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

Mariana Costa, Manuel Au-Yong-Oliveira and Ana Moreira ()
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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
Ana Moreira: School of Psychology, ISPA—Instituto Universitário, Rua do Jardim do Tabaco 34, 1149-041 Lisboa, Portugal

Administrative Sciences, 2024, vol. 14, issue 5, 1-20

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.

Keywords: artificial intelligence; consumers; banking; finance; financial innovation; Fintech (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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