Enhancing financial literacy in South Korea: Integrating AI and data visualization to understand financial instruments’ interdependencies

Abstract

In South Korea, the lack of understanding of financial products has emerged as a significant challenge, contributing to a gap in financial literacy. This research proposes a novel approach to bridge this gap by employing statistical interdependence and explainable AI (xAI) to enhance comprehension of the interconnectedness of economic variables. By translating complex financial information into intuitive visual formats, the methodology empowers individuals to make informed decisions. Collaborations with South Korean financial institutions ensure alignment with local practices and regulations. Preliminary testing indicates promising results in improving financial literacy, mainly related to financial products. The study offers valuable insights for addressing financial literacy challenges in South Korea and potentially beyond, emphasizing the role of technology and collaboration in fostering financial understanding and economic stability. It sets the stage for future research and policy interventions to enhance financial literacy in a technologically advanced society.