City Research Online

Epidemic Exposure, Financial Technology, and the Digital Divide

Saka, O. ORCID: 0000-0002-1822-1309, Eichengreen, B. and Aksoy, C. G. (2021). Epidemic Exposure, Financial Technology, and the Digital Divide (21/03). London, UK: Department of Economics, City, University of London.

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 trans-actions in response to epidemics. These effects are larger for individuals with better exante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.

Publication Type: Monograph (Discussion Paper)
Additional Information: Copyright, the authors 2021.
Publisher Keywords: epidemics; fintech; banking
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine
Departments: School of Arts & Social Sciences > Economics
School of Arts & Social Sciences > Economics > Discussion Paper Series
Date available in CRO: 18 Oct 2021 09:36
Date deposited: 18 October 2021
Date of first online publication: 2021
URI: https://openaccess.city.ac.uk/id/eprint/26917
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