Abstract

Today, there is a clear understanding of the concept of “financial accessibility” as a necessary condition for sustainable poverty reduction, innovation and economic growth. However, the relationship between financial availability and traditional for the financial sector to ensure the stability, integrity and protection of consumers of financial services has not been sufficiently studied and not considered in a single context. This situation began to be corrected and acquired a special urgency in the post-crisis period, when the study of this problem could help to understand the causes of the onset of financial structural changes. The purpose of the paper is a research of the nature of implicit connections between the level of protection of consumers interests of the financial services market as drivers of innovation development in the country, and three conditional sectors: general economic status, public administration and financial stability. The basis of the study was the statistical information of the IMF, CGAP and the World Bank on the Financial Access 2010 database, the Global Findex database and the G20 Financial Inclusion Indicators of the World Bank, the database of OECD/INFE on Adult Financial Literacy at the time of 2010 for 95 countries with different levels of economic development. The system of simultaneous structural equations was used as a method for calculations. 31 indicators were selected for formalizing the implicit structural links between the four contingent sectors: the general economic condition of the countries, public administration, financial stability of the countries and the level of protection of the interests of consumers of the financial services market, among which 12 major components were selected by the method of main analysis, included for further analysis. The formalization of the relationships between the latent variables introduced in the study allowed the following conclusion: with an increase in the level of protection of the interests of consumers of the financial services market, the level of public administration and the general economic state is growing. Thus, it was confirmed the thesis that the level of consumer protection in case of consumer financial services market fulfills the role of a locomotive for innovative development of the country as a whole. 

Keywords: innovation development, financial attraction of population, financial accessibility, financial stability, economic growth, state regulation, World Bank.

JEL Classification: D18, G21.

Cite as: Poliakh, S. (2018). The consumer protection as a driver of innovative development: case study for consumers of financial services. Marketing and Management of Innovations, 2, 378-387. https://doi.org/10.21272/mmi.2018.2-29

This work is licensed under a Creative Commons Attribution 4.0 International License

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