nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2021‒01‒25
seven papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Individual Sustainable Investment in Japan By Gunnar Gutsche; Miwa Nakai; Toshi H. Arimura
  2. The Bahamas; Financial Sector Assessment Program-Technical Note on Financial Inclusion, Retail Payments, and SME Finance By International Monetary Fund
  3. Financial Inclusion: What Have We Learned So Far? What Do We Have to Learn? By Adolfo Barajas; Thorsten Beck; Mohammed Belhaj; Sami Ben Naceur
  4. Does PMJDY Scheme Augment Financial Inclusion in India? Evidence from Indian States By Singh, Bhanu Pratap; Kumari, Annu; Sharma, Tanya; Malhotra, Abhishek
  5. Reducción de la brecha del crédito en México en un ambiente de incertidumbre generada por la pandemia COVID-19: Un enfoque de ciencia de datos (machine learning) By Rodríguez-García, Jair Hissarly; Venegas-Martínez, Francisco
  6. Consumer Protection for Financial Inclusion in Low and Middle Income Countries: Bridging Regulator and Academic Perspectives By Seth Garz; Xavier Giné; Dean Karlan; Rafe Mazer; Caitlin Sanford; Jonathan Zinman
  7. Filling the Gap: Digital Credit and Financial Inclusion By Majid Bazarbash; Kimberly Beaton

  1. By: Gunnar Gutsche (University of Kassel, Institute of Economics, Nora-Platiel-Str. 5, 34109 Kassel, Germany.); Miwa Nakai (Fukui Prefectural University, Faculty of Economics, 4-1-1, Matsuoka Kenjojima, Eiheiji-cho, Fukui, 910-1195, Japan.); Toshi H. Arimura (Faculty of Political Science and Economics & Research Institute for Environmental Economics and Management (RIEEM), Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan.)
    Abstract: Given the limited literature on sustainable investment behavior in the East Asian region, this study empirically examines individual sustainable investment behavior in Japan from three perspectives. Based on data from a representative web-based survey among financial decision makers in Japanese households, we analyze i) the individual awareness of sustainable investments, ii) the current share of sustainable investments in individual investors f portfolios, and iii) the individual investors f intention invest sustainably in the future. We find that the clear minority has ever heard of sustainable investments before, indicating huge information deficits among Japanese individual investors and that individual sustainable investment in Japan is still in its infancy. Moreover, financial literacy, social signaling or word-of-mouth learning, perceived financial performance, and risk preferences are the most important determinants of current individual sustainable investments in Japan. Remarkably, non-financial factors such as personal attitudes and values seem to be less important than in Western countries, suggesting country and cultural differences in individual investment behavior. Nevertheless, the intention to invest in a sustainable manner in the future is also driven by individual environmental values and ecological political identification. Overall, our results imply several potential avenues for practitioners and policymakers to mobilize individual investors for sustainable investments in the future.
    Keywords: Sustainable investments, individual investors, Japan, survey
    JEL: Q56 G11 C25
    Date: 2021–01
  2. By: International Monetary Fund
    Abstract: The CBOB considers increased financial inclusion as a critical reform area. In this regard, the FSAP assessed developments in financial inclusion for individuals and enterprises (SME finance), retail payments and provides recommendations for improvements. A review of the market was undertaken using the Payment Aspects of Financial Inclusion (PAFI) framework covering areas such as the legal/regulatory framework and oversight, retail payment systems and instruments, access to transaction accounts and use cases, as well as SME policy, credit infrastructure, economic empowerment funds and consumer protection and financial literacy.
    Keywords: Banking;Credit;Payment systems;Financial services;Credit bureaus;ISCR,CR,transaction fee,venture capital fund,credit bureau,private sector
    Date: 2019–07–01
  3. By: Adolfo Barajas; Thorsten Beck; Mohammed Belhaj; Sami Ben Naceur
    Abstract: The past two decades have seen a rapid increase in interest in financial inclusion, both from policymakers and researchers. This paper surveys the main findings from the literature, documenting the trends over time and gaps that have arisen across regions, income levels, and gender, among others. It points out that structural, as well as policy-related, factors, such as encouraging banking competition or channeling government payments through bank accounts, play an important role, and describes the potential macro and microeconomic benefits that can be derived from greater financial inclusion. It argues that policy should aim to identify and reduce frictions holding back financial inclusion, rather than targeting specific levels of inclusion. Finally, it suggests areas for future research.
    Keywords: Financial inclusion;Financial services;Credit;Banking;Mobile banking;WP,bank account,economic growth,incorporated firm,financial activity,household enterprise,loan officer
    Date: 2020–08–07
  4. By: Singh, Bhanu Pratap; Kumari, Annu; Sharma, Tanya; Malhotra, Abhishek
    Abstract: The study attempts to examine the impact of financial inclusion, promoted through Pradhaan Mantri Jan Dhan Yojna (PMJDY) scheme, on the economic performance across the Indian states. Using the index of financial inclusion developed in Sarma (2008), the current study develops a 3-dimensional FII for 25 major Indian states for the year 2011 and 2016 to assess the status of financial inclusion. Cross-sectional and pooled Ordinary Least Square regression techniques are applied to examine the impact of financial inclusion on the economic performance of the Indian states. The slope and interaction dummies are used to incorporate the effect of PMJDY scheme, which takes value 1 for structural change and 0 for the control period. The major findings of the study suggest the PMJDY scheme failed to augment financial inclusion in India in the short-run. Lack of physical infrastructure, human development and effective governance are the major reasons behind the failure of the PMJDY scheme. Hence, structural reforms are warranted in the regulatory framework for better economic outcomes.
    Keywords: Financial inclusion, Economic growth, PMJDY scheme, Pooled OLS regression
    JEL: G2 G28 O11
    Date: 2020–11–30
  5. By: Rodríguez-García, Jair Hissarly; Venegas-Martínez, Francisco
    Abstract: Resumen El otorgamiento de microcréditos de forma eficiente y transparente a través de plataformas digitales a individuos que desarrollan actividades económicas y que buscan mantener su empleo y el de sus trabajadores y que no tienen acceso al sistema financiero convencional es, sin duda, un problema urgente por resolver en la crisis sanitaria por la que atraviesa actualmente México. La presente investigación desarrolla varios modelos y estrategias de riesgo de crédito que permiten promover la inclusión crediticia en México de manera justa y sostenible en un ambiente de incertidumbre generada por los estragos presentes y esperados por la pandemia COVID-19. Para ello se utiliza el enfoque de ciencia de datos de machine learning, particularmente, se emplean las herramientas: regresión del árbol de decisión, bosques aleatorios, función de base radial, boosting, K-Nearest Neigbor (KNN) y Redes Neuronales. Abstract The efficient and transparent granting of microcredits through digital platforms to people who carry out economic activities and who seek to maintain their employment and that of their workers and who do not have access to the conventional financial system is, without a doubt, an urgent problem be solved in the health crisis that Mexico is going through. This research develops various credit risk models and strategies that allow promoting credit inclusion in Mexico in a fair and sustainable manner in an environment of uncertainty generated by the present and expected ravages of the COVID-19 pandemic. For this, the data science approach of machine learning is used, in particular, the used tools are: decision tree regression, random forests, radial basis function, boosting, K-Nearest Neigbor (KNN), and Neural Networks.
    Keywords: riesgo crédito, ciencia de datos, mercados de créditos, instituciones financieras, inclusión financiera. credit risk, data science, credit markets, financial institutions, financial inclusion.
    JEL: G23
    Date: 2021–01–04
  6. By: Seth Garz; Xavier Giné; Dean Karlan; Rafe Mazer; Caitlin Sanford; Jonathan Zinman
    Abstract: Markets for consumer financial services are growing rapidly in low and middle income countries and being transformed by digital technologies and platforms. With growth and change come concerns about protecting consumers from firm exploitation due to imperfect information and contracting as well as from their own decision-making limitations. We seek to bridge regulator and academic perspectives on these underlying sources of harm and five potential problems that can result: high and hidden prices, overindebtedness, post-contract exploitation, fraud, and discrimination. These potential problems span product markets old and new, and could impact micro- and macroeconomies alike. Yet there is little consensus on how to define, diagnose, or treat them. Evidence-based consumer financial protection will require substantial advances in theory and especially empirics, and we outline key areas for future research.
    JEL: D11 D12 D18 D81 D82 D83 D9 G21 K23 K31 K42 O12
    Date: 2020–12
  7. By: Majid Bazarbash; Kimberly Beaton
    Abstract: Can fintech credit fill the credit gap in the consumer and business segments? There are few cross-country studies that explore this question. Focusing on marketplace lending, an important part of fintech credit, we use data for 109 countries from 2015 to 2017 to study the relationship between fintech credit to businesses and consumers and various aspects of financial development. Marketplace lending to consumers grows in countries where financial depth declines highlighting the role of fintech credit in filling the credit gap by traditional lenders. This result is particularly strong in low-income countries. In the business segment, marketplace lending expands where financial efficiency declines. Our findings show that low-income countries take advantage of the fintech credit opportunity in the consumer segment but face important challenges in the business segment.
    Keywords: Credit;Fintech;Financial sector development;Banking;Peer-to-peer lending;WP,marketplace lending,fintech lending,cross-country difference,balance sheet lending,consumer lending
    Date: 2020–08–07

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