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The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion

The basic aim of this research was to investigate the impact of the behavioral biases on financial inclusion in Pakistan while considering the moderating effect of financial literacy in this relation, in the context of behavioral perspective. This study focused on the significant behavioral phenomen...

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Autores principales: Liu, Siming, Gao, Leifu, Latif, Khalid, Dar, Ayesha Anees, Zia-UR-Rehman, Muhammad, Baig, Sajjad Ahmad
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8631786/
https://www.ncbi.nlm.nih.gov/pubmed/34858274
http://dx.doi.org/10.3389/fpsyg.2021.742118
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author Liu, Siming
Gao, Leifu
Latif, Khalid
Dar, Ayesha Anees
Zia-UR-Rehman, Muhammad
Baig, Sajjad Ahmad
author_facet Liu, Siming
Gao, Leifu
Latif, Khalid
Dar, Ayesha Anees
Zia-UR-Rehman, Muhammad
Baig, Sajjad Ahmad
author_sort Liu, Siming
collection PubMed
description The basic aim of this research was to investigate the impact of the behavioral biases on financial inclusion in Pakistan while considering the moderating effect of financial literacy in this relation, in the context of behavioral perspective. This study focused on the significant behavioral phenomenon, including self-control, optimism, herding, and loss aversion with a perspective of the digital economy. To test the proposed hypothesis, the primary data collection method was used. A structured questionnaire was designed to collect data from 102 individual households through the convenience sampling technique. SmartPLS was used to analyze collected data. This study found the negative impact of self-control, optimism, and herding on financial inclusion. In contrast, loss aversion contributes to the uplift of financial inclusion in Pakistan. Similarly, financial literacy proved to have a decreasing effect on financial inclusion because of religious concerns. The moderation effect of financial literacy was also significantly positive except for loss aversion. The behavioral phenomenon proved to have a significant impact on financial inclusion. This research shows that individual households who do not use developed technological services and products from formal financial inclusion can overcome the behavioral biases that hinder them from making informed financial decisions. This research work will significantly help households use financial services to improve their standard of living and overall long-term financial well-being. This research is essential because many households are not using bank services and have low financial knowledge in Pakistan. The key contribution of this research study is that it found the relation between behavioral factors and financial inclusion. Financial literacy also has a moderating effect on their relations.
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spelling pubmed-86317862021-12-01 The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion Liu, Siming Gao, Leifu Latif, Khalid Dar, Ayesha Anees Zia-UR-Rehman, Muhammad Baig, Sajjad Ahmad Front Psychol Psychology The basic aim of this research was to investigate the impact of the behavioral biases on financial inclusion in Pakistan while considering the moderating effect of financial literacy in this relation, in the context of behavioral perspective. This study focused on the significant behavioral phenomenon, including self-control, optimism, herding, and loss aversion with a perspective of the digital economy. To test the proposed hypothesis, the primary data collection method was used. A structured questionnaire was designed to collect data from 102 individual households through the convenience sampling technique. SmartPLS was used to analyze collected data. This study found the negative impact of self-control, optimism, and herding on financial inclusion. In contrast, loss aversion contributes to the uplift of financial inclusion in Pakistan. Similarly, financial literacy proved to have a decreasing effect on financial inclusion because of religious concerns. The moderation effect of financial literacy was also significantly positive except for loss aversion. The behavioral phenomenon proved to have a significant impact on financial inclusion. This research shows that individual households who do not use developed technological services and products from formal financial inclusion can overcome the behavioral biases that hinder them from making informed financial decisions. This research work will significantly help households use financial services to improve their standard of living and overall long-term financial well-being. This research is essential because many households are not using bank services and have low financial knowledge in Pakistan. The key contribution of this research study is that it found the relation between behavioral factors and financial inclusion. Financial literacy also has a moderating effect on their relations. Frontiers Media S.A. 2021-11-11 /pmc/articles/PMC8631786/ /pubmed/34858274 http://dx.doi.org/10.3389/fpsyg.2021.742118 Text en Copyright © 2021 Liu, Gao, Latif, Dar, Zia-UR-Rehman and Baig. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Liu, Siming
Gao, Leifu
Latif, Khalid
Dar, Ayesha Anees
Zia-UR-Rehman, Muhammad
Baig, Sajjad Ahmad
The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title_full The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title_fullStr The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title_full_unstemmed The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title_short The Behavioral Role of Digital Economy Adaptation in Sustainable Financial Literacy and Financial Inclusion
title_sort behavioral role of digital economy adaptation in sustainable financial literacy and financial inclusion
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8631786/
https://www.ncbi.nlm.nih.gov/pubmed/34858274
http://dx.doi.org/10.3389/fpsyg.2021.742118
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