Consumer Financial Literacy and the Impact of Online Banking on the Financial Behavior of Lower‐Income Bank Customers

Abstract

This article analyzes a demonstration program mounted by a major bank to understand whether access to information and communications technologies, combined with financial literacy training and training on how to use the Internet, can help low-and moderate-income individuals in inner-city neighborhoods be more effective financial actors. While quantitative analysis turns up few significant program effects, qualitative work implies that implementation issues likely compromised the effectiveness of the program. There was evidence of a potential link between information and communications technologies and financial literacy. Overall, urban low-and moderate-income individuals are interested in becoming technologically and financially literate and an intensive intervention may enable these goals.

Financial literacy, financial advice, and financial behavior

“…Financial literacy, financial advice, and financial behavior 621 Walstad et al 2010;Heinberg et al 2010;Lührmann et al 2015) as well as financial behavior (e.g., Bernheim et al 2001;Servon and Kaestner 2008;Clark et al 2015;Lührmann et al 2015). The literature usually approaches the topic as follows: A particular financial education intervention is analyzed with respect to its impact on measured financial literacy and-in most assessments-on financial behavior.…”

Does Financial Literacy Moderate the Relationship among Demographic Characteristics and Financial Risk Tolerance? Evidence from Egypt

“…Otherwise, Hallahan, Faff and McKenzie (2003) found that marital status could not explain the variations in individual's risk attitude. Servon and Kaestner (2008) stated that financial literacy is a person's ability to understand and utilize of financial concepts. U.S. Financial Literacy and Education Commission (2007) defined financial literacy as "the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being."…”

Customer’s Adoption of Mobile-Commerce A Study on Emerging Economy

“…Electronic banking requires perhaps the most consumer involvement, as it requires the consumer to maintain and regularly interact with additional technology (a computer and an Internet connection) [23]. Consumers who use e-banking use it on an ongoing basis and need to acquire a certain comfort level with the technology to keep using it [24].Customer adoption is a recognized dilemma for the strategic plans of financial institutions. Several studies have investigated why individuals choose a specific bank.…”