Digital Financial Literacy and Its Determinants: An Empirical Evidences from Rural India
South Asian Journal of Social Studies and Economics,
Banking and financial institutions are undergoing a dramatic transformation in this digital age. Despite the extended digital communications, a significant proportion of the people cannot transact financially especially in rural areas. Effective financial transactions could be made possible through skills, awareness, and attitudes to use digital tools and digital transactions tools. Therefore, digital financial literacy became more critical nowadays and is considered prerequisites and preliminary steps for people's inclusion in the financial system. The determinants of digital financial literacy focus on the socio-economic demographic factors and used ordinary least square, multiple regression model. This model determines how various independent variables, namely age, gender, income, religion, social groups, family size, marital status, educational level, occupation, etc., significantly influence the respondents' digital financial literacy. The analysis is based on the primary data with five hundred samples collected from the rural areas of Aligarh district.
- Digital financial literacy
- digital financial awareness
- digital financial skill and knowledge
- digital financial behavior and attitude
How to Cite
Ozili PK. Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review. 2018;18(4):329–340. Available:https://doi.org/10.1016/j.bir.2017.12.003.
Way WL, Wong N. Harnessing the power of technology to enhance financial literacy education and personal financial well-being: a review of the literature, proposed model, and action agenda. Center for Financial Security WP Working Paper WP 10-6. 2010;(September):1–101.
GSMA. State of the Industry Report on Mobile Money; 2017. Available:http://www.gsma.com/mobilefordevelopment/wpcontent/uploads/2017/03/GSMA_State-of-the-Industry-Report-on-Mobile-Money_2016.pdf.
OECD. G20/OECD INFE report on ensuring financial education and consumer protection for all in the digital age. OECD Publishing, Paris;2017. Available:www.oecd.org/finance/financial-education/HIGHLIGHTS-G20-OECD-INFE-Report-Financial-education.
Gomber P, Koch JA, Siering M. Digital finance and fin tech: Current research and future research directions. Journal of Business Economics. 2017;67(5):537e580.
OECD. OECD digital economy outlook 2015. OECD Publishing, Paris; 2015. Available:https://doi.or g/10.1787/9789264232440-en.
Azeez NP Abdul, Akhtar SM Jawed. Digital financial literacy in rural india: a study of aligarh district. Pratidhwani the Echo: A Peer-Reviewed International Journal of Humanities & Social Science. 2020;71-90.
Beck T, Demirgu¨c-Kunt A, Levine R. Finance, Inequality and the Poor. Journal of Economic Growth. 2007;12(1): 27-49.
Bruhn M, Love I. The real impact of improved access to finance: evidence from mexico. The Journal of Finance. 2014; 69(3):1347e1376.
GPFI. G20 High-level principles for digital financial inclusion; 2016. Available:https://www.gpfi.org/sites/default/files/G20%20High%20Level%20Principles%20for%20Digital%20Financial%20Inclusion.pdf. (Accessed 8 November 2017)
Lusardi A. Financial capability and financial literacy among working women: new insights executive summary. Trends and Issues. 2017;(129):28.
Azeez NP Abdul, Akhtar SM Jawed. Determinants of financial literacy in rural India: A study of Aligarh district. International Journal of Financial Engineering. 2021;8(2). World Scientific Publishing. Available:https://doi.org/10.1142/S2424786321500092
Azeez NP Abdul, Banu M Nasira. financial literacy of economically marginalized people. Financial literacy and inclusion in India (Edited), New Century Publication, New Delhi. 2019;37-79.
a) Azeez NP Abdul, Banu M Nasira. Rural Transformation through Financial Literacy: A Study of Aligarh District. International Journal of Innovative Studies in Sociology and Humanities. 2019;5(5):175-185.
OECD. OECD Principles and good practices for financial education and awareness - financial stability board; 2005. Available:http://www.financialstability board .org/2005/06/cos_050622/.
OECD. 2015 OECD/INFE toolkit for measuring financial literacy and financial inclusion. 2015 OECD/INFE Financial Literacy and Financial Inclusion Measurement; 2015a.
OECD. PISA 2012 Results: Students and money: financial literacy skills for the 21st century (Volume VI). In Pedagogická Orientace; 2015b;25.
OECD INFE. Supplementary questions: optional survey questions for the oecd infe financial literacy core questionnaire. The 6th Meeting of the International Network on Financial Education; 2012.
Salemink K, Strijker D, Bosworth G. Rural development in the digital age: A systematic literature review on unequal ict availability, adoption, and use in rural areas. Journal of Rural Studies. 2017;54: 360–371.
Park S. Digital inequalities in rural australia: A double jeopardy of remoteness and social exclusion. Journal of Rural Studies. 2017;54:399–407.
Veselovsky MY, Pogodina TV, Ilyukhina RV, Sigunova TA, Kuzovleva NF, et al. Financial and economic mechanisms of promoting innovative activity in the context of the digital economy formation. Entrepren. Sustain. 2018;5(3):672– 681.
Townsend L, Sathiaseelan A, Fairhurst G, Wallace C. Enhanced broadband access as a solution to the social and economic problems of the rural digital divide. Local Econ. 2013;28(6):580–595.
Ben S, Ben S, Bosc R, Bosc R, Jiao J, Jiao J, Li W, Li W, Simonelli F, Simonelli F, et al. Digital infrastructure: overcoming the digital divide in China and the European union. CEPS Research Report; 2017.
Philip L, Cottrill C, Farrington J, Williams F, Ashmore F. The Digital divide: patterns, policy and scenarios for connecting the 'fial few’ in rural communities across Great Britain. Journal of Rural Studies. 2017;54:386–398.
Velaga NR, Beecroft M, Nelson JD, Corsar D, Edwards P. Transport poverty meets the digital divide: accessibility and connectivity in rural communities. J. Transp. Geogr. 2012;21:102–112.
Prasad H, Meghwal D. Digital financial literacy: a study of households of Udaipur. Global Journal of Advance Research. 2017;4(5):201–209.
Malecki EJ. Digital development in rural areas: potentials and pitfalls. Journal of Rural Studies. 2003;19(2):201–214.
Singh S, Rana R. Study of consumer perception of digital payment mode. Journal of Internet Banking and Commerce (JIBC). 2017;22(3):1–14. Available:http://www.icommercecentral.com.
Malady L. Consumer protection issues for digital financial services in emerging markets. Banking & Finance Law Review. 2016;31(2):389e401.
Thomas S, Krishnamurthi G. Cashless rural economy – a dream or reality ?. Jharkhand Journal of Development and Management Studies. 2017;15(2):7269–7281.
ITU. The digital financial services ecosystem. Technical Report. ITU Focus Group; 2016. Available:https://www.itu.int/en/ITU-T/focusgroups/dfs/Documents/09_2016/ FINAL%20ENDORSED%20ITU%20DFS%20Introduction%20Ecosystem%2028%20April%202016_formatted%20AM.pdf. (Accessed 14 November 2017).
OECD. Financial literacy and inclusion: results of oecd/infe survey across countries and by gender. Financial Literacy & Education. 2013;1–175. Available:https://www.oecd.org/daf/fin/financial-education/TrustFund2013_OECD _INFE_Fin_Lit_and_Incl_SurveyResults_by_Country_and_Gender.pdf
Atkinson A, Messy FA. Measuring financial literacy: results of the OECD. OECD working papers on finance, Insurance and Private Pensions. No 15, OECD OECD publising, Paris; 2012a. Available:https://doi.org/10.1111/j.1745-6606.2010.01170.x
Brown M, Graf R. Numeracy advancing education in quantitative literacy financial literacy and retirement planning in switzerland financial literacy and retirement planning in Switzerland. Numeracy. 2013; 6(6). Available:https://doi.org/10.5038/1936-4622.214.171.124
Thaler RH. Financial literacy, beyond the classroom. The New York Times; 2013. Available:https://www.nytimes.com/2013/10/06/business/financial-literacy-beyond-the-classroom.html
Lusardi A, Mitchell OS. The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature. 2007;52(1):5–44.
Taylor M. Measuring financial capability and its determinants using survey data. Social Indicator Research. 2011;102:297–314. Available:https://doi.org/10.1007/s11205-010-9681-9
Ibrahim D, Harun R, Isa ZM. A Study on Financial literacy of malaysian degree students. Canadian Academy of Oriental and Occidental Culture. 2009;5: 51–59.
Lusardi A, Mitchell OS. Financial literacy and retirement planning in the United States. Journal of Pension Economics and Finance. 2011b;10(4), 509–525. Available:https://doi.org/10.1017/S147474721100045X
Lusardi A, Wallace D. Financial literacy and quantitative reasoning in the high school and college classroom. Numeracy, 2013;6(2). Available:https://doi.org/10.5038/1936-46126.96.36.199
Lusardi A, Mitchell O. Financial literacy around the world : an overview. Journal of Pension Economics abd Finance. 2011a;10(4):497-508.
Bhushan P, Medury Y. Financial literacy and its determinants. International Association of Scientific Innovation and Research. 2013;4(2):155–160.
a) Bhushan Punit, Medury Yejulla, et al. Financial literacy and its determinants. International Journal of Engineering, Business and Enterprise Application. 2013;4(2):155-160.
Agarwalla SK, Barua MSK, Jacob J, Varma JR. Financial literacy among working young in Rural India. IIMA working Paper No 2013-10-02, IIM Ahmadabad, Research and Publication Department; 2013.
ANZ Banking Group. ANZ survey of adult financial literacy in Australia; 2003. Available:http://www.anz.com/Documents/AU/Aboutanz/AN_5654_Adult_Fin_ Lit_Report _08_Web_Report_full.pdf
Calamato MP. Learning financial literacy in the family. Pro Quest. 2011;1–19. Available:https://doi.org/10.1017/CBO9781107415324.004
Dew J. Debt change and marital satisfaction change in recently married couples. Family Relations. 2008;57(1):60–71. Available:https://doi.org/10.1111/j.1741-3729.2007.00483.x
ANZ. ANZ Survey of Adult Financial Literacy in Australia;2008. Available:http://www.anz.com/Documents/AU/Aboutanz/AN_5654_Adult_Fin_Lit_Report_08_Web_Report_full.pdf
Taft MK, Hosein ZZ, Mehrizi SMT. The Relation between financial literacy, financial wellbeing and financial concerns. International Journal of Business and Management. 2013;8(11):63–75. Available:https://doi.org/10.5539/ijbm.v8n11p63
Chen H, Volpe RP. An Analysis of Personal Financial Literacy Among College Students Haiyang. Finacial Services Review. 1998;7(2):107–128. Available:https://doi.org/10.3788/CJL201643.0811001
Kim J, Garman ET. Financial stress, pay satisfaction and workplace performance. Compensation & Benefits Review. 2004;36(1):69–76. Available:https://doi.org/10.1177/0886368703261215
Guiso L, Jappelli T. Financial literacy and portfolio diversification. Department of Economics at European University Institute, Italy; 2008.
Varma JR. Indian financial sector after a decade of reforms. Indian Institute of Management, Ahmedabad 380 015, India; 2003.
Abstract View: 88 times
PDF Download: 48 times