EconPapers    
Economics at your fingertips  
 

Financial Knowledge, Risk Preferences, and the Demand for Digital Financial Services

Christian Königsheim (), Moritz Lukas () and Markus Nöth ()
Additional contact information
Christian Königsheim: University of Hamburg
Moritz Lukas: University of Hamburg
Markus Nöth: University of Hamburg

Schmalenbach Business Review, 2017, vol. 18, issue 4, 343-375

Abstract: Abstract Financial knowledge and risk preferences explain a large part of the variation in important financial decisions of households such as stock holdings, personal debt, retirement savings, or the adoption of financial innovations. Based on a survey among more than 1 700 customers of a German retail bank, we find that both financial knowledge and risk tolerance are significantly positively correlated with the likelihood to use digital financial services. As in previous studies, gender, age, and education additionally influence this decision. Moreover, individuals preferring the traditional banking solution require a higher compensation to switch to a digital service provider than customers of a digital service provider require to switch back to the retail bank, which we interpret as further evidence for the central role of financial knowledge and risk preferences. Our results have implications for both traditional banks and providers of digital financial services.

Keywords: Digital finance; Early adopters; Financial literacy; Risk preferences (search for similar items in EconPapers)
JEL-codes: D12 D14 G21 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41464-017-0040-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:schmbr:v:18:y:2017:i:4:d:10.1007_s41464-017-0040-0

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41464

Access Statistics for this article

Schmalenbach Business Review is currently edited by Alfred Wagenhofer

More articles in Schmalenbach Business Review from Springer, Schmalenbach-Gesellschaft
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-21
Handle: RePEc:spr:schmbr:v:18:y:2017:i:4:d:10.1007_s41464-017-0040-0