We use cookies to ensure that we give you the best experience on our website. You can change your cookie settings at any time. Otherwise, we'll assume you're OK to continue.

Durham University

Research & business

View Profile

Publication details for Professor Panayiotis Andreou

Andreou, Panayiotis C. & Sofia Anyfantaki (2019). Financial literacy and its influence on consumers’ internet banking behaviour. 275.

Author(s) from Durham


This study examines the level and antecedents of financial literacy and investigates its
influence on consumers’ internet banking behaviour. The focus is on Cyprus, a country that
experienced an unprecedented financial crisis in 2013 that caused an enormous shrinkage of
the banking sector. Ever since then, banks have been investing in financial innovations, such
as internet banking (i-banking), aiming to enhance customer service and efficiency in the age
of financial digitalization. Notwithstanding, the results show that financial literacy is yet too
low in Cyprus, whereby only 37.33% of the study’s survey adults have a good financial
knowledge proficiency level. The results indicate that financially literate consumers show a
strong preference for frequent use of i-banking, whereby the odds of using i-banking
frequently are increased by more than 64% for one standard deviation increase in the
respondents’ financial knowledge score. The findings highlight the crucial interplay of digital
and financial sophistication, and their positive influence on consumers’ usage of digital
financial services. The evidence from Cyprus also points to policy directions according to
which digital financial education programs should be a central element in national financial
literacy strategies.