The interplay of financial education, financial inclusion and financial stability and the role of Big Tech

Jonker, Nicole; Kosse, Anneke

doi:10.1111/coep.12578

Cited by 11 publications

(3 citation statements)

References 61 publications

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“…Arner et al (2018) argued that to reap the greatest benefits of Fintech for financial inclusion, a framework that supports infrastructure and an enabling policy and regulatory environment, built on a strong foundation of digital identification and electronic payment systems, is needed to support digital financial transformation. Jonker and Kosse (2022) pointed out that the financial inclusion opportunities created by Bigtech could introduce financial stability risks. They emphasized the importance of proper supervision and regulation in the financial system.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Determinants of Fintech and Bigtech Lending: the Role of Financial Inclusion and Financial Development

Ozili¹

2023

SSRN Journal

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Section: Literature Review and Hypothesismentioning

confidence: 99%

Determinants of Fintech and Bigtech Lending: the Role of Financial Inclusion and Financial Development

Ozili¹

2023

SSRN Journal

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“…were some of the main concerns [172]. The entry of Big Tech firms in the financial ecosystem impact financial stability, especially through financial inclusion among other factors [173]. Jonker and Kosse [173] also state that financial-inclusion opportunities created by Big Tech firms could cause different financial stability risks and highpoint the significance of appropriate supervision and regulation.…”

Section: Financial Literacy and Financial Inclusionmentioning

confidence: 99%

Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends

Zaimovic,

Torlakovic,

Arnaut-Berilo

et al. 2023

Sustainability

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Financial literacy is a critical life skill that is essential for achieving financial security and individual well-being, economic growth and overall sustainable development. Based on the analysis of research on financial literacy, we aim to provide a balance sheet of current research and a starting point for future research with the focus on identifying significant predictors of financial literacy, as well as variables that are affected by financial literacy. The main methods of our research are a systematic literature review, and bibliometric and bibliographical analysis. We establish a chronological path of the financial literacy topic in the scientific research. Based on the analysis of the most cited articles, we develop a comprehensive conceptual framework for mapping financial literacy. We identified a large number of predictors of financial literacy starting with education, gender, age, knowledge, etc. Financial literacy also affects variables such as retirement planning, financial inclusion, return on wealth, risk diversification, etc. We discuss in detail the main trends and topics in financial literacy research by involving financial literacy of the youth, financial literacy from the gender perspective, financial inclusion, retirement planning, digital finance and digital financial literacy. Our research can help policymakers in their pursuit of improving the levels of individual financial literacy by enabling individuals to make better financial decisions, avoid financial stress and achieve their financial goals. It can also help governments in their efforts in achieving sustainable development goals (SDGs).

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“…Numerous studies underscore the potential of fintech-driven inclusive finance as a means to alleviate poverty (Kelikume 2021;Lee et al 2023). Beyond poverty reduction, this approach has implications for bank risk management (Banna and Alam 2021;Banna et al 2021b;Deng et al 2021;Wang et al 2021), improving financial system stability (Jonker and Kosse 2022), and promoting economic growth and sustainability (Shen et al 2021;Tay et al 2022). Despite these insights, the connection between fintech-driven inclusive finance and bank profitability remains largely unexplored in the finance and development economics literature.…”

Section: Introductionmentioning

confidence: 99%

Does Fintech-Driven Inclusive Finance Induce Bank Profitability? Empirical Evidence from Developing Countries

Zheng,

Rahman,

Hossain

et al. 2023

JRFM

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This study explores the effect of fintech-driven inclusive finance on the profitability of banks using an unbalanced panel dataset from 660 banks across 40 developing countries between 2011 and 2021. We start with a fixed-effect estimate and subsequently validate our main findings using two-stage least squares (2SLS-IV), two-step system generalized method of moments (GMM), and generalized least squares (GLS) methodologies. Our analysis centers on three key profitability metrics: ROA, ROE, and NIM. Our findings suggest that fintech-backed inclusive finance boosts ROA by 9.10%, ROE by 18.87%, and NIM by 7.98%, highlighting the growing importance of mobile, internet, and agent banking in these nations. We also note that large banks benefit more from inclusive finance than small ones. Additionally, conventional banks see a more marked improvement in profitability than Islamic and savings banks. The relationship between inclusive finance and bank profitability is stronger in countries with higher GDP growth and those actively advancing financial inclusion through fintech, compared to countries with slower GDP growth and less emphasis on financial inclusion. When examining the interaction effects, the COVID-19 pandemic has further emphasized the positive connection between fintech and bank profitability. This suggests that fintech-driven inclusive finance can play a role in enhancing bank profitability, even in challenging times like the COVID-19 period. The transition towards fintech, however, mandates substantial investments, enhanced financial literacy, and heightened customer security, presenting persistent challenges for governments, policymakers, regulators, and financial institutions.

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The interplay of financial education, financial inclusion and financial stability and the role of Big Tech

Cited by 11 publications

References 61 publications

Determinants of Fintech and Bigtech Lending: the Role of Financial Inclusion and Financial Development

Determinants of Fintech and Bigtech Lending: the Role of Financial Inclusion and Financial Development

Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends

Does Fintech-Driven Inclusive Finance Induce Bank Profitability? Empirical Evidence from Developing Countries

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