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on Financial Literacy and Education |
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Issue of 2025–06–30
eleven papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | David Aristei; Manuela Gallo |
| Abstract: | This paper investigates the impact of objective financial knowledge, confidence in one's financial skills, and digital financial literacy on individuals' decisions to seek financial advice from robo-advice platforms. Using microdata from the Bank of Italy's survey on adults' "Financial Literacy and Digital Financial Skills in Italy", we find that individuals with greater financial knowledge are less inclined to rely on online services for automated financial advice. On the contrary, confidence in one's financial abilities and digital financial literacy enhance the likelihood of using robo-advice services. Trust in financial innovation, the use of digital financial services, and the propensity to take risks and save also emerge as significant predictors of an individual's use of robo-advice. We also provide evidence of a significant complementary relationship between using robo-advisory services and the demand for independent professional human advice. In contrast, a substitution effect is found for non-independent human advice. These findings highlight the importance of hybrid solutions in professional financial consulting, where robo-advisory services complement human financial advice. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.20527 |
| By: | Balana, Bedru; Olanrewaju, Opeyemi |
| Abstract: | This paper examines the effects of financial inclusion on adoption and intensity of use of agricultural inputs and household welfare indicators using data from the nationally representative Nigerian LSMS wave-3 (2015/2016) survey. For this, we constructed a financial inclusion index from four formal financial services access indicators (bank account, access to credit, insurance coverage, and digital transaction) using multiple correspondence analysis (MCA). We used Cragg’s two-step hurdle, instrumental variables for binary response variables, and a Generalized Method of Moments (GMM) models in the econometric analysis. Results show that households with access to formal financial services are more likely to adopt agricultural inputs and to apply these more intensively. These same households are less likely to experience severe food insecurity and are more likely to consume diverse food items. We also find that these effects are less for female farmers regardless of formal financial inclusion, suggesting that they may bear more non-financial constraints than their male counterparts. The results suggest a need for targeted interventions to increase access to formal financial services of farm households and gender-responsive interventions to address the differential constraints women farmers face. |
| Keywords: | farm inputs; financial inclusion; food security; households; inorganic fertilizers; seeds; Nigeria; Africa; Western Africa |
| Date: | 2024–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:162588 |
| By: | de Brauw, Alan; Gilligan, Daniel O.; Herskowitz, Sylvan; Roy, Shalini |
| Abstract: | Mobile money can be a vehicle for improving financial access, particularly among disadvantaged populations. For mobile money systems to play this role, though, members of disadvantaged groups must both enroll in and begin to use mobile money systems. In this paper, we describe a randomized trial conducted in collaboration with a bank in Somali region, Ethiopia, that attempted to stimulate use among recent mobile money enrollees in areas near refugee camps. We provide one group with a small transfer to their mobile money account and another group is told they will receive a small transfer if they first make three transactions of any type within a promotional period. The unconditional transfer induces a 9.3 percentage point increase in customers making at least one transaction, while the conditional transfer has no significant effect. The effect is larger among men, but there is evidence that it also induces use among women. |
| Keywords: | access to finance; refugees; gender; digital technology; currencies; finance; mobile phones; Ethiopia; Eastern Africa; Africa |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:162765 |
| By: | Vlaicu, Razvan |
| Abstract: | Digital payments have increasingly been adopted by consumers and firms in Latin America and the Caribbean. This policy research paper analyzes recent post-pandemic data on digital payments in the region to describe adoption patterns, measure adoption gaps, and identify adoption barriers. The data reveal a positive trend in the use of financial accounts for receiving wages, and of payment apps and digital wallets for purchases in-person and online. Despite increased average adoption, sizable gaps remain both between countries and within countries. At the consumer level, factors associated with delayed adoption include low income, old age, indigenous status, and rural location. At the firm level, factors include small size, retail sector, and limited credit access. Four types of adoption barriers appear to be important: technological, economic, informational, and behavioral. These observations are supported with detailed microdata from Mexico. The paper proposes policy solutions for achieving digital payments inclusion of vulnerable consumers and firms. |
| Keywords: | digital payments;Adoption gaps;Adoption barriers;Financial inclusion |
| JEL: | D18 G23 G50 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14151 |
| By: | Abdul Khaliq |
| Abstract: | This study measures the impact of COVID-19 outbreaks on financial technology (FinTech) lending in Indonesia. Using monthly FinTech data published by Financial Services Authority (OJK) over the period 2018M02-2021M04, the article examines the impact of COVID-19 started on March 2020 on FinTech by adopting an interrupted time series (ITS) experiment. The estimation shows that the COVID-19 outbreaks negatively affect changes in FinTech lending level in Indonesia, but the changes in the trend are positive. Moreover, the COVID-19 has been found to have a negative and statistically significant effect on the 90-day success loan settlement rate level. However, COVID-19 has positive and statistically significant effects on the 90-day default rate of loan repayment level. These estimation results recommend that the financial services authority of Indonesia should intensively promote various innovative financial technology (FinTech) lending post-COVID-19 to increase digital financial inclusion by providing peer to peer lending (P2P) to unbanked populations. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.06655 |
| By: | Elena Falcettoni; Vegard Nygaard |
| Abstract: | We propose a new way to classify individuals without a bank account, accounting for their actual interest in being banked. Analogous to how unemployment statistics are defined and estimated, we differentiate the individuals that do not have a bank account and would like to have one (the “unbanked”) from individuals that do not have a bank account and are not interested in having one (the “out of banking population”). Using FDIC data, we show the evolution over time of these new measures and show that the two groups differ in policy-relevant ways. While the unbanked mostly cite financial and past credit or banking history problems as reasons for not having a bank account, the out of banking population cites a growing mistrust toward the traditional banking system. Policymakers should consider these factors when designing policies aimed at increasing financial inclusion. |
| Keywords: | FDIC; Banking; Checking Fintech; Financial inclusion |
| Date: | 2025–05–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-33 |
| By: | Mana KANEKO; Katsushi SUZUKI |
| Abstract: | This paper analyzes the evolution of adoption and rejection patterns of robo-advisor services in Japan using panel survey data collected by the Japan Securities Dealers Association from 2017 to 2023, following the initial market introduction of these services. The empirical results show that demographic and socioeconomic characteristics—such as age, residential location, personality traits, and income—associated with adopters and active rejecters changed significantly over time. In contrast, individuals with high financial literacy exhibited stable adoption or rejection behavior, unaffected by time trends. These findings are consistent with the predictions of Rogers' diffusion of innovations theory and contribute to the literature by offering new insights into the determinants of robo-advisor usage. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25050 |
| By: | Guglielmo Barone; Annalisa Loviglio; Denni Tommasi |
| Abstract: | Digital skills are increasingly essential for full participation in modern life. Yet many low-income families face a dual digital divide: limited access to technology and limited ability to use it effectively. These gaps can undermine adults' ability to support their children's education, restrict access to public services, and reduce their own employability. Despite growing policy attention, rigorous evidence on how to close these gaps - especially among disadvantaged adults in high-income countries - remains scarce. We evaluate the impact of a comprehensive digital inclusion program in Turin, Italy, targeting 859 low-income families with school-aged children. Participants were randomly assigned to a control group or one of two treatment arms, each combining a free tablet with internet access and digital literacy training of different durations. One year later, treated participants reported large improvements in digital skills and daily technology use. Parents also became more confident in guiding their children's online activities, more engaged in digital parenting, and more likely to access public services digitally. We find no short-run effects on employment or job search behavior, but treated participants expressed greater optimism about future training prospects. Effects are statistically similar across the two training intensities, suggesting that once basic barriers are removed, digital engagement can become self-sustaining. Mediation analysis confirms that digital skills - not just access - are key drivers of these outcomes. Sequential effects are particularly strong in the domains of social inclusion and parenting. The findings underscore the importance of addressing both financial and learning constraints and suggest that bundled interventions can foster inclusive digital participation. |
| JEL: | I24 J24 O33 C93 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1205 |
| By: | Fahmida Khatun; Muntaseer Kamal; Foqoruddin Al Kabir; Preetilata Khondaker Huq |
| Abstract: | In today’s world, technology plays a pivotal role in shaping economic activities by driving growth in both industrial and service sectors. Digital literacy has the potential to empower youth and women by providing access to education, economic opportunities, and social participation, thus fostering a more inclusive society. |
| Keywords: | technology empowerment, digital literacy, youth empowerment, women empowerment, digital skills development, inclusive growth, social participation, industrial growth |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:69 |
| By: | J. Ignacio Giménez-Nadal (University of Zaragoza); José Alberto Molina (Departamento de Análisis Económico, Universidad de Zaragoza); Jing Jian Xiao (University of Rhode Island, Kingston) |
| Abstract: | This study examines how individuals in the US allocate time to financial activities and how these activities relate to their well-being. Using data from the American Time Use Survey (ATUS), we find that financial tasks occupy a minimal share of daily time—averaging just 8.3 minutes— yet are associated with elevated stress and low happiness. Despite their negative emotional valence, financial activities are perceived as meaningful. Regression analyses reveal that time spent on financial tasks increases with education and income, and varies by gender, employment status, and race. Fur- thermore, affective experiences during financial activities differ significantly across sociodemographic lines: men and older individuals report more negative emotions, while higher education is linked to improved emotional outcomes. These findings allows us to test several hypothesis proposed in previous finantial research, and highlight the cognitive and emotional demands of everyday financial management. |
| Keywords: | Financial behavior, financial literacy, time use data, instant feelings. |
| JEL: | D14 |
| Date: | 2025–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:boc:bocoec:1089 |
| By: | Sukru Selim Calik; Andac Akyuz; Zeynep Hilal Kilimci; Kerem Colak |
| Abstract: | Financial literacy is increasingly dependent on the ability to interpret complex financial data and utilize advanced forecasting tools. In this context, this study proposes a novel approach that combines transformer-based time series models with explainable artificial intelligence (XAI) to enhance the interpretability and accuracy of stock price predictions. The analysis focuses on the daily stock prices of the five highest-volume banks listed in the BIST100 index, along with XBANK and XU100 indices, covering the period from January 2015 to March 2025. Models including DLinear, LTSNet, Vanilla Transformer, and Time Series Transformer are employed, with input features enriched by technical indicators. SHAP and LIME techniques are used to provide transparency into the influence of individual features on model outputs. The results demonstrate the strong predictive capabilities of transformer models and highlight the potential of interpretable machine learning to empower individuals in making informed investment decisions and actively engaging in financial markets. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.06345 |