sample are selected

(Singh J Cpadhya, $%%1.

Ethical Consideration

The consideration of ethics in research showed understands that basic ethical research

and how it affects the research. #t is most important if the research involved interaction to

community who serves as participants or what we call respondents. There are some possibility

that may harm the interaction between the researchers and the respondents. #t includes

psychological harm, those that would offend the respondents, financial harm, like these unethical

behavior that provides management information on individual employees that could cause them


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'%

to be fired and those sensitive information of firm competitor that result to the financial harm of

organi7ation. "astly, the social harm where in it affects the person to the things that is

confidential. nd it is the researchers- responsibility to consider which of the three harms could

occur. 2thics are not trying to change researcher values, but it only wanted researchers to be

aware of potential ethics issues that would occur in the research (Polonski, $%%$.

2thical consideration incorporates policy, codes and principals are important but they

do not cover every situation sometimes they conflict and re3uired interpretation. That-s why

researcher should learn to analy7e and interpret the data to make decision about the situation

(/esnik, $%&&.


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'&

CHAPTER I.

PRE$E!TATI#!% A!A&-$I$ A!' I!TERPRETATI#! #F 'ATA

The data gathered from the respondents of 4arikina 5ity in :istrict # and :istrict ## will

be discuss in this chapter and the relationship of the state of financial inclusion and perceived

3uality of life. #n this chapter, the '1 respondents answers to the 3uestionnaires and the result

will be discuss. The researchers assure to the respondents that the results will be used for the

purpose of the research study and the identities will be strictly confidential. #t is assumed that the

characteristics of the respondents will influence their behavior and answer to the survey

3uestions. The ob0ective of this study is to determine the relationship of the state of financial

inclusion and the perceived 3uality of life in 4arikina 5ity.

Table $

Freuenc! and Percentage Distributions of the Respondents "ccording to "ge

Fre2uency Percent

.alid below $% years old +) &&.1

between $& to '% years old &%) $.

between '& to +% years old &&% $).

between +& to @% years old ) &.&

between @& to % years old +) &&.1


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'$

& years old and above && $.1

Total '1 &%%.%

The table shows the age of '1 respondents which is e3uivalent to &%% percent. The highest

age bracket is in the age of '&=+% which is e3uivalent to $). percent, ne6t would be the age

bracket of $&='% that has a percentage of $., followed by the age bracket of +&=@% that has &.&

percent, and then the ages below $% and @&=% e3uivalent to &&.1 percent, and the lowest age

bracket would be at the age of & above with the percentage of $.1 of all respondents.

Table '

Freuenc! and Percentage Distributions of the Respondents "ccording to #ender

Fre2uency Percent

.alid 4ale &1@ +.@

!emale $&' @'.@

Total '1 &%%.%

This represents the gender of the respondents, which is the male and female. The female

has the highest percentage of @'.@, and male has a +.@ percent of all the total respondents.

Table +

Freuenc! and Percentage Distributions of the Respondents "ccording to $onthl! Income

Fre2uency Percent

.alid below Php @%%% $& @.'

Php @%%%=Php &%%%% $+.

Php &%%%%=Php $%%%% $%' @&.%

Php $%%%%=Php @%%%% ) &.1

Php @%%%% up 1 $.%

Total '1 &%%.%

#t represents the monthly income f the '1 respondents. The highest percentage of the


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''

monthly income bracket is ranging from P&%,%%%=P$%,%%%that has a percentage of @&.% percent,

ne6t is ranging from P@,%%%=&%,%%% which has a percentage of $+. percent. Then it followed by

the income bracket ranging P$%,%%%=P'%,%%% which has a percentage if &.1 percent. The second

to the last is below P@,%%% which has a percentage of @.' percent. nd the lowest percentage is

income that range to P@%,%%% and above with a percentage of $.% of all the total respondents.

Table @

Freuenc! and Percentage Distributions of the Respondents "ccording to %mplo!ment Status

Fre2uency Percent

.alid 2mployed $@+ '.1

Cnemployed &++ '.$

Total '1 &%%.%

This table shows the employment status of '1 respondents which is e3uivalent to &%%

percent. The highest percentage of employment status is the employed with a percentage of '.1

percent and the unemployed has a '.$ percent f all the total respondents.

Table

Freuenc! and Percentage Distributions of the Respondents "ccording to &i'il Status

Fre2uency Percent

.alid Single &' +&.%4arried $$% @@.'

Aidow &@ '.1

Total '1 &%%.%

This table represents the civil status of the respondents. #n a given data the highest


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'+

percentage is the married with a percentage of @@.', it was followed by single that has a

percentage of +&.% percent, and the lowest percentage is the widowed with a percentage of '.1

percent of all the total respondents.

Table )

Freuenc! and Percentage Distributions of the Respondents "ccording to %ducational

(ac)ground

Fre2uency Percent

.alid elementary undergrad $ .@

elementary graduate & .'

high school undergrad &) +.'

high school graduate &&' $1.+

college undergrad &+1 ').$

college graduate &&) $.+

Total '1 &%%.%

#t represents the educational background of the respondents. #t consists of 2lementary,

Figh School and 5ollege whether it is Cndergrad or ;raduate. The highest percentage rely in the

5ollege Cndergrad that has a percentage of ').$ percent, ne6t is college graduate that has $.+,

followed by the high school graduate which is e3uivalent to $1.+ percent, then the high school

undergrad which is +.' percent, second to the last is, elementary undergrad that has .@ percent,

and lastly those elementary graduate that has .' percent of all the total respondents.

##. !#NN5#" P/8:C5TS N: S2/E#52S

Table 1


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'@

Sur'e! results on Sa'ings

Resonses

! Percent

$a)ings Savings ccount $&& @.@O

#ndividual Savings ccount + &.1O

8thers $.)O

Total $$& &%%.%O

This table represents the savings that the respondents availed. #n a given data the highest

percentage is the savings account with a percentage of @.@ percent, it was followed by other

accounts that the respondents availed with a percentage of $.) percent, and the lowest percentage

is the individual savings account with a percentage of &.1 percent.

Table

Sur'e! results on (orro*ings

Resonses

! Percent

Borrowings "oan +) @$.$O

5redit 5ard '& '+.+O

Fousing "oan .)O

Business "oan @ @.O

8thers & &.&O

Total % &%%.%O

This table represents the kinds of borrowing that the respondents availed. #n a given data

the highest percentage is loan with a percentage of @$.$ percent, it was followed by credit card

that has a percentage of '+.+ percent, ne6t is housing loan with the percentage of .) percent.

The second to the lowest percentage is the business loan with @. percent and the lowest is other

loans that the respondents availed with a percentage of &.& percent.

Table &%


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'

Sur'e! Result on Insurance

Resonses

! Percent

Insurance "ife #nsurance '@ +'.$O

Fealth #nsurance +% +.+O

8thers ).+O

Total 1& &%%.%O

This table shows the respondents who availed insurance in a bank. #n the given data the

highest percentage is health insurance with the percentage of +.+ percentI it was followed by

life insurance with a percentage of +'.$ percent. nd the lowest percentage is the other insurance

that the respondents availed with a percentage of ).+ percent.

###. !inancial #nclusion

Table &&

Sur'e! results on both a'ail and cannot a'ail financial products or ser'ices

Fre2uency Percent

Ealid Les $$+ @.'

No &)+ +'.)

Total '1 &%%.%

#n this table it shows the percentage of the respondents who both availed and not availed

financial products and services. The highest percentage is the respondent who availed financial

products and services to the bank with a percentage of @.' percent. The lowest percentage is the

respondents who do not availed financial products and services to the bank with a percentage of

+'.) percent.

Table &$ Sur'e! results on the reasons for opening a ban) account

Fre2uency Percent

.alid for receiving remittances && $.1

for saving money &+ +1.)

to re3uest a loan & +.1


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')

Total $$+ @.'

0issing System &)+ +'.)

Total '1 &%%.%

#n this table it shows the reasons why the respondents open an account to the bank. The

highest percentage is for saving money with a percentage of +1.) percent. Ne6t is to re3uest a

loan with a percentage of +.1 percentI and the lowest percentage is for receiving remittances with

a percentage of $.1 percent.

Table &'

Sur'e! results on the reasons for not ha'ing ban) account

!re3uency Percent

.alid # have no moneyGlittle money to put in &$@ '&.+

5oncerned that there may be too many

charges

&% $.@

Tried to open but application was

declined

1 $.%

Not important to me '& ).1

Total &)+ +'.)

0issing System $$+ @.'

Total '1 &%%.%

#n this table it shows the reasons why the respondents are not able to have a bank

account. The highest percentage is because they don-t have moneyG little money to put in with a

percentage of '&.+ percent. #t was followed by they don-t important to them with a percentage of

).1 percent. Then it was followed by concerned that there be may be too many charges with a

percentage of $.@ percent. nd the lowest percentage is the tried to open but application was

decline with a percentage of $ percent.

Table &+

Sur'e! results on ho* freuent+often deposit mone! in ban) account


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'1

Fre2uency Percent

.alid t least once a month @ $'.

"ess than once a month + &&.

# put money when # can &.

8thers &+ '.@

Total $$& @@.@

0issing System &)) ++.@

Total '1 &%%.%

#n this table it shows how often the respondents deposit money in their bank account for

savings. The highest percentage is at least once a month with a percentage of $'. percent, it was

followed by # put money when # can with a percentage of &. percent. Ne6t is less than once a

month with a percentage of &&, percent and the lowest percentage is others with a percentage of

'.@ percent.

Table &@

Sur'e! results on the reasons to borro* from the ban)

Fre2uency Percent

.alid "ow rate of interest +$ &%.

Aas offered by the bank &$ '.%#t is easy ) &.1

Trustworthy lender &1 +.@

8thers $ .@

Total 1& $%.+

0issing System '&) ).

Total '1 &%%.%

#n this table it shows the reasons why the respondents borrow from the bank. The highest

percentage is the low rate of interest with a percentage of &%. percent. #t was followed by the

trustworthy lenders with a percentage of +.@ percentI ne6t was offered by the bank with a

percentage of ' percent. Second to the lowest percentage is because it was easy with a

percentage of &.1 percent. nd the lowest percentage is the other reasons why they borrow from


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'

the bank with a percentage of %.@ percent.

Table &

Sur'e! results on refused to ha'e a loan or credit

Fre2uency Percent.alid Les &@ '.1

No @ &+.&

Total )& &).1

0issing System '$) 1$.$

Total '1 &%%.%

The table shows if the respondents were refused to have a loan or credit in a bank. The

highest between the two were said no that they did not refused for a loan with a percentage of

&+.& percent. nd the lowest were said yes that they already refused for a loan with a percentage

of '.1 percent.

Table &)

Sur'e! results on reasons to refuse for a loan or credit

Fre2uency Percent

.alid Previous bad credit history & .'

No 0ob, unemployed &+ '.@

Total &@ '.1

0issing System '1' .$

Total '1 &%%.%

The table shows the reasons why the respondents are refused to have loan or credit. The

highest is the no 0obGunemployed with a percentage of '.@ percent. nd the lowest is the previous

bad credit history with a percentage of %.' percent/

Table &1

Sur'e! results on needed mone! in case of emergenc!

Fre2uency Percent

.alid sk family or friends $$& @@.@

Take out loan from other sources && $.1

Sell something $% @.%

Cse my credit card 1 $.%


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+%

:raw on savings &'1 '+.)

Total '1 &%%.%

#n this table it shows what the respondents do if they needed money in case of emergency.

The highest percentage is to ask family or friends with a percentage of @@.@ percent. #t was

followed by draw on my savings with a percentage of '+.) percent. Ne6t is to sell something

with a percentage of @ percent. Second to the lowest percentage is take out loan from other

sources with a percentage of $.1 percent. nd the lowest percentage is to use my credit card with

a percentage of $ percent.

Table &

Sur'e! results on the products or ser'ices offered b! ban) helps to impro'e life

Fre2uency Percent

.alid No +' &%.1

#f yes, in what way &1+ +.$

Total $$) @).%

0issing System &)& +'.%

Total '1 &%%.%

#n this table it shows if having a bank account helps the respondents to improve their

lives. The highest between the two answers said yes with a percentage of +.$ percent. nd the

lowest said no that it does not help them to improve their lives with a percentage of &%.1 percent.

Table $%

Sur'e! results from the le'el of interest from local financial ser'ices

4edian(4dn

Eariance #?/ Eerbal#nterpretation

&.Saving small amount of

money

& .+%' & Eery #nterested

$.Taking a business loan ' &.$&1 $ Not very

#nterested

'.dvice about managingdebt

' &.&% & Not very


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+&

interested

+.dvice on welfare

benefit

$ &.%@% & !airly #nterested

@.4ore information about

financial matter

$ &.% & !airly #nterested

This table shows how the respondents rank their level of interest from this local financial

services, a descriptive tool was used particularly 4edian, Eariance and #?/.

The result shows from a sample of '1 respondent, they are very interested to save a small

amount of money ,$dn1I/R1034. The respondents are fairly interested about the

advice on welfare benefit ,$dn2I/R1034 and to have more information about financial

matter ,$dn2I/R1034. The table also shown that they are not very interested about

taking a business loan ,$dnI/R2034 and an advice on how to manage their debt

,$dnI/R1034.

Table $&

Sur'e! results from the le'el of importance of the follo*ing

4edian

(4dn

Eariance #?/ Eerbal

#nterpretation&.Bank account & .$ % Eery #mportant

$.Small personal loan ' &.@& $ Not very

important

'.5redit card ' &.$'' & Not very

important

+.#nvestment advice $ &.$) & !airly important@.!inancial education $ &.&% & !airly important

This table represent how respondents give importance to bank account, small personal

loans, credit card, investment advice and financial education. By using the descriptive method

specifically 4edian, Eariance and #?/.

The results show that bank account is very important to the respondents,

,$dn1I/R5034. #nvestment advice and financial education is fairly important


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+$

,$dn2I/R1034. nd both small personal loans ,$dnI/R2034 and credit

cards ,$dnI/R1034 has the least importance given by the respondents.

#E.?C"#TL 8! "#!2

Table $$

Sur'e! results on ualit! of life

4edian(4dn

Eariance #?/ Eerbal#nterpretation

&.Fow much do you

en0oy life

$ .@$' & Eery much

$.Fow safe do you feel #

n your daily life

' .'$ & 4oderate

amount

'.:o you have enough

money to meet yourneeds

' .1%& $ 4oderate

amount

+.:o you haveopportunity for leisure

activities

' .)$ & 4oderate

amount

@.Fow healthy is your

physical environment

' .'@ & 4oderate

amount

.Fw secured are you in

te condition of yourliving place

$ .)+% & Eery much

).re you aware on

whats happening in yourcommunity

' .@@% % 4oderate

amount

1.:o you contribute for

the improvement in your

community

' .@& & 4oderate

amount

The table represent the ?uality of life of '1 sample of respondents, using the


43/61

+'

descriptive analytical tool specifically, 4edian, Eariance and #?/. Their results show that the

respondents feel so much safeties in their daily life ,$dn I/R1034 , they are secured in

the condition of their living place ,$dnI/R1034. The table also show that there is a

moderate amount of en0oyment ,$dn2I/R1034 and opportunity for leisure activitities

,$dnI/R1034also a moderate amount of having enough money in times of need

,$dnI/R2034. nd moderate amount to their physical environment ,$dn

I/R1034., on how aware they are on what is happening in their community

,$dnI/R5034. and how they contribute for its improvements

,$dnI/R1034.


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++

CHAPTER .

$"00AR-% C#!C&"$I#! A!' REC#00E!'ATI#!

$ummary

This study was conducted to determine the relationship of the estate of financial inclusion

and the perceived 3uality of life of 4arikina residents. Specifically, it seeks to answer the

following 3uestions.

&. Ahat is the socio demographic profile of the residents in 4arikina 5ityge

a. 5ivil Status

b. ;ender

c. 2mployment Status

d. Personal #ncome

e. 2ducational Background

$. Ahat financial products and services are being offered by these institutions in 4arikina


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+@

'. Ahat is the state of financial inclusion in these institutions as determined by>

a. ccess

b. Csage

c. ?uality

d. Aelfare

Hyothesis

There is a significant relationship between the state of financial inclusion and the

perceived 3uality of life in 4arikina city.

Through the use of survey that was conducted in the 5ity of 4arikina, the data was

conducted from '1 respondents through a statistical tools such as descriptive and inferential

statistical tool to come up to the result. The result was analy7ed to formulate a conclusion.

Conclusion

fter a careful analysis of the results, this study arrived at the following conclusions>

The financial products and services which availed by the residence of 4arikina, the

SE#N;S 558CNT were most accessible and affordable for the respondents. The residence of

4arikina wanted to save their money for their security and family financial needs.

Ahile in terms of the state of financial inclusion, ma0ority of the respondents say L2S


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that they have an access to the bank. That is why they have more understanding and their access

to the financial products and services improved and secure mostly their lives, and helped also the

economic condition of the country.

#n terms of the 3uality of life of 4arikina residence most of the respondents has a

48:2/T2 48CNT of living in terms of en0oyment and leisure activity. Ahile they are

E2/L 4C5F assured in terms of their safeties and securities in their daily lives.

The researchers then concluded that most of the respondents engaged in financial

products and services changed their 3uality of life by improving it not only at their present life

but also for their future. Those affordable products affect the 3uality of life of respondents in

terms of their financial decision, in a way that they make movements in employing their lives to

formal financial institution.

Recommendation

The researchers recommend to the respondents that they should be more aware to the

financial products and services that offered by the bank and how they can avail it. They also need

to have better understanding about the financial products and services that offered by the bank to

know what are the benefits they can get if they will avail the financial product and services. The

researchers also encourage the respondents to availed financial products and services for their

own family to secure their lives and the opportunity to economic condition.

The researchers recommend to the banks that they should give more attention to the

people who cannot avail financial products and services in the banks. They should have a better

plan on how they can encourage the people to avail financial products and services that they


47/61

+)

offered. nd also they need to have a plan on how they can motivate or convince the people to

avail the services that they offer and to tell them what are the benefits of availing financial

services. The researchers also recommend to the bank that they need to create a strategy to

increase the number of people that can have availed to the bank. nd they should lower the

service charge that they impose so that the people can have an access to the financial product and

services that they offered.

To the future researchers the researchers recommend that if they decided to conduct the

same study, they should conduct first the pilot testing to make the sure the reliability of the study.

#t will validate the study because they will be using test to validity to be more accurate about the

data of the study. nd also, they need to gather more information with regards to this study in

order to make it more reliable.


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+1

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