Financial literacy and FinTech market growth around the world

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dc.contributor.authorAlSuwaidi ,Reem Ahmed
dc.contributor.authorMertzanis, Charilaos
dc.date.accessioned2025-09-11T05:51:15Z
dc.date.available2025-09-11T05:51:15Z
dc.date.issued2024-10
dc.descriptionThe exploration of the impact of education, particularly financial literacy, on the growth of the FinTech sector is a subject of considerable significance within both academic research and policy discourse. The importance of financial literacy in fostering the growth of FinTech lies in its capacity to empower customers in making well-informed choices regarding FinTech offerings, instilling a sense of trust and confidence in the FinTech industry, and advancing financial inclusion. A growing body of evidence supports the link between financial literacy and FinTech growth. For example, a World Bank paper (Ansar, Klapper, & Singer, 2023) stress the role of financial literacy for enhancing the role of financial services. A related paper highlights the role of consumer protection and literacy in enhancing FinTech venturing (Feyen, Natarajan, & Saal, 2023). Although this field of inquiry is still in its nascent stages, it is gaining momentum due to the emergence of several noteworthy global trends that underscore the importance and relevance of this connection.
dc.description.abstractLeveraging new data on fintech financing from the Bank of International Settlements, this study establishes a strong, positive association between financial literacy and the growth of the FinTech market across 114 countries from 2013 to 2019. We construct a new education policy-based measure of financial literacy based on the extent to which financial education is planned and subsequently integrated in public education curricula, using data from the World Bank's Global Financial Inclusion and Consumer Protection Survey. Additionally, we use the Standard and Poor's Global Financial Literacy Survey to obtain a market-based measure of financial literacy reflecting individuals' financial knowledge. We identify nonlinear effects within this relationship. This correlation between financial literacy and FinTech market growth remained consistent in varying economic, technological, and institutional contexts, validated through rigorous sensitivity tests and endogeneity analysis. The results imply that higher levels of financial literacy within a population could serve as a catalyst for expanding the FinTech market, underscoring the key role of financial knowledge in fostering the adoption and utilization of FinTech products and services thereby providing useful policy directions. Keywords Fintech , Financing, Consumer Protection, Global Financial ,
dc.identifier.citationAlSuwaidi, R. A., & Mertzanis, C. (2024). Financial literacy and FinTech market growth around the world. International Review of Financial Analysis, 95, 103481.
dc.identifier.doihttps://doi.org/10.1016/j.irfa.2024.103481
dc.identifier.urihttps://repository.adu.ac.ae/handle/1/7427
dc.language.isoen
dc.publisherElsevier
dc.titleFinancial literacy and FinTech market growth around the world
dc.typeArticle

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