Financial well-being of customer-to-customer co-creation experience: a comparative qualitative focus group study of savings/credit groups

Abstract

Purpose

This paper aims to explore the effects of the customer-to-customer co-creation experiences of savings/credit groups in the African context and how savings/credit groups influence financial capability and enhance financial well-being.

Design/methodology/approach

Using purposive sampling, a study of a total of 18 focus groups was conducted in sub-Saharan Africa. Nine urban-based savings/credit groups were drawn from across South Africa and additional nine, rural-based savings/credit groups were studied in the Monduli district of Tanzania.

Findings

Findings demonstrate that the African philosophy of Ubuntu, which promotes customer-to-customer interaction, is the cornerstone of the customer-to-customer co-creation experience. Ubuntu philosophical principles were found to influence the dialogue, access, risk and transparency model of co-creation and customer-dominant logic. The results show further that customer-to-customer co-creation experience positively influences the cognitive, financial, personal and social experiences of members. Specifically, it was found that cognitive and financial experiences positively influence financial satisfaction, financial self-esteem, financial self-efficacy and financial capability, all of which enhance financial well-being. In addition, personal and social experiences positively influence equality, self-confidence, entrepreneurial skills and motivation that in turn enhance social well-being.

Research limitations/implications

This study has implications for many different stakeholders concerned with the financial inclusion of low-income consumers, particularly in the southern part of Africa.

Originality/value

To the authors’ knowledge, this is the first study to explore the effects of customer-to-customer co-creation experiences in traditional financial services settings in order to understand how these indigenous financial services influence the financial capability and financial well-being of co-creation members.

Citation

Sithole, N., Sullivan Mort, G. and D'Souza, C. (2021), "Financial well-being of customer-to-customer co-creation experience: a comparative qualitative focus group study of savings/credit groups", International Journal of Bank Marketing, Vol. 39 No. 3, pp. 381-401. https://doi.org/10.1108/IJBM-07-2020-0413