nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2023‒10‒30
six papers chosen by
Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca


  1. The Impact of a Financial Inclusion Program on Household’s Payment Choice, Savings, and Credit By Gandelman, Néstor; Lluberas, Rodrigo; Misail, Daniel; IDB Invest
  2. Financial Inclusion through Mobile Money in developing countries: the case of Vietnam By Nguyen, Luan-Thanh
  3. Selection into Financial Education and Effects on Portfolio Choice By Irina Gemmo; Pierre-Carl Michaud; Olivia S. Mitchell
  4. Spillover Effects of Financial Education: The Impact of School-Based Programs on Parents By Frisancho, Verónica
  5. Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency By Alexandra Sutton-Lalani; Sebastian Hernandez; John Miedema; Jiamin Dai; Badr Omrane
  6. "Community Voices and Financial Choices: Unravelling the Impact of Representation on Rural Cooperative Banks" By Amoako, Frimpong; Asuamah Yeboah, Samuel

  1. By: Gandelman, Néstor; Lluberas, Rodrigo; Misail, Daniel; IDB Invest
    Abstract: Uruguay implemented an ambitious financial inclusion program that included a fiscal stimulus through VAT rebates and subsidies for point of sale (POS) adoption. One of its main provisions banned cash payment of wages and social benefits and forced financial institutions to open wage-accounts with extremely beneficial conditions. In the aggregate, the number of debit cards transactions increased sharply. We test the wage-banking channel of the financial program exploiting differences in the treatment intensity between public sector and private sector workers. We find that while the provision of bank accounts increased the number of debit cards, it had modest effects on the probability of payment with cards that are mostly produced by a more intensive use of debit cards by those who already had them before the Financial Inclusion Act went into effect. Thus, the aggregate effects must be produced by the fiscal channel of the financial inclusion program. Finally, we fail to find effects on either access to short-term credit or expenditure or savings.
    JEL: D12 G21 G50
    Date: 2023–03
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:12769&r=fle
  2. By: Nguyen, Luan-Thanh
    Abstract: The use of mobile technology services in Vietnam has surged, offering convenience and enhancing various aspects of users' lives. This shift towards wireless connectivity has also affected financial transactions and remittances, aligning with goals of a cashless society and financial inclusion. Mobile money, a widely used mobile service, is examined in this study. We focus on the determinants affecting the adoption of mobile money services, which are of interest to mobile money firms, telecom companies, banks, and developers. Factors like price, social influence, and perceived risk are explored as they influence consumer acceptance. To succeed, service providers must lower costs, emphasize benefits, and ensure seamless functionality. User-friendliness, trust, and data security are essential for sustained adoption and financial inclusion. This study provides insights into mobile money adoption in Vietnam, guiding stakeholders in the mobile technology sector to adapt and thrive in this evolving landscape.
    Keywords: Mobile money, PLS-SEM, Vietnam, UTAUT
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:esconf:278113&r=fle
  3. By: Irina Gemmo; Pierre-Carl Michaud; Olivia S. Mitchell
    Abstract: To examine how financial education affects financial outcomes, one must evaluate whether and how sample selection may bias inferences regarding program impacts. Our incentivized experiment reveals how such selection influences estimated financial education effects. The more financially literate and those expecting higher gains pay more to purchase education, while those who consider themselves very financially literate pay less. Using portfolio allocation tasks, we show that the financial education increases portfolio efficiency and welfare by almost 20 and 3 percentage points, respectively. In our setting, selection does not greatly influence estimated program effects, comparing those participating and those who do not.
    JEL: G11 G41 G53
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31682&r=fle
  4. By: Frisancho, Verónica
    Abstract: This paper studies whether school-based financial education has spillover effects from children to parents. Leveraging data from a large-scale experiment with public high schools in Peru and credit bureau records on the parents of the youth targeted, this study measures the impact of providing personal finance lessons during secondary school on parental financial behavior. Financial education lessons in the school yield limited average spillover effects, but lead to sizable effects on parental financial behavior within disadvantaged households. Among parents from poorer households, the treatment reduces default probability by 26%, increases credit scores by 5%, and increases current debt levels by 40%. The treatment has stronger effects among the parents of daughters, who experience a significant 6.7% increase in their credit score and a 28% reduction in their loan portfolio in arrears. Among the parents of boys, most of the spillover effects are muted.
    Keywords: : Financial Education;youth;spillovers;Financial literacy;Credit records;Treatment effects;Long-lasting impacts
    JEL: C93 D14 G53 O16
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:12696&r=fle
  5. By: Alexandra Sutton-Lalani; Sebastian Hernandez; John Miedema; Jiamin Dai; Badr Omrane
    Abstract: Digitalization—the use of data, digital platforms and advanced analytics—has quickly become widespread in today’s society. This has introduced new opportunities, but it has also created new barriers and exacerbated existing inequities. This is likewise true in the realm of payments, where issues around financial inclusion, digital inclusion and accessibility compound the challenges for users. Our work expands on that of Henry et al. (2023). We base our research on two key premises. First, we apply the social model of disability to the Canadian payments landscape to identify opportunities to remove barriers that marginalize or hinder people. Second, we investigate beyond the standard economic measures and aggregate statistics related to these topics to build a nuanced understanding of the challenges inherent in the current system. Our findings highlight important areas of research and design consideration for new digital payment products and services, specifically for central banks contemplating the introduction of a central bank digital currency. We identify barriers that rural populations, Indigenous communities, Canadians with low incomes and persons with disabilities face in using financial products. We also note a deficiency in the current research and payment offerings for those with cognitive accessibility challenges. With these findings, we aim to build awareness of the inequities and challenges present in the current payments system and motivate existing financial technology providers to move toward offering more-inclusive products and services.
    Keywords: Bank notes; Central bank research; Digital currencies and fintech; Digitalization; Financial services
    JEL: A14 E42 E50 I31 O33 O51
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:bca:bocadp:23-22&r=fle
  6. By: Amoako, Frimpong; Asuamah Yeboah, Samuel
    Abstract: The study investigates the critical role of community representation within Rural Cooperative Banks (RCBs) and its influence on key decision-making processes, specifically, pertaining to financial policies, lending practices, and resource allocation. As RCBs play a pivotal role in providing financial services to local communities, understanding the dynamics of community representation within these institutions is essential. Through a comprehensive examination of the interactions between community voices and RCB operations, this research sheds light on whether and how local perspectives shape the accessibility of financial services for rural populations. By exploring the intricate relationship between representation and decision-making, this study contributes valuable insights to enhance the effectiveness of RCBs in serving their communities and promoting financial inclusivity.
    Keywords: Community representation, Rural Cooperative Banks (RCBs), Decision-making processes, Financial policies, Lending practices, Resource allocation, Financial services, Rural communities, Access to finance, Financial inclusivity
    JEL: G21 G28 O16 P25 R12
    Date: 2023–05–07
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118634&r=fle

This nep-fle issue is ©2023 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.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.