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on Financial Literacy and Education |
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Issue of 2025–07–14
five papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Ozili, Peterson K |
| Abstract: | This study examines the effect of CO2 emissions from gaseous fuel consumption on financial inclusion through physical financial access points in non-crisis years. The findings reveal that higher CO2 emissions are associated with a high level of financial inclusion in European, Asian and developing countries, implying that CO2 emissions do not decrease the level of financial inclusion. CO2 emissions decrease the level of financial inclusion in African countries that have strong institutions and a high lending rate. CO2 emissions also decrease the level of financial inclusion in developing countries that have a high lending rate. The implication is that policymakers and banks in European, African and Asian countries should reduce their reliance on physical financial access points to increase financial inclusion. They should adopt digital financial inclusion strategies to mitigate the adverse effect of CO2 emissions on the physical financial access points provided by banks to increase financial inclusion. |
| Keywords: | climate change, CO2 emissions, financial inclusion, institutional quality, inflation, interest rate, financial access points, bank branch, ATM, Africa, Asia, Europe, developing countries. |
| JEL: | G21 Q01 Q50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125032 |
| By: | Ozili, Peterson K |
| Abstract: | Artificial intelligence (AI) is rapidly growing with new use cases emerging every day. AI has many applications in the financial sector. It has applications for risk management, fraud detection, efficiency, cost savings and improved customer experience. However, its applications for digital financial inclusion and development finance are yet to be explored in the literature. This study explores how artificial intelligence can be used to increase digital financial inclusion. Specifically, the study explores the potential for AI to streamline the operations of agents of digital financial inclusion; determine the communal areas in need of digital financial inclusion; automate the digital formal account opening process; offer customized experience for both banked and unbanked adults; ensure security and safety of customers’ funds; determine the credit worthiness of unbanked adults who have recently become banked; give banked adults full control of their financial lives; deepen digital financial inclusion; and promote equity and diversity for digital financial inclusion. The study also identifies the challenges of AI for digital financial inclusion. It further presents some insights on the possible AI governance frameworks for digital financial inclusion. The insights offered in this study are useful to guide countries and policymakers that want to use AI to accelerate digital financial inclusion. |
| Keywords: | Artificial intelligence, financial inclusion, digital financial inclusion, AI algorithm, digital technology, unbanked adults, machine learning. |
| JEL: | O30 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125033 |
| By: | Maria Elena Filippin |
| Abstract: | This paper examines how household-targeted government policies influence financial market participation conditional on financial literacy, focusing on potential Central Bank Digital Currency (CBDC) adoption. Due to the lack of empirical CBDC data, I use the introduction of retail Treasury bonds in Italy as a proxy to investigate how financial literacy affects households' likelihood to engage with the new instrument. Using the Bank of Italy's Survey on Household Income and Wealth, I explore how financial literacy influenced households' participation in the Treasury bond market following the 2012 introduction of retail Treasury bonds, showing that households with some but low financial literacy are more likely to participate than other household groups. Based on these findings, I develop a theoretical model to explore the potential implications of financial literacy for CBDC adoption, showing that low-literate households with limited access to risky assets allocate more wealth to CBDC, while high-literate households use risky assets to safeguard against income risk. These results highlight the role of financial literacy in shaping portfolio choices and CBDC adoption. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.12575 |
| By: | Luque, Alberto Munoz Najar; Gala, Priyal Mukesh; Barron Rodriguez, Maria Rebeca |
| Abstract: | The rapid expansion of the digital economy in Sub-Saharan Africa (SSA) presents opportunities and challenges in addressing the gender digital skills divide. This report analyzes comprehensive, genderresponsive policy approaches to bridge this gender divide and promote equitable access to digital skills and STEM education for girls and women. Drawing on global and regional case studies, this paper emphasizes the importance of integrating digital literacy into early education, promoting inclusive STEM participation, and supporting women’s transition into the labor market through targeted interventions such as scholarships, mentorship, vocational training, and entrepreneurship programs. The report also underscores the need for reforms that dismantle gender biases in curricula, improve access to digital infrastructure, and foster inclusive learning environments. It also highlights the role of public-private partnerships and community-based initiatives in scaling impact. The proposed policies aim to enhance girls and women economic empowerment, increase their participation in the digital economy, and contribute to inclusive and sustainable development across SSA. |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdgewp:203095 |
| By: | Ozili, Peterson K |
| Abstract: | The objective of this article is to present some of the current thinking and arguments about central bank digital currency (CBDC) from the perspective of those who have vested interests in central bank digital currency (CBDC) and from those who are opposed to CBDC. The article gives the reader an opportunity to reflect deeply about CBDC and to make their own opinion about CBDC based on the informed insights of others. From the collection of quotes, it was found that the concept of a central bank digital currency has come to stay, and many central banks want to issue a CBDC in the distant future. It was also found that, despite the efforts of central banks and pro-CBDC enthusiasts to publicise the benefits of a CBDC for citizens, many people continue to raise daunting questions about the potential for government overreach and surveillance, loss of competitive advantages for deposit-taking financial institutions, loss of privacy for citizens, and concerns that CBDC development is an unwholesome distraction for central banks, among other concerns. There is also a perceived negative sentiment about CBDC, and this sentiment is unlikely to change anytime soon. |
| Keywords: | central bank, CBDC, central bank digital currency, wholesale CBDC, retail CBDC, financial stability, financial crisis, financial inclusion, payments. |
| JEL: | E52 E58 E59 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124263 |