Financial services mistreatment, financial access, and financial well-being: A causal mediation analysis

Consumers interacting with mainstream financial services encounter mistreatment and unfair treatment. Significant knowledge gaps exist regarding the consequences of such mistreatment on consumer financial well-being. This study investigates whether financial access—defined as the ownership of financial products and services—mediates the relationship between consumer experiences of mistreatment and their financial well-being. Employing the National Financial Well-Being Survey (NFWS) data from 6171 respondents, the research utilizes causal mediation analysis to assess the impact of financial services mistreatment on individuals' access to financial services and, subsequently, their financial well-being. Results reveal that mistreatment within financial services significantly impairs individual financial access, and further exacerbates consumers’ financial well-being. Research findings emphasize the need for interventions that not only address mistreatment directly but also enhance financial access to mitigate its negative effects on financial well-being.