ZBB 2023, 35
The 24/7 anywhere branch: Mobile-banking improves financial decision-making – or does it?
Mobile-banking – making banking transactions through mobile devices like smart phones – might improve financial decision-making by customers. My study finds customers to retrieve information about their financial situation more often after adopting mobile-banking. In addition, I document that the higher transparency about the financial situation is associated with improved financial-decision-making of mobile-banking users. Concretely, I find mobile-banking adopters to suffer less from high-interest overdraft debt. Additionally, mobile-banking adopters reduce overdraft interest and fees by reducing consumption spending, increase credit card utilization and transfer liquidity from savings accounts in times of overdraft. Finally, I show that those mobile-banking adopters, who formerly did not use the online banking service of the bank, benefit from mobile-banking adoption the strongest.
Contents
- I. Introduction
- II. Institutional Setting
- III. Data
- IV. Mobile-Banking Adoption and Financial Transparency
- V. Effect of Mobile-Banking Adoption on Customers Liquidity Management
- 1. Avoidance of Overdraft
- 2. Liquidity Management During Times of Ovedraft
- 2.1 Effects of Mobile-Banking on Spending Behavior
- 2.2 Effects of Mobile-Banking on Credit Card Usage
- 2.3 Effects of Mobile-Banking on Savings Transfers
- 3. Heterogenous Treatment Effects for Offliners and Onliners
- VI. Discussion and Conclusion
- *
- *)Institute of Financial Services, University of Giessen
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