Lack Of Financial Literacy Research Articles

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.

Study on Development of RSETI Training Programme at South Andaman district of Andaman and Nicobar Islands

The first and foremost important problem in today’s generation and economy is lack of financial literacy. The financial literacy towards entrepreneurship intention of rural youths of South Andaman District of Andaman and Nicobar Islands are studied here. The Rural self-employment training Institute are working on several districts of India and they are provided with these programmes to improve the entrepreneurial intention and financial literacy among the rural youths. This study is intended to know the influence of these programmes on entrepreneurship and its inception of skill in their respective fields and role of RSETI in supporting the trained candidates in settlement. Rural self-employment training institute (RSETI) is a replicated model of rural development and self-employment training Institute (RUDSETI) and a unique initiative which ids not only imparts training to the rural youths for different economic activities but also extends the supports to beneficiaries to settle though self-employments by providing credit linkage to the beneficiaries. The data was collected through primary and secondary data sources. The data taken from the beneficiaries who took training during last eight years and were engaged different entrepreneurial activities. Findings of this study states that 75% of them (cumulative) are new self-proud to be as successful entrepreneur. This year i.e., (2019-20) 489 candidates have been trained and majority of them i.e., 71% and above settled through bank finance/ wage employment.

Integrating a Personal Finance Workshop to Enhance Financial Literacy Among Senior Medical Students: A Single Institution's Experience.

Graduating medical students frequently start their training burdened with substantial financial debt and minimal savings, especially in comparison to their peers in other professional fields. A lack of financial literacy can result in increased debt, decreased job satisfaction and contribute to physician burnout. Enhancing financial education could improve both the financial stability and emotional well-being of future medical professionals. In this study, a basic personal finance workshop was conducted for 4th year medical students at a single institution. The aim of the study was to determine the impact of the personal finance workshop on improving financial literacy. An introduction to basic personal finance workshop was open to enrollment for all 4th year medical students at The Alpert Medical School at Brown University. A 40-question survey to evaluate financial literacy was administered to all participants before and 6-months after the workshop. The topics covered included student loan management, basics of retirement accounts, investing, budgeting, saving and consensus surrounding financial topics. The results were analyzed using student paired t-test and Chi-square test of independence. Overall, an improvement in financial literacy was reported 6 months after the personal finance workshop (62% vs 54%, p = 0.004). Students subjectively reported an increase in confidence in their personal finance knowledge (16% vs 44%) and general knowledge regarding retirement savings (7% vs 55%). More than 92% of students agreed or strongly agreed that a basic personal finance education should be included as part of the medical school curriculum. A personal finance workshop for medical students nearing graduation increases awareness and confidence in financial knowledge. The incorporation of basic financial education in the medical school curriculum may help young physicians establish better financial habits that will improve their financial wellbeing.

Behavioral Biases and Decision-Making in Investment among working individuals in the education sector

This study investigates the impact of behavioral biases on investment decisions among working individuals within the education sector. Behavioral finance theory serves as the theoretical foundation, emphasizing the role of psychological factors in shaping investment choices. The study employs a mixed-methods approach, combining surveys and in-depth interviews to gain insights into the investment behavior of educators, administrators, and support staff. Our findings reveal that a range of behavioral biases, including loss aversion, overconfidence, and herding, significantly influence investment decisions. Working professionals in the education sector often exhibit a strong preference for conservative investment strategies, even when market conditions may suggest otherwise. Psychological factors, such as fear of losses and a tendency to follow trends, play a vital role in shaping investment behavior. These biases are further exacerbated by a lack of financial literacy and investment education. The implications of this research suggest a need for targeted financial education programs to mitigate behavioral biases and enhance decision-making among working individuals in the education sector. Addressing these biases can lead to more informed and diversified investment strategies, potentially improving financial security and long-term wealth accumulation for this demographic. This abstract provides a brief overview of the research focus, methodology, key findings, and the potential implications of the study. It gives readers a clear understanding of the research's scope and significance.

Empowering Nueva Ecija’s Farmers through Microfinancing: A Blueprint for Enhancing Financial Literacy and Agricultural Resilience

This study examines the impact of microfinancing on the livelihoods of farmers in Nueva Ecija, Philippines, with the ultimate goal of formulating a comprehensive financial literacy plan. By analyzing the profile, status, and future prospects of these farmers, the research highlights how microfinance is utilized as a critical tool for economic stability and growth within the agricultural sector. The study identifies significant barriers to accessing microfinancing, including stringent loan conditions and the seasonal uncertainties of farming, which often hinder timely loan repayments and financial planning. Findings suggest that while microfinance has the potential to substantially improve farmers' economic conditions, its effectiveness is currently limited by a lack of financial literacy, inadequate loan flexibility, and insufficient alignment with the specific needs of farmers. As a result, many farmers experience challenges in securing and managing microfinance, thereby affecting their productivity and economic resilience. In response, targeted interventions are proposed to enhance the financial literacy of farmers, coupled with recommendations for microfinance institutions to adapt their products and services to better meet the needs of the agricultural sector. These initiatives aim to empower farmers with the necessary skills and resources to optimize their financial decisions and improve their livelihoods sustainably. The study underscores the need for a collaborative approach involving government bodies, educational institutions, and financial organizations to foster a supportive ecosystem that enhances the viability and sustainability of farming communities in Nueva Ecija.

Role of Financial Literacy in Household Investment Decisions in Iraq

Purpose: The aim of the study was to assess the role of financial literacy in household investment decisions in Iraq. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated that households with higher levels of financial literacy tend to make more informed and effective investment choices, which lead to better financial outcomes. These households are more likely to participate in financial markets, diversify their investments, and utilize a broader range of financial instruments, which helps in mitigating risks and enhancing returns. Financially literate individuals are also more adept at understanding complex financial products, assessing investment risks, and planning for long-term financial goals such as retirement. Conversely, a lack of financial literacy can result in poor financial decisions, leading to lower participation in the stock market, inadequate savings, and suboptimal investment portfolios. Thus, enhancing financial literacy is essential for empowering households to make sound investment decisions, ultimately contributing to greater financial stability and wealth accumulation. Implications to Theory, Practice and Policy: Behavioral finance theory, portfolio theory and agency theory may be used to anchor future studies on assessing the role of financial literacy in household investment decisions in Iraq. In terms of practical recommendations, developing and implementing targeted financial education programs is essential. These programs should focus on improving specific aspects of financial literacy relevant to investment decisions. From a policy perspective, advocating for policies that support the integration of financial literacy education into school curricula at all levels is essential.

ExpenseXpert: Transforming Financial Management with AI-Driven Predictive Analytics and Efficient Tracking

In today's interconnected and dynamic financial landscape, individuals often face challenges in managing personal finances, exacerbated by a lack of financial literacy. This research introduces an innovative solution, "ExpenseXpert" designed to revolutionize the financial management paradigm. The system leverages artificial intelligence (AI) and machine learning (ML) to streamline expense tracking, budgeting, and financial insights, providing users with unprecedented efficiency and accuracy. The system's proactive approach includes notifications to alert users if they exceed their budget, ensuring financial discipline. It goes beyond traditional expense tracking by generating custom budget plans based on spending patterns, offering a unique feature for users to download summaries of their expenses in PDF or Excel formats.

An Analysis of the Obstructive Factors that Impact the Empowerment of Women Entrepreneurs in Sri Lanka

The sector of small and medium enterprises is considered an encouraging platform for the economic empowerment of women through participating in economic development as entrepreneurs. The lower productivity exhibited by these SMEs in Sri Lanka was identified as a result of the high participation rate of female entrepreneurs in the informal economy. An unfavourable environment has been created obstructing the transition of women entrepreneurs towards the upper echelon of the business world through diverse impediments. Thus, the research focused on exploring the barriers that hinder the business growth of women entrepreneurs in small and medium-scale enterprises. Accordingly, the research was conducted as secondary research: a literature survey. In Sri Lanka, a minor percentage of female participation in small and medium enterprises occurs due to limited access to financial resources, lack of financial literacy, social prejudices, social and cultural restrictions, and limited opportunities for networking and communicating with external resources. Thus, closing the gender gap in education, giving access to capital through a concerted policy action and providing women entrepreneurs with opportunities to improve their financial literacy and educational level were highlighted as the major recommendations in the study to empower women entrepreneurs to climb the value chain. Women entrepreneurs in small and medium-scale enterprises need to be facilitated with greater access to the domestic, regional and international markets in order to enable them to expand their businesses with productivity and innovation. Thus, vital policy measures should be taken to mitigate the barriers involved in formalizing the business mechanisms while focusing on increasing the benefits that women entrepreneurs can gain through that standardizing process.

BARRIERS IN ADOPTION OF FINTECH BY STREET VENDORS AND HAWKERS IN INDIA USING INTERPRETIVE STRUCTURAL MODELING

The adoption of financial technology (fintech) has the potential to make banking and financial services more accessible and convenient for all, but there are significant barriers preventing the adoption of fintech by street vendors and hawkers in India. This study aims to identify and analyse the barriers to fintech adoption using interpretive structural modelling (ISM). The research identified nine key barriers to fintech adoption, including perceived risk, lack of trust, lack of perceived benefit, social influence, lack of awareness, cash culture, lack of literacy, perceived ease of use, and lack of financial literacy. The study utilizes ISM to develop a hierarchy of these barriers and their interrelationships. The findings suggest that to promote the adoption of fintech, it is essential to build trust and awareness of fintech services through education and out-reach programs. This research provides a comprehensive understanding of the barriers to fintech adoption among street vendors and hawkers in India and offers insights into how these barriers can be overcomed. The study contributes to the development of strategies that can help promote the adoption of fintech among marginalized populations and advance financial inclusion in India.

The Phenomenon of Debt-loving Behavior Through the Islamic Worldview Perspective and Literacy in the Digital Era

The existing cultural problem of debt-loving behavior is slowly growing as a societal norm driven by an insatiable need to satisfy an individual’s worldly desires. In Islam, it is considered more favorable to incur debt in situations of emergency. Consequently, researchers want to examine the factors contributing to the prevalence of debt-loving behavior in the contemporary digital era, alongside exploring the Islamic perspective on addressing this situation. This research employed a descriptive qualitative methodology. The findings indicate that multiple reasons contribute to an individual’s affinity for debt. These aspects include 1) excessive consumptive behavior; 2) impulsive buying tendencies; 3) perceiving debt as a societal trend; 4) lack of financial literacy; and 5) being influenced by one’s worldview. The prevalence of social media platforms has profoundly impacted modern lifestyles, promoting a lifestyle centered around seeking pleasure and gratification. Hedonism constitutes an integral component of capitalist rationality. The Islamic worldview diverges from the Western worldview in considering worldly life and the afterlife. The notion of Islamic rationality encompasses using mathematical logic, metaphysical, and spiritual elements to address worldly challenges. The worldview can be seen and utilized to comprehend and evaluate every human activity and behavior.
 Keywords: debt, Islam, worldview

Legal impact and urgency of protection for users of illegal online loan services

This study aims to identify legal sanction against illegal lending providers in Indonesia and examine legal protection for users of illegal online loan services. The research method used is a normative legal approach with a focus on analysis of applicable laws and regulations. Indonesia has a number of legal sanctions that have been imposed on illegal loan organisers, including suspensions of operations, administrative sanctions, and even criminal penalties under the Law and OJK Regulations. These measures aim to protect the public from illegal practices that can harm them financially and socially. On the user side, legal protection is regulated by POJK 77/2016 and the Consumer Protection Law, which provides consumer protection facilities such as complaint services and legal defence. Even though there are regulations that have been implemented, illegal loan services remain a problem because they offer loans without official permission, take advantages of people’s lack of financial literacy, and create the risk of uncontrolled lending. The importance of understanding and complying with the rules and laws that apply in lending services is the key to avoiding legal risks and financial problems

Financial Technologies for All MENA citizens: Tackling barriers and promoting inclusion

The digital divide within the financial sector, closely intertwined with the rapid evolution of financial technologies, commonly known as "FinTech," has fundamentally reshaped the landscape of financial services. These innovations have ushered in novel avenues for accessibility, enhancing the security of financial transactions and transcending traditional spatiotemporal constraints. This paper embarks on a journey to address key inquiries within the MENA region. It explores digital financial inclusion levels across MENA countries, identifies segments facing digital financial exclusion, scrutinizes the role of the digital divide, often compounded by a lack of financial literacy, as a barrier to financial inclusion, and investigates how FinTech can serve as a catalyst for inclusive development, with a specific focus on marginalized groups like women and the elderly. Our research employs a comprehensive mixed-methodological approach. We draw from micro-level data sourced from 9053 individuals, extracted from the World Bank's latest Global Findex 2021 database. Our comparative analysis, rooted in a two-step principal component analysis method to create the MENA Digital Financial Inclusion Index (DFII), shedding light on the current state of digital financial inclusion in the MENA region. Despite recent initiatives, our findings underscore that digital financial inclusion in the region remains relatively low. Furthermore, our estimations, based on the Heckman selection methodology, emphasize the pivotal role played by factors such as educational attainment, labor force participation, information and communication technologies, and internet access as primary drivers of digital financial inclusion in the MENA region. Our research contributes a substantial body of empirical evidence regarding digital financial inclusion levels across MENA countries, charting a path toward bridging the digital divide within the financial sector. These strategies encompass enhancing digital financial literacy, catalyzing broader participation in the labor market, and facilitating expanded access to mobile phones and the Internet. In light of our comprehensive dataset, the policy implications drawn from our study are of paramount interest to financial sector regulators in the MENA region, grounded in the real-life experiences of the individuals constituting our database, with the overarching goal of elevating digital financial inclusion in the region to new heights.

Outcome-Based Education

The literature laments college students’ lack of financial literacy and their lackadaisical interest in learning. However, our research demonstrates that students can be enticed such that they get interested in acquiring financial skills. Generally, college students live hand-to-mouth and are happy to learn about money-making opportunities (not necessarily financial management). Students were informed that qualified faculty will conduct a series of workshops whereby they will learn financial tools and skills and will also get an opportunity to trade stocks and options first-hand. Literature on pedagogy confirms that experiential learning is the best way to learn. Students also prefer practical, hands-on learning more than listening to a lecture or reading a book. Moreover, if workshops (for which professionals charge exorbitant sums) are offered for free, students’ interest soars, and they enrol in hordes. This is confirmed by our workshops which proved successful in enhancing student interest and imparting financial skills. The workshops were innovative and unique as they were online, interactive, tutored, and free. They were open to students from all majors, faculty, and staff. Students are excited about stock trading but are generally apprehensive of and intimidated by financial options. This was true of our sample of students as well, but the faculty-led, friendly, and riskless environment of hands-on learning provided a great opportunity, and over 100 individuals enrolled in our workshops. A comparison of pre- and post-survey quizzes shows that participants’ interest in, and knowledge of options trading increased significantly due to the workshops.

Does the availability of financial services affect the level of population well-being in the Russian Federation?

The development of financial markets is a prerequisite for the stable growth of the country’s economy. The availability of financial services, provided that markets work effectively, can lead to a noticeable reduction in inequality in society and a reduction in the level of poverty in the economy. An increase in inequality is not necessarily accompanied by an increase in the overall level of poverty. The reasons for the deteriorating financial situation of individual citizens may be the lack of financial literacy and investment in human capital, which often in practice leads to irrational financial decisions. In our study, we tried to empirically assess how the indicator of the level of poverty and the availability of individual financial services for Russian citizens are related in the aggregate sample, focusing on the theoretical explanation of the indirect influence of the factor of availability of financial services on the overall level of poverty in the Russian Federation at the micro level. We used the HSE RMEZ data from 2010–2021 as a statistical database for more than 103 thousand household households. We determined the status of a household based on a comparison of the actual income level and the subsistence minimum established in a particular region. The resulting binary variable eventually acted as a dependent. The regressors were the following indicators: education, age, family status, the presence of children, the period of maternity leave, the health of individuals, as well as factors of availability of financial services. Based on the application of the binary choice model, we came to the conclusion that large families, women on maternity leave, the unemployed, individuals without higher education, as well as those living in rural areas have a high probability of being among poor households. Based on empirical data, we also determined that in the regions of the Russian Federation in the period under review, the availability of bank cards or a deposit can reduce the likelihood of a household becoming poor by an average of 3–5 %.

Financial Management Proficiency For MSMEs

This research investigates the financial management proficiency essential for the success of Micro, Small, and Medium Enterprises (MSMEs). The study aims to explore the strategies employed by MSMEs to effectively manage their finances and navigate challenges. The research model adopts an interpretivist approach, utilizing semi-structured interviews with MSME owners and managers. A purposive sampling technique is employed to select participants representing diverse industries and geographic locations. Data analysis involves thematic coding to identify patterns, themes, and insights regarding financial management practices. Preliminary findings suggest a variety of strategies, including budgeting, cash flow management, and strategic investment decisions, play pivotal roles in MSME success. Additionally, the study identifies common challenges faced by MSMEs in financial management, such as limited access to financial resources and lack of financial literacy. This research contributes to understanding the nuanced dynamics of financial management within the MSME sector, providing valuable insights for policymakers, practitioners, and MSME owners striving for sustainable growth and success.

Problems of determining the borrower's creditworthiness

This article addresses the challenges associated with determining the borrower's creditworthiness. The authors define the borrower's creditworthiness as the ability to timely and fully meet debt obligations to the lender. This determination is based on an evaluation of the borrower's financial condition, forecast of business development, and other factors influencing the ability to repay the loan.
 The authors identify internal and external factors affecting the creditworthiness of borrowers in Ukraine. Internal factors include the economic situation, regulatory policies, credit history, credit rating, and a lack of financial literacy. External factors encompass the global economic situation and the political climate.
 The article also discusses challenges in determining the borrower's creditworthiness during times of war. The authors note that creditworthiness can sharply decrease during such periods due to factors such as reduced income, increased costs, decreased demand for goods and services, and an unstable economic situation.
 To address these challenges during wartime, the authors propose the following recommendations:
 
 Widespread use of artificial intelligence: AI enables the consideration of more factors affecting the borrower's creditworthiness and the adaptation of credit scoring models to changes in the economic situation.
 Expansion of data on the borrower's financial condition: Financial institutions should utilize more data sources, including unstructured data such as social media and behavioral data, to assess the borrower's financial condition.
 Development of new methods for assessing creditworthiness: Financial institutions should create new methods that account for the specific conditions of wartime.
 Establishment of cooperation between financial institutions and government agencies: This collaboration will provide additional data on the financial condition of borrowers, offering financial institutions a more comprehensive view.
 Promotion of financial literacy among the population: Improving financial literacy will empower borrowers to better understand their financial obligations and make more informed lending decisions.
 
 Implementing these recommendations will enable financial institutions to enhance the accuracy of creditworthiness assessments and, consequently, reduce credit risks during times of war.

Personalized Financial Recommendations: Real-Time AI-ML Analytics in Wealth Management

Recent studies reveal a concerning lack of financial literacy among millennials, highlighting the need for comprehensive education in managing personal finances. Financial literacy is not only crucial for employability but also for navigating life successfully. Many individuals, including those in the corporate sector, struggle with financial planning and decision-making. In response, awareness in wealth management has emerged as a vital solution. Wealth management extends beyond mere investment advice; it encompasses various financial services tailored to individuals' needs, addressing all aspects of their financial lives. By leveraging artificial intelligence and machine learning principles, individuals can access comprehensive information on various investment options and develop personalized financial plans. This approach empowers individuals and their families to effectively manage both current and future financial needs.

Can central bank digital currencies help advance financial inclusion?

Central banks around the world are considering how retail central bank digital currencies (CBDCs) may help to advance financial inclusion. While CBDCs are not a magic bullet, they could be a further tool to promote universal access to payments and other financial services if this goal features prominently in the design from the get-go. In particular, central banks can consider design options to: (1) promote innovation in the two-tiered financial system (eg allowing for non-bank payment service providers); (2) offer a robust and low-cost public sector technological basis (with novel interfaces and offline payments); (3) facilitate enrolment (via simplified due diligence and electronic know-your-customer processes) and data portability; and (4) foster interoperability (both domestically and across borders). Together, these features can address a range of specific barriers to financial inclusion: geographic remoteness, institutional and regulatory factors, economic and market structure issues, characteristics of vulnerability, lack of financial literacy and low trust in existing financial institutions. This paper draws on interviews with nine central banks with advanced work on CBDCs and financial inclusion — the Central Bank of the Bahamas, Bank of Canada, People’s Bank of China, Eastern Caribbean Central Bank, Bank of Ghana, Central Bank of Malaysia, Bangko Sentral ng Pilipinas, National Bank of Ukraine and Central Bank of Uruguay. It gives concrete examples from the central banks’ work and discusses challenges, risks and regulatory and legal implications. It argues that while CBDCs hold promise for furthering financial inclusion, CBDC issuance may also require new laws and regulations to be enacted, or existing laws to be revised.

PENGARUH LITERASI KEUANGAN DAN GAYA HIDUP TERHADAP PENGELOLAAN KEUANGAN MAHASISWA DI CIKARANG

The economic development and the increase of student opportunity to work while studying college, leads to the importance of financial management. Many colleges student study and also have a work to increase their personal income and pay their tuition fee. Considering the circumstances, they should know about how to manage the personal income. Problem arise when students cannot manage their personal income because of their lack of financial literacy and their way of life (lifestyle). This study aims to examine the relationship between financial literacy and lifestyle towards student’s financial management at President University, Pelita Bangsa University, Cikarang Branch Open University, STAI HAS Cikarang, STEBI Global Mulia and LP3I Cikarang. This research is a descriptive quantitative research with data collection techniques using questionnaire, using sample of 150 students at President University, Pelita Bangsa University, Cikarang Branch Open University, STAI HAS Cikarang, STEBI Global Mulia and LP3I Cikarang. The data analysis technique uses the classical assumption test, multiple linear regression analysis, F test and T test. The results of this study is that financial literacy has a significant effect on students’financial management in Cikarang, while Lifestyle also has a significant effect on student financial management in Cikarang.

Developing Small Medium Enterprise of Creative Business through Digital Marketing and Financial Management Training

The rapid growth of SMEs in Indonesia over the last 5 years has also been accompanied by many MSMEs going bankrupt. However, this rapid growth of SMEs is also accompanied by many SMEs going bankrupt due to mismanagement and low competitiveness caused by a lack of financial literacy (planning, recording, and reporting finances) and a lack of adaptability to business digitalization and product promotion strategies through digital media. Similar problems were also experienced by SMEs of creative businesses in Surabaya, Indonesia. This phenomenon drives the importance of increasing competitiveness with more effective digital marketing strategies and system-based financial management through community service programs in this region. This community service consists of digital marketing and financial information systems training activities.