nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2020‒01‒20
eight papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Financial literacy and its influence on consumers’ internet banking behaviour By Panayiotis C. Andreou; Sofia Anyfantaki
  2. Financial Literacy in Italy: What works among millennials most? By Alessia Sconti
  3. Faktor Yang Mempengaruhi Rumah Tangga Untuk Mengakses Lembaga Keuangan Formal: Studi Kasus Susenas 2015 By Ngasuko, Tri Achya
  4. Networks, Start-up Capital and Women’s Entrepreneurial Performance in Africa: Evidence from Eswatini By Brixiová, Zuzana; Kangoye, Thierry
  5. Housing Investment, Stock Market Participation and Household Portfolio choice: Evidence from China's Urban Areas By Huirong Liu
  6. Local ambassadors promote mobile banking in Northern Peru By Marcos Agurto; Habiba Djebbari; Sudipta Sarangi; Brenda Silupu; Carolina Trivelli; Javier Torres
  7. The economic forces driving FinTech adoption across countries By Jon Frost
  8. Inequality and gender economic inclusion: the moderating role of financial access in Sub-Saharan Africa By Simplice A. Asongu; Joseph Nnanna; Paul N. Acha-Anyi

  1. By: Panayiotis C. Andreou (Cyprus University of Technology and Durham University); Sofia Anyfantaki (Bank of Greece and Athens University of Economics and Business)
    Abstract: This study examines the level and antecedents of financial literacy and investigates its influence on consumers’ internet banking behaviour. The focus is on Cyprus, a country that experienced an unprecedented financial crisis in 2013 that caused an enormous shrinkage of the banking sector. Ever since then, banks have been investing in financial innovations, such as internet banking (i-banking), aiming to enhance customer service and efficiency in the age of financial digitalization. Notwithstanding, the results show that financial literacy is yet too low in Cyprus, whereby only 37.33% of the study’s survey adults have a good financial knowledge proficiency level. The results indicate that financially literate consumers show a strong preference for frequent use of i-banking, whereby the odds of using i-banking frequently are increased by more than 64% for one standard deviation increase in the respondents’ financial knowledge score. The findings highlight the crucial interplay of digital and financial sophistication, and their positive influence on consumers’ usage of digital financial services. The evidence from Cyprus also points to policy directions according to which digital financial education programs should be a central element in national financial literacy strategies.
    Keywords: financial literacy; internet banking; digital literacy; financial education; national strategy.
    JEL: D14 D91 G21
    Date: 2019–12
  2. By: Alessia Sconti (Department of Economics (University of Verona))
    Abstract: The research aim is to investigate the relationship between financial literacy and behavior in the face of the growing challenge of Financial Technology. To do so, a financial education program for high school students called “Futuro Sicuro” was set-up to understand if it may change financial habits among millennials. This program provides two treatments at the class level, namely 1) a theoretical, rule-of-thumb based treatment with the presence of a financial advisor, and 2) a digitized treatment using an App and websites based on the learn-by-playing rule. The empirical research is carried out using data collected during the aforementioned program involving 650 students.
    Date: 2020–01
  3. By: Ngasuko, Tri Achya
    Abstract: The World Bank in 2014 reports only 36% of Indonesia's population has access to the formal financial institution. This number shows us the level of financial inclusion in Indonesia. There is still some task to do since Indonesian government has the goals 70% level of financial inclusion in 2019. A survey from BPS, namely Susenas 2015, has the brand new information about the profile of household saving which not available in the previous Susenas survey. This study is the first one which examines determinant factors that deter families from access to formal financial services, mainly saving based on Susenas 2015. The results of the study provide the household profile and identify determinant factors for households to access formal financial institution to make a saving account. By employs multinomial logit method, the probabilities for a household to obtain saving in the formal institution is affected by the demographic characteristics such as age, total family members, youth and old dependent member in the household. Education, employment, and field sector of head household, as well as credit status and location of the head of household as a determinant factor for the head of household to open saving account in the formal financial institution. The findings of this study are vital in providing policy recommendation to increase the level of financial inclusion in Indonesia.
    Keywords: Financial Inclusion, Household Saving, Susenas 2015
    JEL: D14 G21 G28
    Date: 2018–05–01
  4. By: Brixiová, Zuzana; Kangoye, Thierry
    Abstract: This paper analyzes the role of networks in the access of female entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa. The paper first shows that higher initial capital is associated with better sales performance for both men and women entrepreneurs. Women entrepreneurs start their firms with smaller start-up capital than men and are more likely to fund it from their own sources, which reduces the size of their firm and sales level. However, women with higher education start their firms with more capital than their less educated counterparts. Moreover, women who receive support from professional networks have higher initial capital, while those trained in financial literacy more often access external funding sources, including through their networks.
    Keywords: networks,start-up capital,women’s entrepreneurship,multivariate analysis,Africa
    JEL: L53 O12
    Date: 2019
  5. By: Huirong Liu
    Abstract: This paper employs the survey data of CHFS (2013) to investigate the impact of housing investment on household stock market participation and portfolio choice. The results show that larger housing investment encourages the household participation in the stock market, but reduces the proportion of their stockholding. The above conclusion remains true even when the endogeneity problem is controlled with risk attitude classification, Heckman model test and subsample regression. This study shows that the growth in the housing market will not lead to stock market development because of lack of household financial literacy and the low expected yield on stock market.
    Date: 2020–01
  6. By: Marcos Agurto (Universidad de Piura); Habiba Djebbari (Aix-Mareseille Universite); Sudipta Sarangi (Virginia Tech); Brenda Silupu (Universidad de Piura); Carolina Trivelli (Instituto de Estudios Peruanos); Javier Torres (Universidad del Pacifico)
    Abstract: We experiment with a novel way to boost information acquisition that exploits existing social ties between the promoter of a new financial technology and community members. We offer information and training workshops on a new mobile-money platform in periurban and rural areas in Peru. In the treatment group, workshops are led by promoters who are personally known to the invited participants. In the control group, comparable individuals are invited to attend similar workshops, but the workshops are led by agents external to the community. Our findings suggest that lack of information impedes product adoption, which is itself limited by lack of trust in the individual who provides the information.
    Keywords: Financial inclusion, social networks, information transmission, trust
    JEL: D91 G23 I22 I31 O33
    Date: 2020–01
  7. By: Jon Frost
    Abstract: FinTech is being adopted across markets worldwide - but not evenly. Why not? This paper reviews the evidence. In some economies, especially in the developing world, adoption is being driven by an unmet demand for financial services. FinTech promises to deliver greater financial inclusion. In other economies, adoption can be related to the high cost of finance, a supportive regulatory environment, and other macroeconomic factors. Finally, demographics play an important role, as younger cohorts are more likely to trust and adopt FinTech services. Where FinTech helps to make the financial system more inclusive and efficient, this could benefit economic growth. Yet the market failures traditionally present in finance remain relevant, and may arise in new guises.
    Keywords: FinTech; digital innovation; financial inclusion; financial regulation
    JEL: E51 G23 O33
    Date: 2020–01
  8. By: Simplice A. Asongu (Yaoundé/Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria); Paul N. Acha-Anyi (Walter Sisulu University, South Africa)
    Abstract: This study assesses how financial access can be used to modulate the effect of income inequality on gender economic inclusion. The focus is on 42 countries in sub-Saharan Africa (SSA) for the period 2004-2014 and the empirical evidence is based on Generalised Method of Moments (GMM) and Fixed Effects (FE) regressions. Significant results are not apparent in the FE regressions. The following main findings are established from the GMM estimations. There is a negative net effect from the role of financial access in modulating the effect of the Palma ratio on female labour force participation while there is a positive net effect from the relevance of financial access in moderating the effect of the Gini coefficient on female unemployment. There are also net negative effects from the role of financial access in modulating the Gini coefficient and the Palma ratio for female employment. The unexpected findings are elucidated and implications are discussed in the light of challenges to Sustainable Development Goals in the sub-region. Inter alia: financial access is a necessary but not a sufficient moderator of income inequality for the enhancement of women’s participation in the formal economic sector.
    Keywords: Africa; Finance; Gender; Inclusive development
    JEL: G20 I10 I32 O40 O55
    Date: 2019–01

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