This study examines the association between the availability of alternative financial services (AFS) in the geographic area and consumers’ use of AFS products and whether consumers’ financial capability moderates the effect of access. The 2021 wave of the National Financial Capability Study (NFCS) is used. Results from this study revealed that a greater density of AFS lenders in the area predicted higher probability and frequency of use, and financial capability remained an overall strong negative predictor of AFS use. The findings further suggest that financial knowledge and perceived money-management capability might negatively moderate the effect of AFS lender density on individual AFS use. We also found indications that payday bans are linked to an increased use of other types of AFS products. Implications for policymakers, scholars, and researchers are discussed.

Accepted Oral Presentation