Financial Literacy and Responsible Finance in the FinTech Era: Capabilities and Challenges

Financial literacy is crucial for financial well-being, and FinTech is revolutionizing the financial services industry. Views differ on its impact on personal financial planning, well-being, and societal welfare. Financial education and enlightened financial advising are appropriate policy interventions to enhance financial and overall well-being.

Format: Paperback / softback
Length: 150 pages
Publication date: 25 September 2023
Publisher: Taylor & Francis Ltd

A mounting body of evidence indicates that financial literacy holds significant importance in achieving financial well-being, and the disparities in financial knowledge acquired during early life can significantly contribute to financial and overall well-being in adulthood. Financial technology (FinTech) is revolutionizing the financial services industry at an unprecedented pace, eliciting diverse perspectives on its potential impact on personal financial planning, well-being, and societal welfare. In the face of escalating student debt, heightened digital financial inclusion, and the growing threat of online financial fraud, financial education and enlightened financial advising emerge as appropriate policy interventions to enhance financial and overall well-being.

Financial Literacy and Responsible Finance in the FinTech Era: Capabilities and Challenges takes on this crucial academic and policy discourse by presenting a collection of seven chapters drawn from four parallel streams of literature related to financial literacy and responsible finance. These chapters were originally published as a special issue of The European Journal of Finance.

Chapter 1, titled "Financial Literacy and Responsible Finance in the FinTech Era: An Introduction," provides a comprehensive overview of the book's themes and objectives. It highlights the significance of financial literacy in promoting financial well-being and the need for responsible finance practices in the era of FinTech. The chapter also introduces the four parallel streams of literature that form the basis of the book's chapters.

Chapter 2, "Financial Literacy and Financial Capability: Conceptual Frameworks and Empirical Evidence," explores the theoretical frameworks and empirical evidence linking financial literacy to financial capability. It examines the relationship between financial literacy, financial knowledge, financial skills, and financial behavior and their impact on individuals' financial well-being. The chapter also discusses the challenges and opportunities that FinTech presents for enhancing financial literacy and capability.

Chapter 3, "Financial Inclusion and Digital Finance: Opportunities and Challenges," examines the role of financial inclusion and digital finance in promoting financial well-being. It explores the benefits and challenges of digital financial services, such as mobile banking, online lending, and crowdfunding, and their potential to expand access to financial services for underserved populations. The chapter also discusses the risks and vulnerabilities associated with digital finance and the need for regulatory frameworks to protect consumers.

Chapter 4, "Financial Education and Financial Advice: Policy Interventions and Challenges," explores the role of financial education and financial advice in enhancing financial well-being. It examines the effectiveness of financial education programs, such as financial literacy courses and financial counseling services, in improving individuals' financial knowledge, skills, and behavior. The chapter also discusses the challenges and barriers to providing financial advice, such as conflicts of interest, lack of access to resources, and cultural and societal norms.

Chapter 5, "Financial Technology and Financial Well-being: The Promise and the Peril," examines the potential impact of FinTech on financial well-being. It explores the benefits and risks of FinTech innovations, such as blockchain technology, artificial intelligence, and big data analytics, in improving financial services, reducing costs, and enhancing financial inclusion. The chapter also discusses the challenges and risks associated with FinTech, such as data privacy, cybersecurity, and financial stability.

Chapter 6, "Financial Literacy and Responsible Finance in Practice: Case Studies and Policy Implications," presents case studies and policy implications related to financial literacy and responsible finance. It showcases examples of successful practices and initiatives that promote financial literacy and responsible finance, such as financial education programs, financial inclusion initiatives, and responsible lending practices. The chapter also discusses the challenges and barriers to implementing these practices and the need for policy interventions to support their development and dissemination.

Chapter 7, "Conclusion: Financial Literacy and Responsible Finance in the FinTech Era," summarizes the key findings and conclusions of the book. It highlights the importance of financial literacy and responsible finance in promoting financial well-being and the need for interdisciplinary collaboration and policy interventions to address the challenges and opportunities posed by FinTech.

In conclusion, Financial Literacy and Responsible Finance in the FinTech Era: Capabilities and Challenges is a valuable resource for scholars, policymakers, and practitioners interested in understanding the role of financial literacy and responsible finance in the era of FinTech. The book provides a comprehensive and interdisciplinary perspective on the topic, drawing from a range of literature and case studies to shed light on the challenges and opportunities that FinTech presents for enhancing financial well-being. By promoting financial education, enlightened financial advising, and responsible finance practices, we can work towards a more financially inclusive and sustainable society.

Weight: 453g
Dimension: 280 x 210 (mm)
ISBN-13: 9780367769789