Financial Literacy and its Relationship to the Indebtedness of a Bank's Customers

Authors

  • Gerson Orlando Arce-Cruz Business Faculty, Universidad Privada del Norte, Lima, Peru
  • Juan Carlos Valencia-Mayuri Business Faculty, Universidad Privada del Norte, Lima, Peru
  • Wilder Oswaldo Jimenez-Rivera Business Faculty, Universidad Privada del Norte, Lima, Peru
  • William Miguel Jiménez Rivera Business Faculty, Universidad Privada del Norte, Lima, Peru
  • Franklin Cordova-Buiza Research, Innovation and Social Responsibility Department, Universidad Privada del Norte, Lima, Peru; Faculty of Business Sciences, Universidad Continental, Huancayo, Peru

DOI:

https://doi.org/10.34190/eckm.24.1.1564

Keywords:

financial literacy, financial knowledge, financial skills, financial attitudes, indebtedness

Abstract

The success or failure of economic agents, especially families, depends on decision making, which in turn will depend on the capabilities, knowledge and skills acquired through financial education. In this sense, the lack of financial capabilities is considered one of the most pressing problems in today's societies. In Peru, one of the main barriers to financial inclusion is the lack of financial education; these low levels of education affect the contracting of active and passive operations in the financial system. The objective of this research was to determine the relationship between financial literacy and the indebtedness of the clients of a banking agency. The methodology has a quantitative approach, correlational level, cross-sectional and non-experimental design. The population considered is finite, 1600 customers in the bank and the study sample was 310 customers. A survey was used as a technique and a 36-question Likert scale questionnaire was used as an instrument. The correlational results present a Spearman's Rho =0.474; the research also finds that 73.23 % of the bank's clients are interested in knowing the interest rate (TCEA) before contracting a loan on the active operations side and on the passive operations side 54. Regarding savings, 60% of the bank's clients consider it important to save in the financial system, which is consistent with the fact that 65.49% tend to keep their savings in the banking system for a period of more than 12 months, demonstrating confidence in the Peruvian financial system. It is concluded that there is a relationship between financial literacy and the indebtedness of the clients of the Lima branch of a bank, obtaining a positive correlation.

Author Biographies

Gerson Orlando Arce-Cruz, Business Faculty, Universidad Privada del Norte, Lima, Peru

Gerson Orlando Arce-Cruz Degree in Banking Administration from the private University of the North. He has worked in companies of the Peruvian financial system.

Juan Carlos Valencia-Mayuri, Business Faculty, Universidad Privada del Norte, Lima, Peru

Juan Carlos Valencia-Mayuri Degree in Banking Administration from the private University of the North. He has worked in companies of the Peruvian financial system.

Wilder Oswaldo Jimenez-Rivera, Business Faculty, Universidad Privada del Norte, Lima, Peru

Wilder Oswaldo Jiménez-Rivera has a Master's degree in Microfinance and Social Development from the Universidad Alcalá, Spain, and a master's degree in finance from the Universidad Nacional Federico Villarreal, Peru. Public servant in the National Superintendence of Customs and Tax Administration. University Professor.

William Miguel Jiménez Rivera, Business Faculty, Universidad Privada del Norte, Lima, Peru

William Miguel Jiménez Rivera has an economist from the National University Federico Villarreal, Peru, and a master's degree in economics with a mention in finance from the National University of San Marcos, Peru. A university professor, he has researched and published on the Peruvian financial system, industrial organization, and public economics issues.

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Published

2023-09-05