Epidemic exposure, financial technology, and the digital divide

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Title: Epidemic exposure, financial technology, and the digital divide
Author: Saka, Orkun ; Eichengreen, Barry ; Aksoy, Cevat Giray
Organization: Bank of Finland
Department / Unit: Bank of Finland Institute for Emerging Economies (BOFIT)
Series: BOFIT Discussion Papers
Series number: 13/2021
Year of publication: 2021
Publication date: 28.9.2021
Pages: 46
Subject (yso): epidemiat; pandemiat; vaikutukset; teknologia; käyttöönotto; mobiilipalvelut; pankkipalvelut; rahoituspalvelut; Internet; pankit; digitaalinen kuilu
Keywords: Bofit-kokoelma; FinTech; COVID-19; online-palvelut; pankkitoiminta
JEL: G20; G59; I10
Other keywords: epidemics; fintech; banking
Abstract: We ask whether epidemic exposure leads to a shift in financial technology usage and who participates in this shift. We exploit a dataset combining Gallup World Polls and Global Findex surveys for some 250,000 individuals in 140 countries, merging them with information on the incidence of epidemics and local 3G internet infrastructure. Epidemic exposure is associated with an increase in remote-access (online/mobile) banking and substitution from bank branch-based to ATM activity. Heterogeneity in response centers on the age, income and employment of respondents. Young, high-income earners in full-time employment have the greatest tendency to shift to online/mobile transactions in response to epidemics. These effects are larger for individuals with better ex ante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.
Rights: https://helda.helsinki.fi/bof/copyright

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