Online Banking Users vs. Branch Visitors: Why Are Their Portfolio Returns Different?

Mamoru Nagano () and Yuki Uchida

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates why portfolio returns of online banking users are higher than those of non-online users. We first demonstrate that households that are eager to improve their level of financial literacy are more likely to use online banking. Second, a marginal increase in risk appetite increases portfolio returns of online users; however, this is not the case for non-online users. Third, online banking promotes debt repayment, and this further encourages risk tolerant investments. In sum, we conclude that financial literacy efforts moderate a positive relationship between use of online banking, risk appetite, and portfolio returns. The positive relationship between use of online banking and debt repayment further increases risk appetite.

Keywords: Online Banking; Portfolio Investmen; Risk Appetite; Debt Repayment; Mortgage Debt (search for similar items in EconPapers)
JEL-codes: G00 G02 G11 (search for similar items in EconPapers)
Date: 2021-04-01
New Economics Papers: this item is included in nep-fle and nep-pay
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https://mpra.ub.uni-muenchen.de/107683/8/MPRA_paper_107683.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:105531

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