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The impact of FinTech innovation on digital financial literacy in Europe: Insights from the banking industry

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  • Ferilli, Greta Benedetta
  • Palmieri, Egidio
  • Miani, Stefano
  • Stefanelli, Valeria

Abstract

Within the evolving financial industry, characterised by the proliferation of FinTech and exacerbated by the Covid-19 , this paper investigates the unexplored relationship between financial, social, infrastructural factors and the level of digital financial divide (DFD) in Europe. Applying a difference-in-difference model, the study reveals that innovation in financial services correlates with a reduced DFD, further reinforced by improved digital infrastructure and social progress. However, the post-Covid environment has widened the gap in EU financially illiterate regions. Our results hold relevance for policymakers, governments, and supervisory banking authorities, indicating the most effective areas for intervention in lowering the country's DFD, but they could also support banks in the design of tailor-made digitalization strategies.

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  • Ferilli, Greta Benedetta & Palmieri, Egidio & Miani, Stefano & Stefanelli, Valeria, 2024. "The impact of FinTech innovation on digital financial literacy in Europe: Insights from the banking industry," Research in International Business and Finance, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000102
    DOI: 10.1016/j.ribaf.2024.102218
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    2. Aristei, David & Gallo, Manuela & Vannoni, Valeria, 2024. "Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability," Research in International Business and Finance, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    Financial literacy; Digital skills; FinTech; Financial inclusion; Banking;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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