Consumer Financial Knowledge and the Use of Mobile Banking: Evidence from the 2018 U. S. National Financial Capability Study

Abstract

As a widely used technology in recent years, the use of mobile banking has been addressed by a great deal of extant research, and a large and growing body of literature has investigated its determinants as well. Utilizing data from the 2018 U.S. National Financial Capability Study, this study aims at examining the association between financial knowledge and mobile banking by using the approach of ordered probit regression. Besides, this study conducts a comprehensive robustness check by replacing estimation methods and removing outliers by income. The results indicate that the relationship between financial knowledge and mobile banking is negative. Besides, financial knowledge negatively contributes to the adoption of mobile payment as well as mobile transfer. Also, consumers with more financial knowledge are more likely to use traditional financial ways. Thus, financial institutions are encouraged to focus on the reduction of risks perceived by consumers to promote the penetration of financial services via mobile devices.