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Fintech: Evidence of the Urgent Need to Improve Financial Literacy in Portugal

Author

Listed:
  • Mariana Costa

    (Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193 Aveiro, Portugal)

  • Manuel Au-Yong-Oliveira

    (Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193 Aveiro, Portugal
    INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal
    GOVCOPP—Research Unit on Government, Competitiveness and Public Policies, Campus Universitário de Santiago, University of Aveiro, 3810-193 Aveiro, Portugal)

  • Ana Moreira

    (School of Psychology, ISPA—Instituto Universitário, Rua do Jardim do Tabaco 34, 1149-041 Lisboa, Portugal
    APPsyCI—Applied Psychology Research Center Capabilities and Inclusion, ISPA—Instituto Universitário, Rua Jardim do Tabaco 34, 1149-041 Lisbon, Portugal
    Faculdade de Ciências e Tecnologia, Universidade Europeia, Quinta do Bom Nome, Estr. da Correia 53, 1500-210 Lisboa, Portugal)

Abstract

Fintech has revolutionized the financial sector, providing a new way of providing banking services. Since Fintech can provide the same services as traditional banks but entirely online, it is a competitor. As a result, consumers’ relationships with banking have inevitably changed, and it is therefore relevant to analyze these changes. The main objective of this study is to understand people’s perceptions of Fintech, their level of knowledge about it, and the impact of its emergence on traditional banking. The study sample consisted of 174 participants. A quantitative methodology was used to test the hypotheses formulated. The results show that participants who know about Fintech and perceive it as safe have a greater intention of changing banks. On the other hand, they perceive that supervision and regulation in traditional banks is higher than in Fintech. Among the reasons for becoming a Fintech customer, the most mentioned were lower costs and the fact that they provide greater convenience and ease of use. It will be in Fintech’s interest to continue working with regulators so that the sector makes progress in this area and consumers can recognize greater equality between traditional banks and Fintech in the future.

Suggested Citation

  • Mariana Costa & Manuel Au-Yong-Oliveira & Ana Moreira, 2024. "Fintech: Evidence of the Urgent Need to Improve Financial Literacy in Portugal," Administrative Sciences, MDPI, vol. 14(5), pages 1-20, May.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:5:p:99-:d:1393360
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    References listed on IDEAS

    as
    1. Barry Eichengreen, 2023. "Financial regulation in the age of the platform economy," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(1), pages 40-50, March.
    2. Chen, S. & Doerr, S. & Frost, J. & Gambacorta, L. & Shin, H.S., 2023. "The fintech gender gap," Journal of Financial Intermediation, Elsevier, vol. 54(C).
    3. Christian Haddad & Lars Hornuf, 2019. "The emergence of the global fintech market: economic and technological determinants," Small Business Economics, Springer, vol. 53(1), pages 81-105, June.
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