RESEARCH
Why do we overspend when we go cashless?
As payment methods shift from cash to digital options like credit and prepaid cards, our spending habits are changing, often without us noticing. This study explores how the way people pay influences how much they spend, especially among young consumers in Indonesia.
By comparing cash, credit cards, and prepaid cards, the results show that less transparent payment methods such as cards are linked to higher spending, while cash tends to promote greater control. The findings also highlight the role of financial literacy, showing that those with stronger money knowledge are less likely to fall into the overspending trap.
This research underscores the psychological impact of digital payments. It also emphasizes the importance of combining financial education with thoughtful digital payment design to support younger users in today’s increasingly cashless world.
Does owning a bank account make people financially resilient — or is there more to the story?
Many financial inclusion programs encourage people to open accounts, but this study finds that just having an account is not enough. What truly makes a difference is how people use their accounts — especially whether they save.
Based on national survey data from Indonesia, the research shows that saving through formal accounts helps people feel more secure in emergencies, medical situations, and during economic shocks like the COVID-19 crisis. The takeaway: Access matters, but saving is what builds real resilience.
“Individual’s Cognitive Ability and Investment Choices,” with Michael Lamla and Jose Manuel Liñares-Zegarra. This paper was presented at the 13th International Conference of the Financial Engineering and Banking Society (Paris, France, 2024) and is currently being developed for journal submission.
Is smarter thinking the key to smarter investing?
Education is often linked to better financial decisions, but what if it is not just schooling — it is cognitive ability that really matters? This study uses national panel data from Indonesia to show that people with higher cognitive ability are more likely to invest in financial assets, while the same effect is not observed for owning property or durable goods.
Among those who do invest, higher cognitive ability is linked to larger investment amounts across all asset types. These findings suggest that stronger mental skills help people navigate complex financial choices, and that boosting cognitive ability could support better long-term financial outcomes.
“Fintech Adoption and the Trade-Off between Financial Sustainability and Outreach: Evidence from Microfinance Institutions,” with Jose Manuel Liñares-Zegarra. Currently in progress and being prepared for journal submission.
Does Fintech help microfinance reach more people — or just make it more profitable?
Digital tools like mobile and branchless banking are reshaping the microfinance world. But does Fintech actually expand access for the underserved, or does it come at a cost?
This global study of over 700 microfinance institutions across 84 countries shows that the answer depends on institutional priorities. Commercially-driven institutions tend to preserve profits after adopting Fintech, but often reduce outreach to women and hard-to-reach clients. In contrast, socially-focused microfinance providers are less likely to cut outreach, even as they go digital.
The findings highlight a crucial trade-off in Fintech adoption — between scale and inclusion — and raise important questions about how digital innovation can serve both business goals and social impact.
“The More You Know, The More You Grow: Why Advanced Financial Literacy Matters for Investors.” Currently in progress and being prepared for journal submission.
Does knowing more about money change how people invest?
Not all financial knowledge has the same impact. This study explores how basic and advanced financial literacy influence investment choices among young adults in Indonesia, where formal market participation is low and traditional asset ownership remains common.
The findings reveal that advanced financial literacy encourages stock market participation, while basic literacy alone may not be enough — and can even discourage formal investing when both levels are considered together. For more conservative assets like savings, gold, or property, both types of literacy are linked to ownership, though advanced knowledge plays a smaller role.
These results suggest that advanced financial skills are crucial for navigating complex investments and overcoming behavioural barriers. The study highlights the need to tailor financial education to decision complexity, especially in emerging markets.
