Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption
Fintech has revolutionized the financial services sector, fundamentally transforming how individuals and businesses manage their finances. However, effective and responsible utilization of these innovative services may require a certain degree of financial competence. To explore this possibility, th...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2023-10-01
|
| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18889/IMFI_2023_04_Prabhakaran.pdf |
| _version_ | 1797668884012072960 |
|---|---|
| author | Shamli Prabhakaran Mynavathi L. |
| author_facet | Shamli Prabhakaran Mynavathi L. |
| author_sort | Shamli Prabhakaran |
| collection | DOAJ |
| description | Fintech has revolutionized the financial services sector, fundamentally transforming how individuals and businesses manage their finances. However, effective and responsible utilization of these innovative services may require a certain degree of financial competence. To explore this possibility, this study investigates the nexus between financial literacy and fintech usage in the Indian context, considering two distinct measures of financial literacy. Primary data were collected conveniently from 391 respondents through a cross-sectional survey. Probit regression was applied to analyze the relationship between the two dimensions of financial literacy and the adoption of fintech services across three segments: mobile banking, mobile payments, and digital lending. The findings reveal a positive relationship between individuals’ subjectively perceived financial literacy and their propensity to use all three fintech services. Conversely, objectively measured financial literacy demonstrates a positive association only with the likelihood of using mobile banking. The study also identifies demographic characteristics as contributing factors to variations in fintech adoption. The study’s findings hold value for policymakers and fintech service providers, as they underscore the importance of enhancing individuals’ subjective perceptions of their financial abilities to promote wider adoption of fintech services. |
| first_indexed | 2024-03-11T20:36:00Z |
| format | Article |
| id | doaj.art-228dd6f5053946668bf8c49430b9453f |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-03-11T20:36:00Z |
| publishDate | 2023-10-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-228dd6f5053946668bf8c49430b9453f2023-10-02T06:30:20ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582023-10-01204132510.21511/imfi.20(4).2023.0218889Perception vs. reality: Analysing the nexus between financial literacy and fintech adoptionShamli Prabhakaran0https://orcid.org/0000-0003-4502-7357Mynavathi L.1https://orcid.org/0000-0001-5865-8823M.Com, NET –Junior Research Fellow, Research Scholar, School of Commerce, Finance and Accountancy, CHRIST deemed to be UniversityM.Com, MBA, M.Phil, Ph.D., Associate Professor, School of Commerce, Finance and Accountancy, CHRIST deemed to be UniversityFintech has revolutionized the financial services sector, fundamentally transforming how individuals and businesses manage their finances. However, effective and responsible utilization of these innovative services may require a certain degree of financial competence. To explore this possibility, this study investigates the nexus between financial literacy and fintech usage in the Indian context, considering two distinct measures of financial literacy. Primary data were collected conveniently from 391 respondents through a cross-sectional survey. Probit regression was applied to analyze the relationship between the two dimensions of financial literacy and the adoption of fintech services across three segments: mobile banking, mobile payments, and digital lending. The findings reveal a positive relationship between individuals’ subjectively perceived financial literacy and their propensity to use all three fintech services. Conversely, objectively measured financial literacy demonstrates a positive association only with the likelihood of using mobile banking. The study also identifies demographic characteristics as contributing factors to variations in fintech adoption. The study’s findings hold value for policymakers and fintech service providers, as they underscore the importance of enhancing individuals’ subjective perceptions of their financial abilities to promote wider adoption of fintech services.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18889/IMFI_2023_04_Prabhakaran.pdfdigital lendingfinancial literacyfintechmobile bankingmobile payments |
| spellingShingle | Shamli Prabhakaran Mynavathi L. Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption Investment Management & Financial Innovations digital lending financial literacy fintech mobile banking mobile payments |
| title | Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption |
| title_full | Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption |
| title_fullStr | Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption |
| title_full_unstemmed | Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption |
| title_short | Perception vs. reality: Analysing the nexus between financial literacy and fintech adoption |
| title_sort | perception vs reality analysing the nexus between financial literacy and fintech adoption |
| topic | digital lending financial literacy fintech mobile banking mobile payments |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18889/IMFI_2023_04_Prabhakaran.pdf |
| work_keys_str_mv | AT shamliprabhakaran perceptionvsrealityanalysingthenexusbetweenfinancialliteracyandfintechadoption AT mynavathil perceptionvsrealityanalysingthenexusbetweenfinancialliteracyandfintechadoption |