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on Financial Literacy and Education |
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Issue of 2026–01–19
eight papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Ozili, Peterson |
| Abstract: | This study investigates the effect of inflation on the accessibility dimension of financial inclusion across 61 countries. The consumer price index and the GDP implicit price deflator are used as measures of inflation. Four accessibility indicators of financial inclusion are used which are the composite financial inclusion index, the number of bank depositors, ATM penetration and the number of bank branches. Using the median quantile regression and the two-stage least squares regression methods, the findings reveal that inflation has a positive effect on financial inclusion in European countriaes. A one percent increase in inflation leads to at least a 0.05 percent increase in financial inclusion in Europe. A negative but insignificant effect was found in African, Asian and the Americas countries. The moderation analysis shows that banking sector stability does not weaken the adverse effect of inflation on financial inclusion in African countries, but a high loan-to-deposit ratio in the banking sector weakens the adverse effect of inflation on financial inclusion and accelerates financial inclusion in a high inflation environment in African countries. In the individual mechanism analysis, we find that inflation decreases the number of bank depositors in the Americas and increases the number of bank depositors in European countries. High inflation decreases financial inclusion through a decrease in the number of bank branches in African and European countries. The implication of the findings is that inflation adversely affect financial inclusion, and the effect depend on the financial access indicator being examined. Policymakers need to identify the financial access indicators that are worst hit by rising inflation, and they should explore how monetary policy tools can reduce inflation persistence without decreasing the level of financial inclusion. |
| Keywords: | inflation, financial inclusion, quantile regression, bank stability, efficiency, loan-to-deposit ratio, financial inclusion index. |
| JEL: | E31 E51 E52 E58 G21 G23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127369 |
| By: | Schilirò, Daniele |
| Abstract: | This study explores the transformative role of financial technology (FinTech) within the broader context of innovation ecosystems and its interconnections with financial inclusion. Financial technology has grown significantly in recent years. It encompasses sectors such as digital payments, blockchain, artificial intelligence, regulatory technology and insurance technology, reshaping the operational dynamics of financial systems, improving efficiency, competition, and transparency. In turn, the rapid adoption of data-intensive technologies introduces new regulatory and ethical challenges. Following an approach based on an examination of scientific literature the study first emphasizes the need to move beyond a technology-centric view and adopt an ecosystem-oriented perspective. This view highlights the interaction between technological advances, institutional frameworks, and market structures, as well as their impact on innovation. The analysis also shows that global connections and collaborations within FinTech ecosystems favor the development and diffusion of new innovations. Furthermore, FinTech and its ecosystem promote financial inclusion by reducing barriers to entry, making access to services affordable, and tailoring solutions to diverse customer needs. This benefits disadvantaged and underbanked populations, thereby expanding economic participation and reducing inequality. Given that current literature does not explicitly highlight the interrelationship among FinTech, innovation ecosystems, and financial inclusion, this study — without pretending to be exhaustive — underscores their interconnection. It demonstrates how collaborative technological innovation can expand access to financial services, despite the challenges and problems that remain to be solved. The article concludes that financial technology should be understood as a systemic force with profound implications for economic transformation, regulatory adaptation, the democratization of access, and the reduction of inequality. |
| Keywords: | Fintech; digital technologies; financial inclusion; innovation ecosystems; technological innovation; regulation |
| JEL: | F30 G2 G32 O31 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127045 |
| By: | Elizabeth Irenne Yuwono; Dian Tjondronegoro; Shawn Hunter; Amber Marshall |
| Abstract: | Financial exclusion remains a major barrier to digital public service delivery in resource-constrained and archipelagic nations. Traditional policy evaluations rely on retrospective data, limiting the ex-ante intelligence needed for agile resource allocation. This study introduces a predictive simulation framework to support anticipatory governance within government information systems. Using the UNCDF Pacific Digital Economy dataset of 10, 108 respondents, we apply a three-stage pipeline: descriptive profiling, interpretable machine learning, and scenario simulation to forecast outcomes of digital financial literacy interventions before deployment. Leveraging cross-sectional structural associations, the framework projects intervention scenarios as prioritization heuristics rather than causal estimates. A transparent linear regression model with R-squared of 95.9 identifies modifiable policy levers. Simulations indicate that foundational digital capabilities such as device access and expense tracking yield the highest projected gains, up to 5.5 percent, outperforming attitudinal nudges. The model enables precision targeting, highlighting young female caregivers as high-leverage responders while flagging non-responders such as urban professionals to prevent resource misallocation. This research demonstrates how static survey data can be repurposed into actionable policy intelligence, offering a scalable and evidence-based blueprint for embedding predictive analytics into public-sector decision-support systems to advance equity-focused digital governance. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.12212 |
| By: | Paul David Richard Griffiths (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Abhishek Mukherjee (University of Waikato [Hamilton]); Paresha N Sinha (University of Waikato [Hamilton]) |
| Abstract: | Purpose -This study aims to investigate the diffusion of financial technology (Fintech) in Vietnam by applying a service ecosystem perspective. It reconsiders traditional innovation diffusion approaches by focusing on the interplay of services, institutions and ecosystem dynamics across distinct Fintech service domains. Design/methodology/approach -This study employed a qualitative approach using the Knowledge Cafe method for data collection. Transcripts were coded and analysed thematically across different diffusion phases. Findings were validated through a half-day workshop with banking professionals. Findings -Government regulation in Vietnam has enhanced trust within the Fintech ecosystem, driving digital transactions and financial inclusion. However, as the regulations are heavily focused on the payment services, an uneven diffusion of innovation across the seven Fintech service domains is evident. Practical implications -Regulation can accelerate Fintech diffusion in early stages, as seen in Vietnam's payments sector, but may hinder innovation as technologies mature. Policymakers must adapt regulatory frameworks to balance stability with ongoing innovation. Originality/value -This study advances theory by analysing Fintech diffusion by service domain rather than as a unified sector and by extending the innovation diffusion theory to an emerging market context. Applying a service ecosystem lens reveals the multi-level dynamics shaping Fintech adoption, offering a more nuanced understanding across domains. |
| Keywords: | Vietnam, Innovation diffusion, Fintech, Financial services, Emerging market institutions |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05398969 |
| By: | Feldman, Paul; Lee, Siun |
| Abstract: | Myopic loss aversion (MLA)—the tendency to "chase losses"—is a well-documented behavioral bias influencing investment decisions. However, whether groups amplify or mitigate this bias remains unclear. To investigate, we conducted an investment game where participants made decisions both individually and in groups under two conditions: "paper losses" (losses recorded prior to cash-out) and "realized losses" (Imas, 2016). Consistent with prior literature, we replicated the finding that individuals exhibit MLA. More importantly, our experimental evidence shows that group decision-making can intensify MLA rather than alleviate it. By analyzing group conversations with an LLMassisted approach, we identified key social mechanisms—rapid consensus formation, emotional contagion, and a shift toward risk-seeking behavior—that amplify these biases. These findings are significant because they reveal how group dynamics can undermine sound financial decision-making, emphasizing the need for financial literacy programs that address groupthink, shared biases, and emotional contagion and promote structured decision-making frameworks. |
| Keywords: | Labor and Human Capital |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361193 |
| By: | Soukaina Nadir (Faculté des sciences juridiques économiques et sociales Ain Chock Université HASSAN II – Maroc); Fatima Zahra El Arif (Faculté des sciences juridiques économiques et sociales Ain Chock Université HASSAN II – Maroc) |
| Abstract: | Abstract In a global context marked by financial, social, and environmental crises, the search for alternative and sustainable financial models has become a pressing priority. This article provides a systematic review of the literature on Islamic finance to assess its contribution as an ethical and sustainable financial model. Through the analysis of 62 peer-reviewed articles published between 2010 and 2024, the study explores the foundations, instruments, areas of application, and limitations of Islamic finance in addressing contemporary global challenges. The methodological approach follows the PRISMA protocol, using a structured selection process based on established academic databases (Scopus, Web of Science, ScienceDirect). The analysis highlights key themes, including Islamic finance's alignment with universal ethical principles, its role in fostering financial inclusion and social impact projects, and its progressive convergence with ESG standards. Findings indicate the growing relevance of Islamic financial instruments "such as green Sukuk, Takaful, and productive Waqf" in supporting responsible and sustainable development initiatives. However, challenges remain in areas such as regulatory standardization, governance, and global visibility. The study concludes that beyond its religious origins, Islamic finance has the potential to serve as a strategic driver for ethical financial transition, provided its frameworks for transparency, education, and innovation are strengthened. Keywords: Islamic finance, Sustainable finance, Ethical finance, Sustainable development, ESG |
| Abstract: | Résumé Dans un contexte mondial marqué par des crises financières, sociales et environnementales, la recherche de modèles économiques alternatifs et durables devient une priorité. Cet article propose une revue systématique de la littérature sur la finance islamique, afin d'évaluer sa contribution en tant que modèle financier éthique et durable. À travers l'analyse de 62 articles publiés entre 2010 et 2024, la recherche examine les fondements, les instruments, les champs d'application et les limites de la finance islamique face aux défis contemporains. La démarche méthodologique suit le protocole PRISMA, intégrant une stratégie de sélection à partir de bases de données académiques reconnues (Scopus, Web of Science, ScienceDirect). L'analyse des publications permet de faire émerger plusieurs axes majeurs : la capacité de la finance islamique à intégrer des principes éthiques universels, sa contribution à l'inclusion financière et au financement de projets à impact social ou environnemental, ainsi que sa convergence progressive avec les normes ESG. Les résultats mettent en évidence la pertinence croissante des instruments islamiques (Sukuk verts, Takaful, waqf productif) pour financer des projets responsables et durables. Toutefois, des défis persistent en matière de standardisation, de gouvernance et de reconnaissance internationale. La recherche conclut que la finance islamique, au-delà de sa dimension religieuse, peut constituer un levier stratégique pour une transition financière plus éthique, à condition de renforcer ses mécanismes de transparence, de formation et d'innovation. Mots clés : Finance islamique, finance durable, éthique, développement durable, ESG |
| Keywords: | Sustainable development, ESG, Ethical finance, Sustainable finance, Islamic finance, développement durable, éthique, finance durable, Finance islamique |
| Date: | 2025–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05355968 |
| By: | Yassine Zougari (University Ibn Toufail = Université Ibn-Tufayl = جامعة ابن طفيل, Laboratoire des Sciences Economiques et Politiques Publiques (LSEPP) Faculté d’Economie et de Gestion de Kénitra); Mounir El Bakkouchi (University Ibn Toufail = Université Ibn-Tufayl = جامعة ابن طفيل, Laboratoire des Sciences Economiques et Politiques Publiques (LSEPP) Faculté d’Economie et de Gestion de Kénitra) |
| Abstract: | This article investigates the impact of financial market development on economic growth in five African economies (Morocco, Egypt, Nigeria, South Africa, and Rwanda) during the period 2021–2024, focusing on the post-COVID-19 recovery phase. The literature review is based on a structured narrative review, drawing on 39 studies selected for their theoretical relevance and empirical robustness. The empirical study employs a panel dataset compiled from the World Bank, UNCTAD, and national stock exchanges. The relationship between stock market capitalization, trading volumes, foreign direct investment (FDI) inflows, a multidimensional financial development index, and real GDP growth is estimated primarily using a fixed-effects panel model, selected based on the Hausman test and estimated with robust standard errors. Additional GMM estimations are employed solely as robustness checks to assess the stability of the results and to address potential endogeneity issues. The findings reveal a positive and statistically significant effect of stock market depth and liquidity on economic growth. FDI inflows are identified as a key driver of the post-pandemic recovery, whereas inflation shows a negative and significant impact on economic performance. These results highlight the importance of deepening financial markets, promoting financial inclusion, and maintaining macroeconomic stability to fully leverage the role of finance in supporting sustainable and inclusive growth across African economies. |
| Abstract: | Cet article analyse l'impact du développement des marchés financiers sur la croissance économique dans cinq économies africaines (Maroc, Égypte, Nigeria, Afrique du Sud, Rwanda) sur la période 2021–2024, en se concentrant sur la phase de reprise post-COVID-19. La revue de littérature repose sur une revue narrative structurée, fondée sur une sélection de 39 études en fonction de leur pertinence théorique et empirique. L'étude empirique mobilise un panel de données issues de la Banque mondiale, de l'UNCTAD et des bourses nationales. La relation entre capitalisation boursière, volumes de transactions, flux d'investissements directs étrangers (IDE), indice de développement financier et croissance du PIB réel est estimée principalement au moyen d'un modèle de panel à effets fixes, sélectionnée à l'issue d'un test de Hausman et estimée avec des erreurs robustes. Des estimations complémentaires en GMM sont mobilisées uniquement à titre de tests de robustesse, afin de vérifier la stabilité des résultats et de traiter l'endogénéité potentielle. Les estimations montrent un effet positif et significatif de la profondeur et de la liquidité des marchés financiers sur la croissance économique. Les IDE apparaissent comme un levier majeur de relance, tandis que l'inflation exerce un effet négatif sur l'activité économique. Les résultats soulignent la nécessité d'approfondir les marchés financiers, de promouvoir l'inclusion financière et de maintenir la stabilité macroéconomique afin de maximiser l'impact de la finance sur la croissance durable en Afrique. |
| Keywords: | Africa, Economic growth, Post-COVID-19. JEL Classification : G10 O16 047 Financial markets, FDI, Panel data, Afrique, IDE, Panel de données, Croissance économique, Marchés financiers |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05441175 |
| By: | Aggarwal, Karan |
| Abstract: | Educational programs that aim to improve decision making and financial understanding are often designed around voluntary participation. The underlying assumption is that students who are interested, motivated, or capable will naturally choose to take part, allowing programs to identify talent and generate meaningful engagement. However, large scale evaluations of educational and financial literacy initiatives frequently report modest or uneven impact even when curriculum quality and institutional intent are strong. This raises a prior and less examined question: whether participation rules themselves influence who enters these programs and whose ability becomes visible. This paper examines how voluntary and mandatory participation structures shape selection, competition, and observed outcomes in school based decision making programs. The analysis draws on direct involvement in two contrasting initiatives conducted in an Indian secondary school between 2023 and 2025. The first was an eligibility based mandatory financial literacy program implemented through quizzes and structured group discussions. The second was a voluntary skill based competition that relied entirely on opt in participation. Rather than evaluating curriculum content or long term learning outcomes, the paper focuses on participation funnels, competition density, and patterns of performance that emerged under different institutional designs. Across both cases, participation appeared to impose non academic costs that varied significantly across students. These included fear of public underperformance, social exposure, and reputational risk. In the voluntary setting, students with low perceived cost of participation were more likely to opt in, while several capable students chose not to participate despite demonstrating skill in informal settings. As a result, competition was uneven and observed performance reflected the characteristics of those willing to enter rather than the underlying distribution of ability. In contrast, mandatory participation removed the initial decision to opt in and shifted attention toward performance once the activity began. Although not all participants were equally engaged, competition was deeper, outcomes were less predictable, and several strong performers emerged from students who had not previously been identified as high achievers. The comparison suggests that voluntary participation can unintentionally select for visibility rather than ability, while mandatory participation within a defined group can reduce self selection bias and allow latent capability to surface. This does not imply that compulsory participation is universally preferable or that motivation is irrelevant. Instead, it highlights how assumptions about rational self selection can fail in real educational contexts where social dynamics and perceived costs shape behavior. |
| Date: | 2026–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:edarxi:qmnfb_v1 |