bankability

Manifest Financial | Banking Solutions for Creators

Crafted specifically for creators, streamlining financial management with seamless payments and effortless expense tracking—all in one place.

FinTech payment services adoption among women: the impact of personality, financial services knowledge and artificial intelligence

Purpose. This study aims to explore the adoption of FinTech payment services among women. It assesses the phenomenon through the impact of personality traits and financial services knowledge and investigates the moderated-mediation role of the artificial intelligence.Design/methodology/approach. Adopting the technology acceptance model, this study implied a quantitative survey to collect data from the women (N = 220). The relationship among the variables were assessed through Hayes’ PROCESS moderation-mediation model, with a robustness check through structural equation modeling (SEM) that substantiates the study’s findings.Findings. The results showed that the women with high agreeableness and openness are inclined to use FinTech payment services. Moreover, high-level banking services and FinTech usage knowledge positively correlated to the usage of FinTech payment services. In addition, artificial intelligence positively influences the use of FinTech payment services among women.Practical implications. This study offers policymakers a roadmap to make FinTech payment services more accessible among women through financial services knowledge and the use of artificial intelligence. This will advance the progress toward United Nations’ Sustainable Development Goals on gender equality and innovation.Social implications. This study reinforces the prospect of women’s empowerment through FinTech, paving way to explore the prospective mechanism for a complete shift to digitalization of economy to promote economic transparency.Originality/value. To the best of the authors’ knowledge, this is amongst the first studies that investigates the role of big-five personality traits and artificial intelligence in enhancing the usage of FinTech payment services among women. The innovative nature of this study promotes financial inclusion among the female population and opens up new research avenues to promote FinTech adoption.

Role Integration Increases the Fungibility of Mentally Accounted Funds

Bridging the gap between the mental accounting and identities/roles literatures, the present research examines how the extent to which an individual's life roles (e.g., “employee,” “spouse”) are integrated (i.e., have more flexible and permeable psychological boundaries between them) moderates the fungibility of mentally accounted funds. Specifically, individuals with more integrated roles are more able to circumvent the constraints typically imposed by mental budgeting and earmarking; therefore, they are more likely to use funds that are allocated or budgeted for the purposes of one role to service the needs/wants of another role. This holds regardless of whether funds have been (1) allocated to a broader role-specific mental account for future expenditures or (2) earmarked for a specific purchase. The authors find evidence that the effect of role integration arises because those with more integrated roles believe that making purchases for one role using funds allocated or budgeted for the other role is more justifiable.

Monopoly money: The effect of payment coupling and form on spending behavior.

Financial Literacy, Financial Education, and Downstream Financial Behaviors

Policy makers have embraced financial education as a necessary antidote to the increasing complexity of consumers' financial decisions over the last generation. We conduct a meta-analysis of the relationship of financial literacy and of financial education to financial behaviors in 168 papers covering 201 prior studies. We find that interventions to improve financial literacy explain only 0.1% of the variance in financial behaviors studied, with weaker effects in low-income samples. Like other education, financial education decays over time; even large interventions with many hours of instruction have negligible effects on behavior 20 months or more from the time of intervention. Correlational studies that measure financial literacy find stronger associations with financial behaviors. We conduct three empirical studies, and we find that the partial effects of financial literacy diminish dramatically when one controls for psychological traits that have been omitted in prior research or when one uses an instrument for financial literacy to control for omitted variables. Financial education as studied to date has serious limitations that have been masked by the apparently larger effects in correlational studies. We envisage a reduced role for financial education that is not elaborated or acted upon soon afterward. We suggest a real but narrower role for “just-in-time” financial education tied to specific behaviors it intends to help. We conclude with a discussion of the characteristics of behaviors that might affect the policy maker's mix of financial education, choice architecture, and regulation as tools to help consumer financial behavior. This paper was accepted by Uri Gneezy, behavioral economics.

NRW.Mikrodarlehen - NRW.BANK

Finanzierung für Kleinstgründungen bis zu fünf Jahre nach Aufnahme der Geschäftstätigkeit.

The Financial Knowledge Scale: An Application of Item Response Theory to the Assessment of Financial Literacy

Despite increasing interest in and funding for financial literacy and financial education programs in the private and public sectors, the field of financial literacy still has a major obstacle to overcome: the lack of a widely disseminated measure of financial literacy, developed through rigorous psychometric analyses. In this article, we develop such a measure, focusing specifically on financial knowledge . Using item response theory (IRT), we analyze items from three national surveys, resulting in a psychometrically sound 20‐item financial knowledge scale. By using IRT, the current analysis uses individuals' answers to inform which questions to include in the scale in the first place, rather than simply confirming relationships between these answers and other financially relevant outcomes post hoc. Widespread use of this index and the continued use of modern psychometric techniques would allow for the comparison of financial knowledge, measured consistently and reliably, across studies, populations, and programs.

How your bank balance buys happiness: The importance of “cash on hand” to life satisfaction.

Systems: How the Ultra-Wealthy Think About Money - Anil Dash

A blog about making culture. Since 1999.

Artificial intelligence and personal finance

Artificial intelligence (AI) is transforming how consumers access and use financial information, education and advice for personal financial decision making. While consumers’ increasing use of AI tools and AI-generated content for personal finance brings opportunities in terms of accessibility, personalisation and decision making, it also increases risks related to bias, hallucinations, commercial influence, data privacy and exclusion, with uncertain benefits on long-term financial well-being. This policy paper provides policymakers and stakeholders with an overview of current trends, opportunities and risks in the use of AI in personal finance and in the design and delivery of financial education. It also proposes a set of financial literacy competencies to support the use of AI in personal financial decision making.

Is cash perceived as more valuable than digital money? The mediating effect of psychological ownership and psychological distance

This research examines how the type of money (cash vs. digital) affects consumers’ perceived purchasing power (PPP) of the money and the mediating mechanisms of psychological ownership and psychological distance. Three lab experiments confirm that cash results in higher PPP than does digital money, and that both psychological ownership and psychological distance contribute to the effect of money type on PPP. Our findings provide theoretical implications for the psychological research on the type of money and its influence and practical implications for e-payment and online shopping behaviors.

The Future of Money: How the Digital Revolution Is Tran…

A cutting-edge look at how accelerating financial chang…

On the Mental Accounting of Restricted-Use Funds: How Gift Cards Change What People Purchase

Abstract. This article emphasizes the role of categorization in mental accounting and proposes that once a mental account is established, purchases that ar

Money Illusion

Abstract. The term “money illusion” refers to a tendency to think in terms of nominal rather than real monetary values. Money illusion has significant impl

Spenders and savers, tightwads and spendthrifts: Individual correlates of personal ratings of being a spender or a saver.

Credit card debt puzzle: liquid assets to pay household bills

Using transaction data from a US consumer payments diary, we revisit the credit card debt puzzle—a scenario in which households revolve credit card debt while also keeping liquid assets as bank account deposits. This scenario is very common: 42 percent of consumers in our sample were borrower-savers in 2019. We explain the puzzle by showing that consumers need their liquid assets to pay household bills and other necessary expenses, including mortgage or rent. More than 80 percent of bills by value were paid out of bank accounts and could not be charged to credit cards, so bank account balances were needed to cover those basic expenses. On average, borrower-savers’ credit card debt exceeded their liquid assets. The average borrower-saver carried almost $6,400 in unpaid credit card debt and had $5,400 in liquid assets. On average, the value of their liquid assets could cover only about 60 percent of their unpaid debt plus monthly bills. In almost every category of assets or debts, borrower-savers were worse off financially than savers. Thus, the differences between borrower-savers and savers are much broader than just their credit card debt and bank account balances; they extend to mortgage debt and home equity. Carrying a mortgage or other debt (such as auto or educational loans) is associated with a higher probability of revolving on a credit card, suggesting that various types of household debt might be complements rather than substitutes. We do not find evidence that either financial literacy scores or the “Big 5” personality traits predict whether a consumer is a borrower-saver. During the COVID-19 pandemic in 2020, bor-savs’ behavior was consistent with what we would expect under our explanation for the credit card puzzle. However, consumers’ unpaid credit card debt decreased, and their liquid assets increased, so the fraction of borrower-savers dropped to 35 percent of the sample.