REVISITING FINANCIAL CAPABILITY: A SYSTEMATIC LITERATURE REVIEW AND EMERGING RESEARCH AVENUES

Abstract

The available body of research on the burgeoning field of financial capability offers a diverse array of opinions on how to define and assess this concept. While there is a wealth of research available that reviews various measurement domains and indicators, there is a notable scarcity of comprehensive bibliographic analyses in this area. The primary aim of this study is to identify key contributors and central themes, examine current trends, and suggest possible directions for future research in this particular domain. Our systematic literature review (SLR) follows the guidelines set by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA).

In this study, we adopt a methodological framework that combines systematic literature review with bibliometric, network, and content analysis. This scoping review analyses academic literature on financial capability spanning from 2007 to 2023. A total of 363 studies met all the inclusion criteria for this analysis. Through bibliometric analysis, we identified four distinct research clusters and conducted detailed content analyses of the studies within these clusters. The primary focus of research in this field is on the impact of financial capability on financial satisfaction and well-being, as well as on financial behaviour. The research also explores the effect of financial education on enhancing financial capability and the methods used to measure it. Additionally, this study includes recommendations on how to standardize the measurement of components within financial capability and assess financial capability itself.