The objectives of this study were to examine the relationships between financial literacy and the use of MBFS and find patterns in MBFS use so as to better inform insights into the factors that can influence uptake of MBFS products and services and have implications for vulnerable population groups who still lack access to basic banking services in the country. Ordered logistic regression was employed to examine the relationship between financial literacy, behaviors, and MBFS use. Additionally, latent class analysis (LCA), a person-oriented approach was used to explore configurations of financial characteristics of MBFS users, with demographic covariates such as gender, age, race, education, income, marital status, and employment status. Findings indicated that an increase in objective financial literacy or financial behavior alone cannot result into increasing MBFS usage, rather, this study shows it is negatively related to the utilization of MBFS, and interestingly an increase in subjective financial literacy resulted in a significant increase in MBFS usage. Results of LCA suggested a 3-class solution (a) high financial behaviors and low MBFS users, (b) low financial behaviors and moderate MBS users, and (c) mixed financial behaviors and high MBFS users.

Accepted Oral Presentation