Mind the App: Mobile Access to Financial Information and Consumer Behavior

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See all articles by Yaron Levi

Yaron Levi

University of Southern California - Marshall School of Business

Shlomo benartzi

affiliation not provided to SSRN

Date Written: March 17, 2020

Abstract

We use transaction data from an account aggregation company to study the impact of access to personal financial information from mobile devices on consumer behavior. We study consumers who installed the mobile app after using the app from a PC for several months. We utilize the gradual release of the app on different devices (iPhone, iPad, and Android) to establish a causal relationship. Consistent with rational inattention models, we find that consumers increase their login frequency, especially during retail peak hours, and cut discretionary spending. Consistent with information-dependent utility models, these effects are stronger among lower-income and high-spending-to-income consumers.

Keywords: fintech, household finance, behavioral finance, consumption, spending, rational inattention, selective attention, information dependent utility

JEL Classification: D1, G4, G5

Suggested Citation

Levi, Yaron and benartzi, Shlomo, Mind the App: Mobile Access to Financial Information and Consumer Behavior (March 17, 2020). Available at SSRN: https://ssrn.com/abstract=

Yaron Levi (Contact Author)

University of Southern California - Marshall School of Business ( email )

Marshall School of Business
Los Angeles, CA 90089
United States

Shlomo Benartzi

affiliation not provided to SSRN

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