|
on Financial Literacy and Education |
|
Issue of 2024‒08‒26
four papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Debuque-Gonzales, Margarita; Corpus, John Paul P. |
| Abstract: | This paper examines financial inclusion in the Philippines, benchmarking it against other developing Asian economies using the latest supply-side and demand-side data. It uses probit regressions on Philippine microdata from the World Bank’s 2021 Global Findex Database, providing a comparative analysis with the country’s regional peers. The study finds the Philippines leading in creating an enabling environment but shows mixed performance in financial outreach and uptake and lagging outcomes in account ownership and usage. Probit regressions reveal positive associations between financial inclusion and individual characteristics like education, income, and employment, and a nonlinear relationship with age. The study uncovers a smaller gender gap in formal account ownership and use and emerging disparities in financial technology access across education and income levels, particularly mobile money. Barriers such as high cost, distance, and lack of trust in financial institutions significantly hinder lower-income households, with Filipinos more affected by these barriers than their Association of Southeast Asian Nations counterparts. |
| Keywords: | Financial inclusion |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2024_vol__48_no__1a |
| By: | Luis Oberrauch; Tim Kaiser |
| Abstract: | We study the effects of digital financial education interventions on undergraduate students’ financial knowledge in a small-scale RCT. We test the substitutability or complementarity of two treatments: an online video financial education treatment and an incentive-based approach where students are issued pre-paid voucher cards worth 50 EUR to register with a broker specializing in robo-advised investment in Exchange Traded Funds (ETFs). Three months after the intervention, the video treatment enhanced financial knowledge scores by more than 0.5 standard deviations. Conversely, the vouchers showed no effect. The findings suggest that subsidies encouraging robo-advised investment into ETFs cannot substitute direct financial education in our setting, and there is no evidence for complementarity between these interventions. |
| Keywords: | digital intervention, financial literacy, Financial knowledge, financial education, robo-advisor, ETFs |
| JEL: | G53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11187 |
| By: | Ubeda, Fernando; Mendez, Alvaro; Forcadell, Francisco Javier; López, Belén |
| Abstract: | This paper investigates the impact of multinational banks (MNBs) implementing socially sustainable practices on financial inclusion in developing countries. We argue that the specific characteristics of the MNBs, when combined with socially sustainable practices, contribute to building trust and reducing risks in developing countries where they operate. This positive externality causes improvements for the underprivileged in three dimensions of financial inclusion: their demand for bank accounts, their propensity to save, and their access to credit. A sample of 152 multinational banks in 32 developing countries and 37, 952 individuals proves the positive effect of sustainable practices. |
| Keywords: | ESG criteria; sustainable banking; financial inclusion; multinational banks; SDGs; social sustainability |
| JEL: | F3 G3 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124260 |
| By: | Siyu Chen; Qing Guo |
| Abstract: | Employing a comprehensive survey of micro and small enterprises (MSEs) and the Digital Financial Inclusion Index in China, this study investigates the influence of fintech on MSE innovation empirically. Our findings indicate that fintech advancement substantially enhances the likelihood of MSEs engaging in innovative endeavors and boosts both the investment and outcomes of their innovation processes. The underlying mechanisms are attributed to fintech's role in fostering long-term strategic incentives and investment in human capital. This includes the use of promotions and stock options as rewards, rather than traditional perks like gifts or trips, the attraction of a greater number of university graduates, and the increase in both training expenses and the remuneration of technical staff. Our heterogeneity analysis reveals that fintech exerts a more pronounced effect on MSEs situated in economically developed areas, those that are five years old or younger, and businesses with limited assets and workforce. Additionally, we uncover that fintech stimulates the innovation of MSEs' independent research and development (R\&D) efforts. This paper contributes to the understanding of the nuanced ways in which fintech impacts MSE innovation and offers policy insights aimed at unleashing the full potential of MSEs' innovative capabilities. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.17293 |