nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2022‒05‒16
five papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Students' Financial Literacy: Digital Financial Literacy Perspective By Nurhazrina Mat Rahim
  2. New Financial Technologies, Sustainable Development, and the International Monetary System By Prasad, Eswar
  3. A Central Bank Digital Currency for India? By Barry Eichengreen; Poonam Gupta; Tim Marple
  4. Assessment and analysis of accounting and finance apps in start-ups in Germany: an explorative study By Salvy Goel, Salvy; Berrones-Flemmig, Claudia Nelly
  5. Accessibility of Institutional Credit among the Agricultural Labour Households and its Impact on their Livelihood By Kundu, Amit; DAS, SANGITA

  1. By: Nurhazrina Mat Rahim (Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, 42300 Bandar Puncak Alam, Selangor, Malaysia Author-2-Name: Norli Ali Author-2-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, 42300 Bandar Puncak Alam, Selangor, Malaysia Author-3-Name: Mohd Fairuz Adnan Author-3-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, 42300 Bandar Puncak Alam, Selangor, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study aims to assess students' financial literacy levels using digital financial literacy (DFL), the most recent element. Methodology – Students who are based in Selangor, Malaysia, were chosen for this study as they recorded a high rate of youth bankruptcy. Convenience sampling was used to distribute the questionnaires among the students between March and August of 2021, where a total of 184 responses were retrieved. Findings and Novelty – The results indicated that students possessed advanced financial knowledge and confidence. Despite the extensive experience in completing online financial transactions, the students lack digital financial knowledge and an understanding of the risks associated with digital financial services. Therefore, including DFL in financial education is essential to ensuring future generations' financial well-being. This study also adds to the limited literature on financial digital literacy and serves as an eye-opener to policymakers on its importance in financial education. Type of Paper - Empirical"
    Keywords: Financial literacy, financial confidence, Digital financial literacy, Digital financial knowledge, Students
    JEL: I22 M29 O16
  2. By: Prasad, Eswar (Asian Development Bank Institute)
    Abstract: New financial technologies—including those underpinning cryptocurrencies—herald broader access to the financial system, quicker and more easily verifiable settlement of transactions and payments, and lower transaction costs. Domestic and cross-border payment systems are on the threshold of transformation, with significant gains in speed and lowering of transaction costs on the horizon. For emerging market and developing economies, the digitization of finance carries a number of potential benefits, including broadening of financial inclusion, quicker and cheaper cross-border remittances, and increased convenience of domestic payments. But some of these developments could also increase these countries’ exposure to volatile capital flows. Governments, central banks, and regulatory agencies will face difficult challenges in striking the right balance between fostering innovations and mitigating risks arising from them.
    Keywords: fintech; payment systems; international payments; financial inclusion; capital flows; financial regulation
    JEL: E50 G00
    Date: 2021–07
  3. By: Barry Eichengreen (University of California, Berkeley); Poonam Gupta (National Council of Applied Economic Research); Tim Marple (University of California, Berkeley)
    Abstract: We review arguments for CBDC issuance in India. These include facilitating payments,enhancing financial inclusion, enabling the central bank and government to retain control of the payments system, facilitating cross-border payments, reducing dependence on the dollardominatedglobal payments system, providing an encompassing platform for digital financial innovation. We then compare progress in India with other countries. In setting an end 2022 target date for issuance, India is in line with the other BRICS, but not with other countries with comparable levels of per capita GDP, which have been more reluctant to commit to a date. Nor is it in line with other countries with comparably independent central banks, which have been more cautious about setting a deadline. Finally, we sketch a roadmap and timeline for India’s CBDC project going forward.
    Keywords: Central Bank, Digital Currency, India, Monetary Systems, Payment Systems
    JEL: E40 E42 E51 E50 E58 G21
    Date: 2022–05–03
  4. By: Salvy Goel, Salvy; Berrones-Flemmig, Claudia Nelly
    Abstract: Small and medium-sized enterprises face several challenges mainly related with lack of access to Finance frequently due to a lack of formal Accounting system and financial management, which leads to weaknesses in their internal financial capabilities. Moreover, from the supply side traditional financial institutions have failed to fulfil the needs of SMEs and presently FinTechs have developed innovative ways to increase the financial literacy in SMEs and to facilitate financing for SMEs (Imanbaeva et al., 2017). This study aims to assess and analyze one of these innovative financial instruments in an explorative way: some relevant Accounting and Finance applications present in the market, based on criteria decided by exploring the scientific literature and evaluating it by interviewing Accounting professionals working in start-ups in Germany. The results show that Zoho Books and Xero turned out to be better than the others in the services provided by them and they received the best ratings and feedback. Their best features are their user friendliness, the integrations offered by them, the diversity of the financial reports that they offer and amount of automation they offer to perform the everyday tasks. The most important factor when choosing an Accounting system is assessing the needs and requirements of the business and then to select the software that best suits the needs. Therefore, this research can be also helpful for small and medium business owners who do not have much idea about the financial aspects and need help with choosing the right accounting software for their business, based on the experience and perspectives of the interviewing Accounting professionals. It can act as a guide for them to understand which factors they should take into account while making their decision and the feedback from the participants can help them while choosing among the five software analysed during this research.
    Keywords: SME Finance,Fintech,Accounting and Finance apps,innovative financial instruments,start-ups,Germany
    JEL: M O
    Date: 2022
  5. By: Kundu, Amit; DAS, SANGITA
    Abstract: Despite the major structural changes in the Indian credit system, landless and near landless agricultural labour households are still facing difficulties while accessing formal credit services. The paper tries to examine the possible factors influencing the accessibility of institutional credit by agricultural labour households and its role in their livelihood. Based on a village-level field investigation in the district of East Medinipur, West Bengal, the study shows that the Possession of operational land, membership of SHG, diversified farm and non-farm income, and higher financial literacy index are the significant determinants to increase the possibility of receiving institutional credit for these households. Using the two-stage least square method, the paper further reveals that the monthly per capita income of the agricultural labour households can increase if they use institutional and non-institutional sources of loans in income-generating activities. The study also suggests that the lower the age of the household head and the less dependency on the informal credits for consumption purposes of the households, the higher the possibility of improving the livelihood of the agricultural labour households.
    Keywords: Agricultural labour households, Institutional credit, Probit regression, Instrumental variable, Livelihood
    JEL: C25 H81 I31 J43 Q12
    Date: 2021–09–02

This nep-fle issue is ©2022 by Viviana Di Giovinazzo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.