Mid Sweden University

Financial advisors play a crucial role in modern society, providing advice that can significantly enhance individuals’ and households’ financial solutions and contribute to improved financial well-being. However, little is known about financial advisors’ ability to utilize their financial capability and to ensure their own financial well-being and to mitigate financial stress. The paper aims to study the role of financial capability and financial behavior in addressing advisors’ financial well-being, considering the moderating role of lifestyles variables, i.e. lifelong learning, training, and friendship. Based on previous studies, an online survey was developed and sent to a sample of financial advisors in USA. The results are analyzed using Partial Least Squares Structural Equation Modelling

Enhancing household financial capability is important for mitigating severe economic challenges. In the European Union (EU), financial technology (FinTech) solutions are considered critical for managing household finance, but their role in enhancing financial capability is ambiguous. Herein, we measure financial capability in the EU and investigate the effect of FinTech using three waves of panel data from Global Findex (2014, 2017, and 2021) and Eurostat Databases. According to the analyses, EU countries vary greatly in terms of FinTech and financial capability, with countries in the Union's north scoring remarkably high. Results emphasize a considerable effect of FinTech on financial capability and highlight an increase in the latter when the Human Development Index increases. Practical guidelines for measuring financial capability are also presented to assist countries that require additional efforts to effectively address financial capability challenges. 

Ensuring a sound level of financial well-being and mitigating financial stress are essential aspects of life in Nordic countries. Proper knowledge of financial matters and sound financial planning are important to secure these aspects. Considering earlier research, the current study develops a questionnaire and collects over 1000 valid responses from various regions in Sweden. The study utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationships between financial capability, on the one hand, and financial well-being and stress on the other hand. Moreover, the study considers the mediation role of financial planning and financial vulnerability. In a further step, the study uses the dichotomization technique to test the moderating role of financial technology and social media usage, several saving habits, and having a low-quality borrowing profile (loan rejection and serving a loan with a high-interest rate). The study concludes with insights that help households improve financial well-being and control the negative consequences of financial stress.

Denna kortrapport baseras på en studie som dels mäter hushållens finansiella förmåga i 24 EU-länder, dels undersöker sambandet mellan användningen av finansiell teknologi (FinTech) och finansiell förmåga. Den data som användes är hämtad från Världsbanken för åren 2014, 2017 och 2021 samt Europeiska kommissionen. Enligt de resultat som Mustafa Nourallah och Peter Öhman vid CER redovisar här nedan har EU-länderna en stor variation när det gäller såväl medborgarnas finansiella förmåga som användningen av FinTech-tjänster. Länderna i de norra delarna av unionen får jämförelsevis höga poäng. Vidare har FinTech en positiv inverkan på finansiell förmåga. Resultaten förblir stabila även efter kompletterande tester. Studien visar även att ett lands index för mänsklig utveckling har en positiv effekt på hushållens finansiella förmåga. Dock finns inget signifikant samband mellan vare sig inkomst och finansiell förmåga eller ekonomisk frihet och finansiell förmåga. När de undersökta länderna delades in i två grupper utifrån hur väl de implementerat Europa 2020-strategin, bekräftas betydelsen av FinTech för hushållens finansiella förmåga, men det framgår också att det i synnerhet gäller för den grupp av länder som bäst följer denna strategi, däribland Sverige. Forskningsresultaten har tidigare publicerats i den internationella tidskriftsartikeln “Financial technology and financial capability: Study of the European Union” (Nourallah, Öhman och Hamati, 2024).

This thesis on financial technology (FinTech) solutions consists of twosuccessive phases, each including two articles. The first phase targets the loyalty of young bank customers (YBCs) to mobile bank applications (MBAs). One of the articles of this phase investigates the relationships between cognitive, affective, and conative antecedents, on one hand, and loyalty on the other. The other article identifies the relationships between usability, responsiveness, reliability, and customer satisfaction, on one hand, and loyalty on the other. Two electronic questionnaires were sent to 500 YBCs in Sweden, 146 responded, and covariance-based structural equation modelling was employed to analyse the data. The resulting model of YBCs’ loyalty to MBAs concludes that three attributes, i.e., memorability, confidentiality, and understandability, along with ease of use, ease of information search, and ease of navigation, determine the satisfaction of the younger generation and their loyalty to MBAs. The second phase focuses on the antecedents of building trust in financial robo-advisors (FRAs) based on the perceptions of young retail investors (YRIs). One of the two articles of this phase investigates building trust in technology through utilizing risk perspectives and the behavioural finance paradigm. The other article targets initial trust from the perspectives of the management discipline and the unified theory of acceptance and use of technology. It tests whether the cultural variable ssuggested by previous studies moderate the relationship between the seantecedents and initial trust. Two electronic questionnaires were sent to YRIs in Sweden and Malaysia, and partial least squares structural equation modelling was employed to analyse the data. The resulting model of YRIs’ initial trust in FRAs emphasizes the essential role of personal attributes (trust propensity and decision style), information, and technological features in addressing initial trust, which in turn determines the behavioural intention to use FRAs. Most findings are similar in the two countries, with some indications of cultural differences in what influences young investors’ initial trust in robo-advisors. For example, price is perceived as more important in Sweden, while social networks seem to be more important in Malaysia. Despite some limitations, the thesis has novel implications for theory and practice. Synthesizing the results suggests that ease of use and cognitive features are highly important to FinTech solutions.

Purpose: The purpose of this study is to describe and analyse the effect of a set of determinants on initial trust and behavioural intention to use financial robo-advisors (FRAs). Design/methodology/approach: The theory of perceived risk and the behavioural finance paradigm were used to develop a conceptual model of retail investors’ initial trust in FRAs. Data collected from 554 young retail investors (YRIs) from Sweden and Malaysia were analysed using structural equation modelling. Findings: The results of this study indicate that the amount of public information, social media information-seeking and a rational decision style are significantly related to initial trust in FRAs, which in turn is significantly and positively related to the behavioural intention to use this technology. However, none of the risks under study significantly affect the initial trust in FRAs. Practical implications: Information is vital to inducing YRIs to rely on FRAs, so the more public and social media information is available, the higher their intention to use this technology. However, YRIs vary in decision style, and the results suggest implementing a more sophisticated system than the current “one-size-fits-all” approach to YRI behaviour. Originality/value: The empirical-based model enhances the knowledge of the initial phase of trust-building, when YRIs lack sufficient experience of FRAs. By collecting data from two countries, the study’s novel conclusions may help in developing effective FRA services for the youth segment. 

Financial robo-advisors (FRAs) are a cutting-edge financial technology offering automated services that relies on artificial intelligence. However, few studies have investigated how young retail investors (YRIs) build trust in FRAs. Another neglected area is whether FRAs’ universal (“one-size-fit-all”) model will succeed or should take account of cultural dimensions. Based on the initial trust perspective and the unified theory of acceptance and use of technology, this study develops a conceptual model of YRIs’ initial trust in FRAs, testing it in two countries from different parts of the world, i.e., Malaysia and Sweden. The results indicate that trust propensity, performance expectancy, and hedonic motivation address initial trust in FRAs, which in turn drives behavioural intention to use this technology. Although most results are similar in the two countries, there are indications of cultural differences regarding what influences YRIs’ initial trust in FRAs

The European Union's strategy concerns sustainable use of technology matters and attempts to increase European individuals’ awareness of these issues. However, recent studies highlighted enquires regarding the awareness of individuals and their consideration of sustainable issues when they buy or use their devices. Based on recent data, issued in 2022, this study attempts to assess the sustainable use of technology in 23 European countries, i.e. 22 members of the European Union – all European Union, but not Austria, Belgium, Czech Republic, Croatian, and Spain – and Norway. The analysis shows that European countries are diversified in terms of sustainable use of technology and conclude that Nordic countries are ranked high regarding the sustainable use of technology. The study introduces practical guidelines regarding the sustainable use of technology within European Countries and highlights countries that require more effort to address related issues.

Purpose – This study investigates how entrepreneurial leadership fosters market orientation, bankinnovativeness and bank performance; it also investigates how market orientation contributes to brandorientation, bank innovativeness and bank performance.

Design/methodology/approach – In total, 1500 questionnaires were distributed to 100 bank branches inIndonesia (500 to managers and 1000 to employees); 300 responses (20% response rate) were used for furtherstatistical analysis.

Findings – The results confirmed the existence of relationships among entrepreneurial leadership, marketorientation, bank innovativeness, brand orientation and bank performance. The role of entrepreneurialleadership in fostering market orientation, bank innovativeness, brand orientation and bank performancedemonstrates that leaders can motivate employees to complete their tasks.

Practical implications – The findings suggest that entrepreneurial leadership, new ideas and innovativeproducts and services can foster bank

performance.Originality/value – The emerging banking industry in Indonesia has witnessed changing market conditions.Banks will benefit from being more market-driven and diverse in their customer relationships togenerate value.