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Consumer Financial Literacy and the Impact of Online Banking on the Financial Behavior of Lower‐Income Bank Customers
Author(s) -
SERVON LISA J.,
KAESTNER ROBERT
Publication year - 2008
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2008.00108.x
Subject(s) - financial literacy , the internet , business , intervention (counseling) , work (physics) , finance , marketing , bank account , psychology , computer science , mechanical engineering , psychiatry , world wide web , engineering , payment
This article analyzes a demonstration program mounted by a major bank to understand whether access to information and communications technologies, combined with financial literacy training and training on how to use the Internet, can help low‐ and moderate‐income individuals in inner‐city neighborhoods be more effective financial actors. While quantitative analysis turns up few significant program effects, qualitative work implies that implementation issues likely compromised the effectiveness of the program. There was evidence of a potential link between information and communications technologies and financial literacy. Overall, urban low‐ and moderate‐income individuals are interested in becoming technologically and financially literate and an intensive intervention may enable these goals.