Impact of financial literacy on the effective use of branchless banking services

Abstract

Understanding personal finance is crucial for making informed financial choices, and many young individuals feel they lack sufficient knowledge in this area.

This study examined the educational aspects related to financial literacy and the utilization of branchless banking services in Nepal. It analyzed the relationship between financial behavior, attitude, knowledge, and influence, along with their impact on branchless banking usage. Additionally, it assessed how personality traits, such as financial behavior and attitude, affect the adoption of branchless banking among employees across various professions.

The study utilizes a descriptive and causal-comparative research design, focusing on 400 employees in Kathmandu through a questionnaire. The independent variables include Financial Behavior, Financial Knowledge, Financial Influence, and Financial Attitude, while branchless banking serves as the dependent variable. The findings suggest a significant linear relationship between the use of branchless banking and the explanatory variables, such as literacy and attitude, at a 5% significance level. Although the relationship between financial influence and branchless banking is positive, it is not statistically significant. However, a strong positive correlation was observed between branchless banking and financial behavior, with a 1% level of significance.

Keywords: Employees, Financial Behavior, Financial Attitude, Financial Knowledge, Financial Influence, Financial Literacy, Branchless Banking