Consumer Credit Behavior in the Digital Context: A Bibliometric Analysis and Literature Review

Abstract

This literature review seeks to map the state of research on the effects of digitization on personal financial behavior and management through a bibliometric analysis and a systematic literature review. The findings indicate that current knowledge is primarily based on perspectives of actors in commerce and systems development. More research is needed on how personal financial behavior change in relation to digital technology, the vulnerability of children and adolescents, and the links between changes in credit behavior and indebtedness. Financial counseling could benefit from an awareness of young adults vulnerability as digital consumers and an extended perception of financial literacy that encompasses requirements of digital society. Policymakers need to be aware of the consequences of digital measurability.

Demand for credit in high-density markets in Kampala: Application of digital lending and implication for product innovation

“…Behavioural economics are applicable to explain fraud in digital lending (LexisNexis, 2019), default (Hertzberg, Liberman & Paravisini, 2015), credit behaviour (Carlsson, Larsson, Svensson, & Åström, 2017) and bankruptcy (Sánchez, 2018). LexisNexis (2019) posits that fraud in digital lending are financially detrimental to smaller banks and non-bank lenders more than market competitions that such landers face.…”

“…According to Carlsson, Larsson, Svensson, and Åström, (2017) digitisation affects an individual's financial behaviour. The works of Carlsson, et al (2017), relates to and can be applicable to explain young people's vulnerability to digital credits and the rising incidence of gambling using digital credit and youth indebtedness . According to Carlsson, et al, (2017), financial counselling can limit effects of digital credit on youth.…”

“…The works of Carlsson, et al (2017), relates to and can be applicable to explain young people's vulnerability to digital credits and the rising incidence of gambling using digital credit and youth indebtedness . According to Carlsson, et al, (2017), financial counselling can limit effects of digital credit on youth. However, counselling should be informed by awareness of levels of vulnerability of young people as consumers of digital financial services.…”

“…Many studies (Abdallah, 2016;Björkegren & Grissen, 2018;Carrera, 2019;Carlsson, Larsson, Svensson & Åström, 2017;Deininger & Goyal, 2012;Gatsi & Gbettey, 2019;Van Loo, 2018) document that enhancing access to credit for individuals and businesses leads to increased financial inclusion. According to Gatsi and Gbettey (2019), increasing financial inclusion is relevant in policy discussions because increased financial inclusion leads to economic growth and development.…”

“…Access to credit enhances financial inclusion especially if credit providers develop products that respond to the needs of lower-income consumers. On the other hand, digital credit is said to worsen welfare of its consumers (Carlsson, Larsson, Svensson & Åström, 2017). According to Carlsson, et al (2017) when consumers access digital credit, their behaviours change.…”