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on Financial Literacy and Education |
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Issue of 2024‒09‒16
four papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Villarino, Resti Tito (Cebu Technological University); Villarino, Maureen Lorence |
| Abstract: | Background: Online lending applications (OLAs) are rapidly gaining traction in the Philippines, offering previously unbanked individuals access to credit. However, this burgeoning sector is now under scrutiny due to numerous allegations of predatory practices, harassment, and even public shaming, raising significant concerns. Objective: This integrated review critically examines the landscape of OLAs in the Philippines, focusing on user experiences, regulatory constraints, and considerations related to financial equity and consumer protection. Methods: The authors followed Whittemore and Knafl's (2005) integrative review methodology, analyzing app ratings and reviews for 40 OLAs listed in the Google Play Store from January 1, 2024, to July 31, 2024. Cross-referencing was performed using the Securities and Exchange Commission (SEC) registration data. The analysis was conducted using IBM SPSS version 26 and MAXQDA version 2020. Results: The review found that 80% (32 out of 40) of OLAs were moderately rated (3.5-4.4 out of 5.0), suggesting general user satisfaction. However, only 25% (10 out of 40) of these OLAs were registered with the SEC. Critical themes such as high interest rates, hidden charges, and aggressive collection practices were more prevalent among non-registered OLAs. The absence of highly negative ratings (below 2.4) suggests possible rating manipulations. Thematic analysis revealed positive themes like convenience, speed, and accessibility, contrasted by negative themes including predatory practices, lack of transparency, and poor customer service. Conclusion: The OLA landscape in the Philippines is complex, balancing the need for accessible credit with the imperative of stronger regulatory oversight and consumer protection. This review highlights the necessity of enhancing regulatory monitoring and consumer safeguards to ensure financial innovation benefits vulnerable borrowers without exposing them to undue risk. Keywords: consumer protection, digital financial literacy, financial inclusion, fintech regulation, online lending in the Philippines, predatory practices |
| Date: | 2024–08–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:nr456 |
| By: | Nocito, Samuel (Sapienza University of Rome); Venturini, Alessandra (University of Turin) |
| Abstract: | This study evaluates the effect of a financial education program on migrants, emphasizing the importance of inter-institutional cooperation. The Italian case study, the "Welcome-ED" project—a partnership between the Municipality of Turin and the Turin Museum of Savings (MoS)—aimed to provide tailored financial education to diverse migrant groups, relying on cooperation with various local migration center entities: cooperatives, non-profit associations, and provincial centers for adult education. Our evaluation reveals a significant positive increase in migrants' financial literacy after participating in the project. Furthermore, when we redefine the MoS evaluation criteria employing a model from Item Response Theory (IRT), we document that the post-course migrants' greatest improvement was in the topic identified as most difficult by the IRT model. The study documents variations in the project's results, with migrants from cooperatives and non-profit associations benefiting more than those from provincial centers for adult education, primarily due to the different compositions of the migrant groups served. Our findings also highlight the significance of financial education for African migrants, a substantial part of migrants in Europe. The program evaluation underscores the essential role of cooperation between public and private institutions, cooperatives, and non-profit associations in expanding the reach and effectiveness of financial education projects for migrants. We finally emphasize the strengths and limitations of the program, providing recommendations for future enhancement of similar initiatives. |
| Keywords: | migrants, institutions, cooperatives, non-profit, financial literacy |
| JEL: | D14 L30 J15 P13 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17214 |
| By: | Sulehri, Fiaz Ahmad; Audi, Marc; Ashraf, Muhammad Saleem; Azam, Habiba; Bukhari, Syeda Ambreen Fatima; Ali, Amjad |
| Abstract: | Financial integration is important because it has the potential to enhance economic growth and stability by facilitating cross-border capital flows and reducing financial market fragmentation. This study investigates the influence of FinTech credit and banking regulations on financial integration in both developed and developing countries, spanning the period from 2013 to 2019. We consider financial integration to be the dependent variable, and we select FinTech credit, banking regulations, bank concentration, remittance volumes, state-owned enterprises, and financial development as explanatory variables. The study employs the Generalized Method of Moments (GMM) to estimate the coefficients. The findings indicate that FinTech credit, remittance volumes, and financial development all contribute positively to financial integration. In contrast, banking regulations exhibit an insignificant relationship with financial integration. Moreover, the results indicate that bank concentration and state-owned enterprises act as deterrents to financial integration among nations. The implications of the results suggest that to enhance the level of financial integration, global economies should promote FinTech credit, increase remittance volumes, and foster financial development while concurrently discouraging bank concentration and state-owned enterprises. |
| Keywords: | Financial integration, state own enterprises, financial development, FinTech credit, bank regulations, amount of remittances, bank concentration |
| JEL: | G10 G20 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121776 |
| By: | Fliers, Philip T. |
| Abstract: | This study explores how market power and financial flexibility shape corporate investment policies among U.S. large and mature corporations, by estimating firm-specific, time-varying investment-to-added-value sensitivities. We find that firms with market power exhibit lower investment sensitivities, and this effect is more pronounced for the most financially flexible firms. We show that the firm's debt capacity is an important moderator in the relationship between market power and investment sensitivities. Our findings support theoretical predictions that market power and financial flexibility jointly influence investment decisions. The implication is that a lack of competition impedes corporate investments. For investors, these findings highlight the need to monitor both the competitive landscape and financial flexibility of firms in their portfolios. |
| Keywords: | Investments, market power, financial flexibility, added-value, debt capacity |
| JEL: | D40 G31 G32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:qmsrps:202407 |