Financial Literacy Research Articles

Financial Technology, wealth Threshold, and Wealth Inequality in China

This study developed a theoretical model to examine the impact of financial technology (fintech) on wealth inequality from a wealth threshold perspective. The model's numerical simulation results suggest that fintech exerted an inverted U-shaped impact on wealth inequality. Empirical test results based on China Household Finance Survey panel data and fintech index data confirmed this finding. The impact varied across regions and among groups with differing education levels and financial literacy.

Exploring financial graph literacy: determinants and influence on financial behavior

Purpose Graphs are widely used in the banking and finance domain to support consumers’ decision-making process, but subjects differ in their ability to understand them. This study aims to detect the determinants of the ability to read and process financial information conveyed in the graphical format, i.e. financial graph literacy (FGL) and the relationship between FGL and subjects’ actual financial behavior (FB). Design/methodology/approach Data are collected by administering a structured questionnaire to the Italian adult population (n = 502). The survey includes different sections aimed at collecting information about sociodemographic and socioeconomic variables, financial literacy and FB. The econometric analyses are developed using OLS and Poisson regressions. Findings The results show that gender, geographical area, education, marital status and income are crucial determinants of FGL. Moreover, the analysis reveals that an increase in the FGL indicator is associated with a higher propensity for individuals to purchase banking or financial products or actively manage financial resources; results are robust, even controlling for financial knowledge. Originality/value Although previous research investigates the impact of graphs in financial decision-making, no studies measure the ability of consumers to read and interpret financial information conveyed in the graphical format. This study is the first to investigate the determinants of FGL and link it to actual FB. Implications for policymakers, regulatory and supervisory authorities and financial intermediaries are discussed.

Leaving No One Behind: Examining the effect of financial, gender, and digital inclusion on sustainable development

AbstractThis paper analyzes the effects of different dimensions of inclusion toward the attainment of sustainable development in 33 sub‐Saharan African (SSA) countries from the financial, gender, and technological perspectives between 2004 and 2021. This study employs the System Generalized Method of Moments given its ability to address potential endogeneity issues, capture the dynamic nature of relationships, and mitigate potential biases while adopting the Driscoll–Kraay standard errors for robustness check. Findings reveal two of the three measures of financial inclusion wield positive and significant effects on sustainable development while credit to the private sector is found to be detrimental. Also, all three measures of gender inclusion (female employment to population, female labor force participation rate, and the number of women holding a seat in parliament) positively influence sustainable development. Contrastingly, the coefficients of digital inclusion (mobile phone subscription and internet usage) were revealed to be harmful to sustainable development in SSA. This paper advocates for increased financial inclusion through financial literacy, customized financial products, and gender‐sensitive financial services. Pertinent are gender policies that address gender norms in addition to the enactment, avowed commitment, and support for affirmative action toward closing gender gaps across all sectors and at all levels.

Evaluating robo-advisors through behavioral finance: a critical review of technology potential, rationality, and investor expectations

The mini review assesses the value propositions of robo-advisors through the lens of behavioral finance. Despite their promise of data-driven, rational investment strategies, robo-advisors may not fully replicate the personalized service of human financial advisors or eliminate human biases in decision-making. A content analysis of 80 peer-reviewed articles and publications was conducted, focusing on the intersection of financial technology and behavioral finance. Literature was retrieved using The Chicago School University Library's OneSearch and the EBSCO host database, with key terms including “robo-advisor,” “investment behavior,” “risk tolerance,” “financial literacy,” and “affective trust.” The review identifies four key limitations of robo-advisors: (1) their inability to replicate the service-relationship of human advisors; (2) the presence of human bias in supposedly rational algorithms; (3) the inability to minimize market risk; and (4) their limited impact on improving users' financial literacy. Instead, robo-advisors temporarily compensate for a lack of financial knowledge through passive investment strategies. The findings suggest that integrating behavioral finance principles could enhance the predictive power of robo-advisors, though this would introduce additional complexities. The review calls for further research and regulatory measures to ensure that these technologies prioritize investor protection and financial literacy as they continue to evolve.

Adoption of Cryptocurrencies as a Means of Exchange

This study examines the determinants impacting the adoption of cryptocurrencies for exchange. Through a quantitative approach, data from 104 respondents were gathered via an internet-based survey. Employing a Likert scale, the study examined the relationship between financial literacy, perceived usefulness, perceived ease of use, and willingness to adopt cryptocurrencies. Results revealed that financial literacy did not directly correlate with the willingness to adopt cryptocurrencies, while perceived usefulness and ease of use exhibited a positive association with adoption. Notably, the present study highlighted the reliance on perceived financial literacy rather than actual levels. It emphasized the necessity of improving the accessibility and applicability of cryptocurrencies to encourage their adoption. The implications of this study are pertinent to policymakers and businesses venturing into cryptocurrency integration. Understanding the influencers of cryptocurrency adoption, especially perceived utility and ease of use, can inform strategic approaches to foster adoption of cryptocurrencies.

Evaluation of the Impact of Economic Empowerment Initiatives on Poverty Alleviation among Youth and Women's Groups: A Case Study of the Arusha Region, Tanzania

Globally, the Women and Youth Development Fund, channeled through women's groups, has played a crucial role in fostering economic empowerment for women and youth. In Tanzania, population growth has introduced both opportunities and challenges, with a significant issue being the rise in unemployment and poverty, particularly among women and youth. To address these challenges, the Women, Youth, and People with Disabilities Revolving Fund (WYDF) was established within Local Government Authorities (LGAs) to provide accessible loans to the poor, who are often excluded from conventional financial institutions. This study investigates the effectiveness of economic empowerment initiatives in alleviating poverty among youth and women's groups in the Arusha Region, Tanzania. Specifically, it examines the impact of start-up capital provision, financial literacy training, and business capacity-building on poverty reduction. The study employed a survey research design with a quantitative approach, collecting data from 95 respondents through questionnaires. Purposive sampling was used to select the sample. The data were analyzed using descriptive statistics and SPSS software, with regression analysis employed to explore the relationships between variables influencing poverty reduction among the targeted groups. The findings reveal that start-up capital provision, financial literacy training, and business capacity-building significantly contribute to poverty reduction among youth and women's groups. The study recommends enhanced financial literacy programs to enable entrepreneurs to save and accumulate sufficient capital for business investments. Additionally, the government, through youth and women empowerment programs, should continue providing training, particularly to those without technical skills, focusing on new production techniques, efficient fund allocation, and marketing strategies to ensure sustainable impacts.

Exploring the Impact of Employee Motivation on Investment Decisions: - A Study of Factors Influencing Mutual Fund Investment Among Corporate Employee

This study explores the impact of employee motivation on investment decisions, specifically focusing on the factors influencing mutual fund investments among corporate employees. As financial literacy and investment participation grow, understanding the underlying motivations that drive investment choices is crucial for both individuals and financial institutions. Utilizing a mixed-methods approach, we conducted surveys and in-depth interviews with corporate employees across various sectors. The findings reveal that intrinsic motivations, such as personal financial goals and career advancement, significantly influence mutual fund investment decisions. Additionally, extrinsic factors, including company-sponsored financial education programs and peer influence, play a critical role in shaping employees' investment behaviors. Our analysis indicates that motivated employees are more likely to engage in proactive financial planning and make informed investment choices. We also identified barriers such as risk aversion and lack of confidence in investment knowledge that hinder mutual fund participation. The implications of this study suggest that organizations should enhance employee motivation through targeted financial education initiatives and create a supportive investment culture. By doing so, companies can not only improve employee financial well-being but also foster a more engaged and motivated workforce. This research contributes to the existing literature on employee motivation and investment behavior, offering insights for corporate stakeholders and financial advisors aiming to enhance mutual fund investment strategies among employees.

Assessing Awareness and Understanding of Gold ETFs Among Residents of Amravati City

This study investigates the level of awareness and understanding of Gold Exchange-Traded Funds (ETFs) among citizens of Amravati City. As a modern investment option, Gold ETFs offer a convenient and secure method for individuals to invest in gold without the physical burden of ownership. Despite their growing popularity, awareness of Gold ETFs remains limited, particularly in smaller urban areas. Using a quantitative approach, this research collects primary data through surveys to evaluate knowledge, perceptions, and investment intentions regarding Gold ETFs among local residents. The findings aim to inform stakeholders about existing gaps in awareness and suggest strategies for enhancing financial literacy and investment participation.

Women's Empowerment through Islamic Microfinancing Initiatives for Microenterprises

Women's empowerment has increasingly been recognized as a critical component of sustainable economic development. Islamic microfinancing initiatives have emerged as a promising mechanism to support women's financial activities, particularly in Muslim-majority communities. Islamic microfinance is differentiated from conventional microfinance by emphasizing risk-sharing and commitment to social justice. This study explores the pivotal role of Islamic microfinancing initiatives in empowering women. The study adopts a conceptual framework that integrates various dimensions of empowerment such as economic, social, and psychological. By analyzing key factors such as loan amount, loan tenure, financial literacy support, support networks, age and sector of microenterprise, entrepreneurial experience, education level, and household income, this study aims to assess the impact of these initiatives on women's empowerment. Moreover, it is anticipated to offer valuable perspectives on the efficacy of Islamic microfinancing as a means to empower women. Furthermore, the findings are expected to guide policymakers and practitioners in designing and implementing more effective microfinancing programs that address the specific needs of women, thereby contributing to broader socio-economic progress.

Treatment Options for Plantar Fasciitis: Surgical Release vs. Conservative Therapy

Introduction Plantar fasciitis is one of the most common reasons for visits to orthopedic clinics. This tendinopathy can cause medial heel pain, stiffness, and tenderness on the plantar surface of the foot. Both conservative and surgical methods are employed in its treatment. Aim The aim of this study is to evaluate selected conservative treatment methods, such as stretching, the use of orthotic insoles, splints, injections, extracorporeal shockwave therapy, and taping, as well as surgical treatment options. The study presents a comparison of these methods in terms of their effectiveness, advantages, and disadvantages. State of Knowledge The plantar fascia is a stiff, connective tissue structure extending along the plantar surface of the foot. Biomechanical load on the fascia, which supports the medial longitudinal arch, can lead to degenerative changes that underlie plantar fasciitis. Symptoms include pain, particularly in the mornings and late evenings, which intensifies with palpation of the heel area. Summary (Conclusions) Conservative treatments for plantar fasciitis are effective in 90% of patients. There are no studies that conclusively demonstrate the superiority of one treatment method over another. Thus, the choice of therapy should be tailored to the patient's lifestyle, activity level, and financial capability. Surgical intervention is necessary in cases of chronic plantar fasciitis which remains resistant to conservative treatments.

Teaching Justice-Involved Adolescents Basic Financial Literacy Skills: A Preliminary Investigation

Teaching Justice-Involved Adolescents Basic Financial Literacy Skills: A Preliminary Investigation

The Impact of Financial Literacy, Inclusion, and Access on Msme Growth and Welfare in North Sumatra: A Mediating Role of Business Growth

This study examines the impact of financial literacy, financial inclusion, and financial access on the growth and welfare of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra, Indonesia, with business growth acting as a mediating factor. Using a quantitative research design and Structural Equation Modeling (SEM) analysis, data were collected from 306 MSME operators selected via purposive sampling. The findings reveal that while financial literacy does not have a significant direct effect on MSME growth and welfare, both financial inclusion and financial access significantly enhance business growth and welfare. Furthermore, business growth serves as a mediating variable, amplifying the positive effects of financial inclusion and access on MSME welfare. The results indicate that MSMEs benefit from better access to formal financial services, such as credit and insurance, which facilitates business expansion and improves the overall welfare of business owners. However, the lack of significant impact from financial literacy suggests that practical financial education initiatives should be paired with improved access to capital and market opportunities. This study highlights the need for integrated policy efforts to enhance financial literacy, expand financial inclusion, and provide easier access to credit to foster MSME growth and welfare in North Sumatra.

Financial Inclusion and Rural Development: Empowering Micro-entrepreneurs in Lubuk Beringin, Bungo Regency, Jambi, Indonesia

Micro-entrepreneurs in rural Indonesia often face challenges in accessing financial services and developing sustainable business practices. This community service initiative aimed to empower micro-entrepreneurs in Lubuk Beringin, Bungo Regency, Jambi, Indonesia, by promoting financial inclusion and rural development. A mixed-methods approach was employed, incorporating surveys, focus group discussions, and in-depth interviews to assess the needs and challenges of micro-entrepreneurs. Based on the findings, a comprehensive program was designed and implemented, encompassing financial literacy training, business development workshops, and access to microcredit facilities. The program resulted in increased financial literacy, improved business skills, and enhanced access to financial resources among the participants. Data indicates a 20% increase in average monthly income and a 15% rise in business savings among participating micro-entrepreneurs six months after program completion. Additionally, the program fostered a sense of community and collaboration among the participants. This initiative demonstrates the vital role of public administration in empowering micro-entrepreneurs through financial inclusion and rural development strategies. By providing access to financial knowledge, skills, and resources, public administration can contribute to sustainable economic growth and improved livelihoods in rural communities.

The social ledger: qualitatively decoding interaction-driven investment decisions among Indian investors and fund managers

Purpose This study aims to investigate the antecedents of social interaction among Indian retail investors and fund managers to understand how these factors influence investment decisions. By identifying and examining these antecedents, the study aims to shed light on the social dynamics that shape investment behavior in the Indian financial market. Design/methodology/approach The researchers have mainly adopted an interpretive strategy for the present study. Qualitative data elicited through semistructured interviews with six retail investors and two fund managers were subjected to qualitative thematic analysis. Findings Our research found several factors that make Indian retail investors and fund managers connect and make financial decisions. Peers can improve a person’s investing performance through social facilitation, and discussing investment suggestions and lessons learned can affect a group’s investment behavior. Social norms also influenced investors’ financial decisions, demonstrating compliance. Investor closeness increased information sharing. Finally, the fear of missing out (FOMO), a psychological phenomenon where people fear missing out on rewarding experiences, encouraged social engagement as investors sought appealing prospects. Research limitations/implications The researchers interviewed eight carefully selected interviewees across the divide between retail investors and fund managers. Adopting other grouping criteria, conducting a focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviors of Indian retail investors and fund managers. Practical implications The findings have far-reaching consequences, from deepening our knowledge of investors’ motivations and actions to directing individual savers, informing the development of financial literacy initiatives, influencing fund management practices and inspiring additional research in this study area. Originality/value This research, including retail investors and fund managers, significantly contributes to the literature on investment decisions and behavioral finance, particularly in the context of Indian investors and managers. This study’s unique perspective and comprehensive approach make it a valuable addition to the field, sparking interest and further exploration among academics, practitioners and investors alike.

Psychological Determinants of Investment Decisions: Analyzing Financial Behavior in Personal Investments

Understanding the psychological factors that influence investor behavior is critical in the dynamic world of financial markets. Financial conduct encompasses the decisions and behaviors individuals exhibit in managing their finances, including investments in various asset classes. Factors such as risk tolerance, cognitive biases, emotional influences, and financial knowledge significantly shape investment outcomes. Gaining long-term financial success requires mastery over these behavioral aspects. This study investigates the influence of three psychological factors—information asymmetry, problem framing, and risk propensity—on the investment decisions of 220 active investors trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). A quantitative research approach was employed, utilizing a structured questionnaire to collect data. Statistical analyses, including regression and correlation analysis, were used to assess the relationships between these psychological variables and investment behaviors. The results reveal significant correlations between psychological factors and investment decisions. Information asymmetry, problem framing, and risk propensity were found to strongly influence individual investor choices. These findings shed light on the intricate role that cognitive biases and psychological processes play in shaping financial decision-making. The study's findings offer valuable insights into the psychological drivers behind investment behavior. By highlighting the impact of these factors, the research contributes to both academic understanding and practical applications for financial professionals. The results underscore the importance of enhancing financial literacy and investor education, enabling more informed decision-making and promoting improved financial outcomes.

Factors Affecting Stock Investment by Individual Investors on the Indonesia Stock Exchange

This study aims to examine the factors that influence individual investors in investing in stocks on the Indonesia Stock Exchange. The factors studied and suspected of influencing individual investor decisions are financial literacy, risk perception and herding behavior. The study also examines the effect of financial literacy on risk perception. The population in this study were college students in Yogyakarta who had invested in the Indonesia Stock Exchange. Respondents were focused on students of the Islamic University of Indonesia with a total of 115 students taken using convenience sampling and snowball sampling techniques. To test the hypothesis, the researcher used a structural equation model analysis tool with the Smart PLS program. The results of the study indicate that financial literacy, risk perception have a positive effect on investment decisions. However, herding behavior does not affect investment decisions, while financial literacy also affects risk perception.

Navigating Time-Inconsistent Behavior: The Influence of Financial Knowledge, Behavior, and Attitude on Hyperbolic Discounting

Hyperbolic discounting is a psychological phenomenon in which individuals prioritize smaller immediate rewards over larger future rewards. Time-inconsistent behavior is deemed irrational as it negatively impacts savings and investment, investment in financial knowledge, and long-term financial and personal well-being. This study hypothesizes that improving financial knowledge, promoting positive financial behavior, and fostering a future-oriented financial attitude can mitigate hyperbolic discounting bias and that these three components of financial literacy enable investors to make long-term economic decisions maximizing utility. We analyzed the responses of 114,170 active investors in Japan to examine the interactions between financial knowledge, behavior, and attitude. Our findings reveal a strong negative relationship between these dimensions and hyperbolic discounting, underscoring their crucial role in shaping individuals’ intertemporal preferences. For researchers, our results highlight the need to integrate multidimensional aspects of financial literacy into investigations of intertemporal discounting behaviors. Policymakers should implement holistic financial education programs that improve knowledge, transform behavior, and shape attitudes. Financial institutions and advisors should prioritize programs that mitigate hyperbolic discounting tendencies among clients. This study represents a significant advancement in the research on financial literacy, offering a comprehensive framework for future studies and practical applications aimed at improving financial decision-making outcomes.

Strategies To Improve Financial Technology Literacy For Millennials And Generation Z

This study analyses the problems and priorities of strategies to improve financial technology literacy, especially among Millennials and Generation Z. This mixed method study uses the analytic network process (ANP) approach. The data sources used are primary and secondary data. Interviews, questionnaires, and literature carried out data collection techniques. Interviews and questionnaires were conducted with seven informants: one regulator, three academics, and three online loan users. The study results showed that the geometric mean determined the priority of fintech literacy problems. The prioritized aspects are the need for more public understanding of online loans, interest rates, and community needs. The priority strategy in improving fintech literacy among Millennials and Generation Z in Bengkalis Regency is to carry out Sharia literacy regarding online loans, regulate online loan interest rates, and reduce the community's need for online loans. Theoretically, this study strengthens the validity of the trade-off theory and provides new insights into strategies to improve fintech literacy. Practically, it contributes to providing strategies to improve fintech literacy for stakeholders.

Leveraging AI-Driven financial literacy and tax compliance solutions to foster economic growth in underserved communities and small businesses

Underserved communities and small businesses face significant challenges in financial literacy and tax compliance, both of which are critical to economic stability and growth. Limited access to financial education and the complexities of tax systems create barriers that hinder these groups from fully participating in the formal economy. This review explores the potential of leveraging artificial intelligence (AI) to address these challenges by providing innovative solutions that enhance financial literacy and simplify tax compliance. AI-driven platforms can offer personalized financial education, using machine learning algorithms to identify knowledge gaps and provide tailored resources to users. Through gamification and interactive tools, AI can make financial education more engaging and accessible, especially for individuals with limited formal education. Furthermore, AI-powered virtual assistants and chatbots can guide users through essential financial decisions, improving budgeting, credit management, and savings habits. In the realm of tax compliance, AI solutions can automate bookkeeping, tax filings, and other administrative tasks, reducing human error and lowering the compliance burden on small businesses. Predictive analytics can assist in tax planning by forecasting liabilities and helping businesses make informed decisions that minimize tax penalties and maximize cash flow. These advancements empower small businesses and entrepreneurs by enabling better financial management, fostering trust in the financial system, and facilitating access to funding opportunities. By integrating AI-driven financial literacy and tax compliance solutions, underserved communities and small businesses can unlock their economic potential, contributing to broader economic growth and financial inclusion. However, challenges such as data privacy, digital access, and regulatory concerns must be addressed to ensure equitable implementation of these technologies. The review concludes that with careful consideration of these factors, AI can be a powerful catalyst for sustainable economic development. Keywords: Leveraging AI-Driven, Financial Literacy Tax Compliance Small Businesses

AI-Powered customer experience optimization: Enhancing financial inclusion in underserved communities

The integration of Artificial Intelligence (AI) into customer experience optimization holds transformative potential for advancing financial inclusion in underserved communities. This review explores how AI-driven tools can enhance personalized banking services, streamline customer engagement, and improve access to financial products for individuals who are often marginalized by traditional banking systems. By leveraging AI algorithms, financial institutions can analyze vast amounts of customer data to identify unique needs, preferences, and behaviors, enabling the delivery of tailored financial solutions. These AI-powered systems can also automate routine tasks, such as account management and customer support, ensuring that banking services are more accessible, efficient, and cost-effective. A key benefit of AI in this context is its ability to overcome barriers such as geographic isolation and lack of financial literacy, which often hinder financial inclusion. AI-driven chatbots, for instance, can provide 24/7 support in local languages, guiding users through complex financial processes. Moreover, AI enables the creation of personalized financial literacy programs, tailored to the specific needs of underserved populations, fostering a deeper understanding of financial products and encouraging greater participation in the financial system. Additionally, AI-powered fraud detection systems enhance trust and security in financial transactions, a critical factor in encouraging participation from communities traditionally skeptical of formal banking systems. The use of predictive analytics further supports the development of micro-loans and credit products suited to the financial realities of low-income individuals, reducing default rates and improving access to capital. In conclusion, AI-powered customer experience optimization offers a powerful strategy for financial institutions seeking to expand their reach into underserved communities. By providing personalized, efficient, and secure banking experiences, AI can significantly contribute to financial inclusion efforts, driving economic empowerment and reducing inequalities. This study highlights the critical role of AI in reshaping financial services and creating inclusive opportunities for underserved populations. Keywords: Artificial Intelligence, Financial Inclusion, Customer Experience Optimization, Underserved Communities, Personalized Banking, AI-Powered Tools, Financial Literacy, Fraud Detection, Predictive Analytics, Economic Empowerment.