Paper Title
ANALYSIS OF FINANCIAL LITERACY RATE AND ITS IMPACT ON THE BANKING SECTOR OF UAE
Abstract
Financial literacy in simple words is the knowledge about various financial products. Financial literacy is considered to be an important tool to achieve financial inclusion and hence inclusive growth. It enables an individual to understand his financial need and hence plan accordingly. Financial literacy has in recent years gained the interest of various groups including governments, bankers, employers, community interest groups, financial markets, and other organizations, especially in developed countries. The importance of improving financial literacy has increased due to factors including the development of new financial products, the complexity of financial markets, and the changes in political, demographic, and economic factors. As a result of the increase in oil prices, the real gross domestic product per capita of the UAE has rapidly increased: for example, it was AED 85,878 (about US $20,847) in the knowledge of financial concepts is essential for personal financial planning. The S&P Global Fin Lit Survey shows that Country-level financial literacy ranges from 13% to 68%. Hence the main objective of this study is to measure the financial literacy of the respondents. In this study a set of research questions were asked to the respondents to identify the impact of financial literacy on towards banking services. It was found that level of financial literacy was low among the respondents and there is no significant impact of financial literacy. The purpose of this paper is to assess the financial literacy of the UAE individual investors who invest in the financial markets and its impact on the banking sector. In addition, it examines the relationship between financial literacy and the influence of the factors that affect the investment decision.
Keywords: Financial literacy, economic factors, financial products