Financial literacy and its influence on internet banking behaviour

41 Pages Posted: 26 Dec 2019 Last revised: 19 Nov 2022

Date Written: December 5, 2019


This paper presents the survey results for financial literacy among Cypriot adults and reports
their financial aptitude and behaviour. Additionally, it investigates for the first time the
implications of financial literacy on respondents’ usage of digital financial services, particularly
internet banking (i-banking). The focus is on Cyprus, a country that experienced an unprecedented
financial crisis in 2013 that resulted in a bail-in and an enormous subsequent shrinkage
of the banking sector. Cypriot consumers face an ever-increasing need for financial sophistication
to effectively utilise and manage digital banking services. Neverthless, financial literacy is
still low in Cyprus, whereby only 37.33% of survey respondents showed proficiency in financial
knowledge. The findings indicate that there is a statistically positive relationship between the
levels of financial knowledge and the frequency of i-banking use. More importantly, financially
illiterate consumers appear to report - far more often than their financially literate peers - the
lack of trust in i-banking, as well as a lack of self-confidence in financial and digital skills as the
main reasons for not using this service. The findings highlight the interplay between financial
literacy and digital proficiency, and their implication on individuals’ use of i-banking services.

Keywords: financial literacy, internet banking, digital literacy, financial education, national strategy

JEL Classification: D14, D91, G21

Suggested Citation

Andreou, Panayiotis C. and Anyfantaki, Sofia, Financial literacy and its influence on internet banking behaviour (December 5, 2019). Available at SSRN: or

Panayiotis C. Andreou (Contact Author)

Cyprus University of Technology ( email )

School Of Management and Economics
P.O. Box 50329
Lemesos, 3036


Sofia Anyfantaki

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens

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