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Financial Proficiency in the Age of Artificial Intelligence A Critical Evaluation in Saharsa District in Bihar

Author

Listed:
  • Jha, Manjari
  • Mishra, Mukesh Kumar

Abstract

The transition from a financial (proficiency) hereafter literacy to Artificial Intelligence (AI) is the centre of debate in know a day among financial institutions, practitioners and scholar. The literature suggests that individual freedom emphasize financial literacy is crucial for decision-making in monetary strategies, investments, and planning. Rural communities face financial illiteracy challenges, but AI integration offers a breakthrough. Few studies investigate the relationship between financial literacy and artificial intelligence performance in emerging economies, focusing on stable, uncertain environments. This study examines trends in Financial Literacy in the era of artificial intelligence in Saharsa district, in Bihar. Financial literacy aims to improve capital formation, save and invest among rural households, and improve financial management and policymaking. This descriptive-correlational study, with the help of ANOVA to analyze AI's impact on financial literacy, focusing on demographic groups and banking channels, to compare the effectiveness of AI-driven initiatives, aimed to examine the impact of Artificial Intelligence (AI) on financial literacy improvement in the banking sector and to compare the significance of each variable in relation to financial literacy outcomes. The research sample consisted of 384 rural households. Findings revealed that AI interventions significantly enhanced financial literacy, particularly among younger users, and that AI-driven tools embedded in mobile applications were more effective compared to those implemented in physical banking branches.

Suggested Citation

  • Jha, Manjari & Mishra, Mukesh Kumar, 2026. "Financial Proficiency in the Age of Artificial Intelligence A Critical Evaluation in Saharsa District in Bihar," EconStor Research Reports 343026, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esrepo:343026
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    References listed on IDEAS

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    1. Niszczota, Paweł & Abbas, Sami, 2023. "GPT has become financially literate: Insights from financial literacy tests of GPT and a preliminary test of how people use it as a source of advice," Finance Research Letters, Elsevier, vol. 58(PA).
    2. Allen, Franklin & Demirguc-Kunt, Asli & Klapper, Leora & Martinez Peria, Maria Soledad, 2016. "The foundations of financial inclusion: Understanding ownership and use of formal accounts," Journal of Financial Intermediation, Elsevier, vol. 27(C), pages 1-30.
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    Keywords

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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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