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Fintech and Financial Literacy in the Lao PDR

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  • Morgan, Peter J.

    (Asian Development Bank Institute)

  • Trinh, Long Q.

    (Asian Development Bank Institute)

Abstract

A growing literature has examined the role of financial literacy in an individual’s income, saving behavior and the use of various financial products. However, so far, no one has examined the relationship between financial literacy and the awareness and adoption of financial technology (fintech) products, i.e., financial products provided via internet-based and mobile-based platforms. This paper examines this relationship in a developing country, the Lao People’s Democratic Republic (PDR). We use information collected in the Lao PDR using the standardized questionnaire developed by the Organization for Economic Cooperation and Development International Network on Financial Education (OECD/INFE) to calculate our financial literacy. We find that a higher level of financial literacy has strong and positive effects on an individual’s awareness of fintech products. This result still holds when we use a set of instrumental variables for the financial literacy variable. However, there is insufficient data to find a significant relationship between financial literacy and the use of fintech products.

Suggested Citation

  • Morgan, Peter J. & Trinh, Long Q., 2019. "Fintech and Financial Literacy in the Lao PDR," ADBI Working Papers 933, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0933
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    References listed on IDEAS

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    1. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 111, pages 84-96.
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    6. Peter J. Morgan & Long Q. Trinh, 2019. "Determinants and Impacts of Financial Literacy in Cambodia and Viet Nam," JRFM, MDPI, vol. 12(1), pages 1-24, January.
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    Cited by:

    1. Seng, Kimty, 2021. "The mobile money’s poverty-reducing promise: Evidence from Cambodia," World Development Perspectives, Elsevier, vol. 22(C).
    2. Tasadduq Imam & Angelique McInnes & Sisira Colombage & Robert Grose, 2022. "Opportunities and Barriers for FinTech in SAARC and ASEAN Countries," JRFM, MDPI, vol. 15(2), pages 1-37, February.
    3. Choung, Youngjoo & Chatterjee, Swarn & Pak, Tae-Young, 2023. "Digital Financial Literacy and Financial Well-Being," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Journal P, pages 1-1.
    4. Oh, Eun Young & Rosenkranz, Peter, 2020. "Determinants of Peer-to-Peer Lending Expansion: The Roles of Financial Development and Financial Literacy," ADB Economics Working Paper Series 613, Asian Development Bank.
    5. Wookjae Heo & Jae Min Lee & Abed G. Rabbani, 2021. "Mediation Effect of Financial Education between Financial Stress and Use of Financial Technology," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 413-428, September.
    6. Rashed Al Karim & Farid Ahammad Sobhani & Md Karim Rabiul & Nusrat Jahan Lepee & Mohammad Rokibul Kabir & Mohammad Abdul Matin Chowdhury, 2022. "Linking Fintech Payment Services and Customer Loyalty Intention in the Hospitality Industry: The Mediating Role of Customer Experience and Attitude," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    7. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.

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    More about this item

    Keywords

    financial literacy; financial behavior; fintech; awareness of fintech; household saving; Lao PDR;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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