The role of financial literacy specifically on awareness of products and services in enhancing financial inclusion: A review of mediating effects of financial behavior
Keywords:
financial literacy; financial inclusion; awareness of financial products; financial behavior; financial decision-making; thematic analysis; financial educationAbstract
This systematic review examines the crucial role of financial literacy in enhancing financial inclusion, particularly in raising awareness of financial services and products. Financial literacy is essential for individuals to comprehend and utilize various financial offerings, enabling them to make informed financial decisions. The objective of this review is to synthesize existing research to demonstrate how improved financial literacy can increase awareness of financial products and facilitate access to these services. A comprehensive search of electronic databases, including PubMed, Web of Science, Science Direct, Emerald Insight, Google Scholar, Research Gate, and Scopus, initially identified 8601 studies. After removing duplicates, 5273 studies were excluded during the screening phase due to irrelevant titles and abstracts, and an additional 2948 studies were eliminated during the eligibility assessment for not meeting predetermined criteria. Ultimately, 49 studies were included in the analysis. The findings reveal significant patterns and gaps in the literature, indicating that individuals with higher financial literacy are more likely to engage in positive financial behaviors, thereby enhancing their access to essential financial services. This review provides valuable insights for educators and policymakers aiming to strengthen financial literacy programs and promote inclusive financial ecosystems, particularly for underserved populations.
References
1. Owusu-Antwi G, Kyeremeh K. Financial literacy and technology adoption among SMEs in West Africa: A comparative study of Nigeria and Ghana. African Journal of Business Management. 2023; 17(3): 45-59.
2. Hasler A, Lusardi A, Oggero N. The importance of financial literacy: Evidence from the 2018 National Financial Capability Study. Journal of Consumer Affairs. 2018; 52(1): 1-24.
3. Adebayo A, Oluwaseun O, Chukwuma I. Financial literacy and technology adoption among small and medium enterprises: A comparative study. Journal of Business and Management. 2023; 15(2): 45-60.
4. Bucher-Koenen T, Lusardi A, Alessie R. Financial literacy and financial behavior: Evidence from the Netherlands. Journal of Economic Psychology. 2022; 88: 102453.
5. Ogunleye AO, Adedeji AA. Assessing the challenges of technology adoption in small and medium enterprises in Nigeria: A case study of Bauchi State. Nigerian Journal of Management Sciences. 2023; 11(1): 78-90.
6. Aliyu I, Usman U, Galoji SI. Organizational Configuration and Performance of Small and Medium Enterprises. International Journal of Intellectual Discourse (IJID). 2019; 2(1).
7. Bire AR, Sauw HM, Maria -. The effect of financial literacy towards financial inclusion through financial training. International journal of social sciences and humanities. 2019; 3(1): 186-192. doi: 10.29332/ijssh.v3n1.280
8. Walker P, Evans C. Financial literacy and its influence on investment behavior: A comparative study. Investment Analysis Journal. 2024; 22(1): 50-75.
9. Singhry HB, Abd Rahman A. Enhancing supply chain performance through collaborative planning, forecasting, and replenishment. Business Process Management Journal. 2018; 25(4): 625-646. doi: 10.1108/bpmj-03-2017-0052
10. Nwachukwu CC, Ugochukwu NC, Okoye LU. Barriers to technology adoption among SMEs in Nigeria: Evidence from Bauchi State. Journal of Small Business & Entrepreneurship. 2023; 35(2): 123-140.
11. Zins A, Weill L. The impact of financial literacy on financial inclusion: Evidence from a cross-country analysis. World Development. 2022; 151: 104706.
12. Khan MA, Ali A, Zafar A. Digital financial services and financial inclusion: A study of awareness and adoption in developing countries. International Journal of Bank Marketing. 2023; 41(2): 345-367.
13. Li J, Zhang Y, Wang L. Financial literacy and its influence on technology adoption in developing regions: Evidence from SMEs in Bauchi State. Journal of Financial Education. 2024; 20(3): 101-115.
14. Lusardi A, Mitchell OS. Financial literacy and planning: Implications for retirement wellbeing. The Journal of Economic Perspectives. 2023; 37(2): 83-104.
15. Hastings JS, Madrian BC, Skimmyhorn WL. Financial literacy, financial education, and economic outcomes. Annual Review of Economics. 2020; 12: 347-366.
16. Khan S, Ali A, Kazi A. Financial literacy and its impact on small and medium enterprises in Pakistan: A case study approach. Journal of Small Business Management. 2022; 60(1): 234-250.
17. Afolabi MO, Ogunleye AO, Nwachukwu CC. The role of financial literacy in technology adoption among SMEs in Nigeria: Evidence from a regional study. International Journal of Entrepreneurship and Small Business. 2024; 42(1): 80-95.
18. Demirgüç-Kunt A, Klapper L, Singer D. The global findex database 2020: Financial inclusion and the pandemic. World Bank; 2020.
19. Kim J, Lee H. The effects of financial literacy on savings behavior: Evidence from a national survey. Journal of Economic Psychology. 2022; 88: 102-115.
20. Williams T, Johnson E. The influence of financial literacy on retirement planning: A study of working adults. Journal of Retirement. 2021; 8(3): 45-60.
21. Adebayo AA, Afolabi MO, Ogunleye AO. Financial literacy and its impact on the performance of SMEs in Nigeria: A comparative analysis. Journal of African Business. 2023; 24(2): 130-145.
22. Perry VG, Morris MD. Who is in control? The role of financial literacy in financial behavior. Journal of Consumer Affairs. 2021; 55(1): 1-24.
23. Ya’u MI, Ahmed AA. Internet Banking Fulfilment and Customer Trust: A Study of Bauchi State Tertiary Institutions. Qeios; 2023.
24. Johnson L, Patel D. Financial literacy and its impact on financial behavior among millennials. Journal of Financial Planning. 2021; 34(2): 56-70.
25. Afolabi MO, Okunola DO. The role of small and medium enterprises in economic development: A case study of Nigeria. International Journal of Business and Management Studies. 2022; 14(1): 45-56.
26. Ozili PK. Community Echelon Theory of Financial Inclusion: A framework for understanding financial access. International Journal of Financial Studies. 2020; 8(3): 45-67.
27. Brown T, Taylor S. The role of financial literacy in enhancing financial decision-making among college students. International Journal of Consumer Studies. 2021; 45(3): 456-467.
28. Peterson J, Smith A, Johnson R. Financial literacy and its impact on financial product awareness. Journal of Financial Education. 2020; 45(2): 123-145.
29. Borenstein M, Hedges LV, Higgins JPT, et al. Introduction to meta-analysis. Wiley; 2011.
30. Braun V, Clarke V. Using thematic analysis in psychology. Qualitative Research in Psychology. 2006; 3(2): 77-101. doi: 10.1191/1478088706qp063oa
31. Mason J. Qualitative researching. SAGE Publications; 2002.
32. QSR International. NVivo 12: The qualitative data analysis software. QSR International; 2021.
33. Carter S, Lee J. The role of financial literacy in promoting sustainable financial behaviors. Sustainability. 2023; 15(1): 234-250.
34. Lombard M, Snyder-Duch J, Bracken CC. Content analysis in mass communication: An assessment of the methodological practices of a new generation of researchers. Journal of Broadcasting & Electronic Media. 2002; 46(1): 2-22.
35. Zhang Y, Chen X. Financial literacy and its impact on financial inclusion in developing countries. International Journal of Development Issues. 2022; 21(2): 123-140.
36. Nguyen H, Tran D. Behavioral finance: Understanding the impact of literacy on saving habits. Financial Behavior Journal. 2023; 15(2): 90-105.
37. Patel N, Kumar R. Understanding the negative relationship between financial literacy and financial behavior: Evidence from urban households. Journal of Financial Counseling and Planning. 2023; 34(3): 200-215.
38. Harris J, Smith K. The impact of financial literacy on financial decision-making in low-income households. Journal of Economic Issues. 2023; 57(1): 23-40.
39. Foster L, Adams R. The relationship between financial literacy and financial stress among college students. Journal of Financial Education. 2021; 47(1): 67-80.
40. Ochepa AA, Usman U, Mallo MJ. Effect of cultural business environment on entrepreneurial intention in nigeria: A proposed model. Lapai International Journal of Management and Social Sciences (LIJOMASS). 2018; 10(1): 353-360.
41. Brown A, Taylor J. The impact of financial literacy on financial behavior: A quantitative analysis. Journal of Financial Studies. 2021; 45(2): 120-145.
42. Nguyen P, Tran Q. Financial literacy and its role in promoting effective budgeting practices. International Journal of Financial Studies. 2022; 10(2): 112-130.
43. Smith J, Brown A, Taylor C. Financial literacy and its impact on financial anxiety: A cross-sectional study. Journal of Financial Counseling and Planning. 2023; 34(1): 15-29.
44. Lee H, Kim J. Financial literacy and its influence on financial inclusion: A comparative study. Journal of Financial Inclusion. 2024; 12(1): 34-50.
45. Patel D, Singh R. The relationship between financial literacy and consumer spending: A meta-analysis. Journal of Economic Behavior & Organization. 2023; 205: 45-60.
46. Garcia M, Lopez J. Financial literacy and its effects on savings behavior: Evidence from a longitudinal study. Journal of Economic Psychology. 2022; 88: 102-115.
47. Johnson K, White R. Understanding the relationship between financial literacy and investment behavior. Financial Services Review. 2023; 32(1): 67-82.
48. Thompson L, Lee M. Financial literacy and its effects on financial planning: Evidence from a national survey. Journal of Personal Finance. 2024; 23(1): 78-92.
49. Adams R, Foster L. Financial literacy and its impact on financial behavior: A study of young adults. Journal of Financial Education. 2021; 47(2): 123-145.
50. Martinez A, Green B. The impact of financial literacy on credit management among young adults. Journal of Consumer Affairs. 2022; 56(4): 789-805.
51. Borden LM, Lee SA, Serido J, et al. Changing college students’ financial literacy: A longitudinal study. Journal of Family and Economic Issues. 2023; 44(1): 1-10.
52. Agarwal S, Driscoll JC, Gabaix X, et al. The age of reason: Financial decisions over the lifecycle. Brookings Papers on Economic Activity. 2022; 2022(1): 1-44.
53. Kim J, Chatterjee S. Financial literacy and investment decisions: A study in the context of emerging markets. Journal of Business Research. 2023; 142: 150-160.
54. Zhou M, Wang Y, Chen S. The relationship between financial literacy and savings behavior: Evidence from China. Journal of Financial Services Research. 2023; 63(3): 345-367.
55. Geyi DG, Yusuf Y, Menhat MS, et al. Agile capabilities as necessary conditions for maximising sustainable supply chain performance: An empirical investigation. International Journal of Production Economics. 2020; 222: 107501. doi: 10.1016/j.ijpe.2019.09.022
56. Tijjani Z, Usman U, Muazu UA, et al. The Moderating Role of Firm Size on the Relationship between Entrepreneurial Marketing and SMEs Performance in Bauchi State, Nigeria. Lagos Journal of Contemporary Studies in Education. 2024; 2(3): 411–427.
57. Khan M, Ali S, Amina R. The impact of financial literacy on technology adoption in small and medium enterprises. International Journal of Entrepreneurship and Small Business. 2022; 18(1): 25-40.
58. Smith L, Johnson E. Financial literacy and its implications for financial inclusion in rural areas. Journal of Rural Finance. 2022; 29(4): 75-89.
59. Lee M, Chen Y. Financial literacy and its effects on financial behavior among young adults. Youth Financial Behavior Review. 2024; 10(1): 45-62.
60. Hwang H, Park HI. The relationships of financial literacy with both financial behavior and financial well‐being: Meta‐analyses based on the selective literature review. Journal of Consumer Affairs. 2022; 57(1): 222-244. doi: 10.1111/joca.12497
61. Kumar A, Singh R. Digital financial literacy and its impact on financial decision-making of women: Evidence from India. Journal of Financial Education. 2023; 49(2): 145-162.
62. Bansal S, Gupta R. FinTech and financial inclusion: Exploring the mediating role of digital financial literacy and the moderating influence of perceived regulatory support. International Journal of Financial Studies. 2023; 11(3): 123-139.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Author(s)
This work is licensed under a Creative Commons Attribution 4.0 International License.
