Faculty of Commerce, Law and Management (ETDs)

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    The effect of financial literacy on teachers’ personal financial management in Westrand schools
    (University of the Witwatersrand, Johannesburg, 2022) Budhoo, Pranaksha; Totowa, Jacques
    This research study examines the impact of financial literacy, financial behaviour, and financial wellbeing on educators' financial management, with a specific focus on exploring whether higher levels of education equate to higher levels of financial literacy. Educators play a critical role in society but often face challenges in effectively managing their finances. The objective of this study is to investigate whether educators with higher levels of education possess higher levels of financial literacy, and how financial behaviour and financial wellbeing are influenced. Using a mixed-methods approach, the study collects quantitative data through surveys to measure financial literacy, financial behaviour, and financial wellbeing among a sample of educators. Additionally, qualitative interviews are conducted to gain deeper insights into the experiences, attitudes, and challenges related to personal finances among educators. Preliminary findings suggest that higher levels of education do not necessarily equate to higher levels of financial literacy among educators. Despite having advanced degrees, educators may still exhibit gaps in financial knowledge and understanding. Furthermore, the study reveals that financial behaviour and financial wellbeing are influenced by factors beyond formal education, such as personal experiences, socioeconomic background, and access to financial resources. These findings have significant implications for educational institutions and policymakers. Efforts to improve educators' financial management should focus on targeted financial literacy programs that address specific knowledge gaps and provide practical tools and resources. Additionally, support systems should be established to promote positive financial behaviour and enhance financial wellbeing among educators, considering the diverse factors that influence their financial decision-making processes. By addressing the unique challenges faced by educators in their personal financial management, educational institutions and policymakers can empower them to make informed financial decisions, improve their financial outcomes, and ultimately contribute to their overall job satisfaction, well-being, and effectiveness in the education system
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    Innovative banking, the unbanked and domestic savings in South Africa
    (University of the Witwatersrand, Johannesburg, 2022-07) Umar, Safiya; Mzyec, Mjumo
    This study explores financial literacy and domestic savings and their impact on the economy, with reference to the unbanked low-income group in South Africa. Innovative and “smart” banking may be the ultimate tool that will serve the bottom of the pyramid and grant exposure to financial credit and means of saving. As almost two billion people in emerging markets are unbanked, the establishment of digital financial services is more about forming markets for future customers than about changing current bank–client relations. The greatest challenge affecting the poor around the world is their inability to adequately participate in the economy because of the challenge of being unbanked, which causes low-income groups to be excluded from mainstream financial activities. Poor communities encounter various obstacles when it comes to banking, including the distance to bank outlets, the prevailing risk of carrying cash, lack of trust, paperwork and identity and document requirements. Financial innovation is important in addressing the two key challenges that financial intermediation faces in Africa, namely high risk and high cost of financial services. The research underpinning the theoretical framework is drawn from the Base of the Pyramid market (BoP). The intention is to encourage an inclusive approach in the adoption of technology in the financial services sector, which is envisioned to create shared value socially, environmentally, and commercially. Studies have demonstrated that combating poverty and financial exclusion requires implementation of commercially viable technological innovations to address needs of the low-income market. Key related concepts are innovation in banking, the unbanked and domestic savings. The population under study is financial services professionals in the South African retail banking industry, mainly from Capitec Bank, as this study was inspired by Capitec Bank’s unique business model as one of the first banks in South Africa to focus on serving the bottom- of-the-pyramid client base. This research report adopts a qualitative research method. The research instrument includes key questions that were asked during semi-structured interviews. The findings of the study highlight the importance of constant enhancements of new technologies in the banking industry to address the matter of inclusion of lower-income groups in the economy by ensuring that banking is made accessible and convenient. The premise of innovation in banking is to benefit society and grow the economy in a manner that is useful for generations to come. Mobile banking has been identified as a key instrument in driving bankingto unserved areas in the most cost-effective way
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    Understanding the attributes and characteristics of cryptocurrency ownership: A South African study
    (University of the Witwatersrand, Johannesburg, 2023) Jetha, Hesita; Brahmbhatt, Yogesh
    Background: This study investigates the attributes and characteristics of cryptocurrency investors in South Africa and the attributes of cryptocurrencies that drive investment or non-investment. Objectives: This study aims to explore the demographics and sociodemographic factors of cryptocurrency investors as well as the emotions and biases that impact investors’ decisions to invest in cryptocurrency in order to investigate the individuals who invest in cryptocurrency and the reasons why they invest in cryptocurrency. Methods: A sample of 298 South African residents aged 18 and above completed an online survey that assessed their cryptocurrency ownership, demographics, motives for investment, attitudes toward cryptocurrency, and other relevant variables. Descriptive statistics and logistic regression analyses were conducted to examine the relationship between these variables. Results: The results showed that cryptocurrency investors are more likely to be males, under the age of 35, who are currently employed and have higher income levels. The individuals’ main motives for investing in cryptocurrency were the opportunity to obtain high returns and the new technology that cryptocurrency encompasses. In addition, the results showed that attitudes toward cryptocurrencies significantly impact their decision to invest in cryptocurrency. Conclusion: These findings suggest that more information relating to the risks involved in cryptocurrency investment as well as the potential of cryptocurrency to be used as a medium of exchange is required among individuals to protect themselves against losses and simultaneously allow them to take advantage of the lucrative benefits that cryptocurrencies offer. Furthermore, policymakers, the government, and businesses require more information regarding cryptocurrencies in order to have the necessary policies in place and to stay competitive
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    Financial literacy as a determinant of financial inclusion in Tanzania
    (2022) Mmari, Peter Joseph
    Financial inclusion is considered to be an effective tool to reduce access and usage barriers in the banking sector. Despite its effectiveness, its benefits have not been fully realized by Tanzanians due to both supply and demand side limiting factors. Tanzania records a high level of financial exclusion in the banking sub-sector because 83 per cent of her adult population is un-banked. The high level of exclusion in banking though poses challenges to Tanzanians it is also a global concern and for that it continues to attract more research for effective interventions, (Demirgüç-Kunt, Klapper, Singer, Ansar, & Hess, 2018). The empirical literature on financial inclusion suggests that financial exclusion in the banking sector is explained by various demand-side factors, including the high level of financial illiteracy in societies, (Chikalipah, 2017). In the context of Tanzania, information regarding the role of financial literacy in influencing financial inclusion in the banking sector is limited. In addition, the moderating effect of demographic variables on the ability of financial literacy to influence financial inclusion remains to be unknown and hence the need for this research. In efforts to address this gap, this study uses the theories of Planned Behaviour (TPB), (Ajzen, 1991) and the Technology Acceptance Model (TAM),(Davis, 1989; Venkatesh & Davis, 2000) to develop a measurement model for financial literacy and digital financial literacy as constructs hypothesized to influence individual’s financial inclusion. Following a positivist and quantitative research approach, this study employs the Structural Equation Modelling technique by using Smart Partial Least Square 3, software to examine the causal relationship between financial literacy and digital financial literacy with financial inclusion. Data for the study were collected through a cross-sectional survey conducted on a sample of 440 respondents from eight districts in Tanzania.