Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 23, 2023 erstellt
Description:
Fintech has transformed the landscape of financial services, resulting in significant changes in consumer behavior and personal finance management. In this paper, we examine the effect of fintech usage on financial literacy. We hypothesize that fintech acts as a gateway for households to a broader financial market, and frequent usage of fintech leads to the exploration of different financial services and products, which in turn improves financial literacy. Using the primary data collected from 345 individuals, we created a financial literacy index using the factor analysis method. We utilize the instrumental variable regression and the generalized method of moments (GMM) to control for possible endogeneity. The results suggest that fintech usage is associated with better financial literacy. We reconcile our findings with the existing literature that claims the relationship between fintech adoption and financial literacy is in the opposite direction, and discuss policy and practical implications