Applying online educational technology to foster financial literacy: Financial-institution leaders’ insights

Abstract

Financial literacy deficiency is a prevailing problem in United States raising the need for effective financial education. Financial-institution leaders can play a crucial role in promoting financial literacy with their practical experience and expertise. This article sheds new light on the application of online technology to promote financial literacy by exploring the perceptions of financial-institution leaders. Supported by Dewey’s pragmatic constructivist paradigm and the PEST conceptual framework, a qualitative inquiry research through in-depth telephone interviews with 20 leaders from banks and credit unions in Texas was conducted. The findings revealed some common ways to provide online financial literacy education, including website information posting, online financial calculators, external links, social media communication, and partnering with appropriate third parties. The financial leaders perceived that applying online technology would be an enlightening future direction especially for the millennial generation but face-to-face education would remain important. The opportunities included social responsibility fulfillment, corporate image strengthening, marketing, and favorable regulatory consideration. The challenges involved the human and financial resources constraints, IT support, lack of effective evaluation, and how to motivate online learning. Some leaders suggested the use of games, financial incentives, and innovative apps. The policy implications included increase in government support, partnership with schools, embracing financial literacy in the state test, and collaboration among financial leaders, regulators, educators, and policy makers to foster financial literacy for the benefits of the society.