FinTech and household finance: a review of the empirical literature

Abstract

PurposeThis paper reviews recent advances in the empirical literature of FinTech and household finance.Design/methodology/approachWe survey the effects of FinTech on three different aspects of household finance: payments, lending and portfolio decisions. Specifically, we examine the impact of digital payments, mobile money, FinTech lending, marketplace lending, robo-advising and crowd-funding.FindingsStudies suggest that FinTech has positively benefited households by increasing consumption and borrowing. This allows them to smoothen their consumption across time. Furthermore, there is an improvement in their portfolio diversification. Nonetheless, there is also evidence that certain households overconsume and borrow beyond their means.Originality/valueDespite the importance of this topic, there has been a lack of empirical evidence until recently. In this paper, we take stock of the empirical evidence in the literature through the lens of household finance

How Does FinTech Affect Consumer Non-cash Payment Satisfaction? The Moderating Role of Financial Knowledge

“…Thirdly, the development of FinTech has stimulated the derivation of a large number of new types of financial needs. With the rise of ecommerce platforms, increasingly more forms of shopping services have been developed, which has promoted the change in the consumption market [6]. Hence, the development of FinTech will undoubtedly affect consumers' wellbeing from various aspects, and the improvement of consumers' quality of life will definitely affect their financial satisfaction.…”

“…Since 2013, the total number of non-cash payments made by retail payment instruments in China has been ranked second in the world. When it comes to the total value of non-cash payments, China has long been an absolute leader in the world, with the United States, Britain, and Germany ranking second, third, and fourth, respectively [6]. In 2020, the outbreak of the COVID has accelerated the penetration of digital payments.…”

“…This poses a threat to consumer privacy rights and even financial security. Also, it is pivotal that new technologies may lead to excessive consumption, excessive borrowing, and excessive investment, which will negatively contribute to household financial wellbeing, especially for those who are with low levels of financial knowledge [6]. Thus, how the development of FinTech will affect consumer satisfaction with non-cash payment is vital to be further investigated in detail.…”

“…Unlike previous research, this study aims to investigate the impacts of FinTech on consumer nonpayment satisfaction, which is informative for policymakers and financial institutions to formulate effective measures to promote consumer financial wellbeing. Last but not least, previous studies have proved that the development of FinTech is positive to the improvement of non-cash payment satisfaction [6,18,19], but the influence channels have yet to be uncovered. The basic comprehension of financial principles is defined as financial knowledge, and such knowledge allows consumers to better use FinTech and manage financial affairs effectively [20].…”

Forecasting equity returns: The role of commodity futures along the supply chain

“…The existing evidence of supply‐chain return predictability has well covered the stock markets. Although Agarwal and Chua (2020) document that financial information is currently more salient with lower search costs, the supply‐chain information still diffuses slowly. For instance, Menzly and Ozbas (2006), Cohen and Frazzini (2008), Menzly and Ozbas (2010), and Herskovic (2018) provide empirical evidence in the U.S. market, while Shahrur et al (2010) document consistent results in other developed markets.…”