CAPSULE RESEARCH PROPOSAL

1. Title
Effect of E-Money on the Personal Financial Behavior of Working Millennials

Keywords:
E-Money, Personal Finance, Financial Literacy, Cash basis and Cashless payments

2. Abstract

3. Problem Statement

The study is aimed to determine the functions of e-money and its influence on the
personal financial behavior of working millennials.
Specifically, the study aimed to answer the following questions:
1. What is the degree of agreement of respondents on the function of e-money in
terms of:
a) Security;
b) Speed; and
c) Convenience.
2. What is the level of influence of e-money on the personal financial behavior of
working Millennials in terms of:
a) Spending;
b) Earning;
c) Borrowing;
d) Savings and investing; and
e) Insurance.
3. What recommendations can be made based on the findings?

4. Aims and Objectives

The study will determine the functions of e-money and its impact on working
millennials’ personal financial behavior by:
1. Determining the degree of agreement of working millennials on the functions of
e-money in terms of:
a) Security;
b) Speed; and
c) Convenience
2. Describing the level of influence of e-money on the personal financial behavior
of working millennials in terms of:
 a) Spending;
b) Earning;
c) Borrowing;
d) Saving and investing; and
e) Insurance.
3. Stating the recommendations based on the findings.

5. Significance and Audience

The study's significance is to determine the benefits of e-money and its impact on the
personal finances of working millennials. The institutions and individuals who will benefit
specifically are as follows:

Companies and Banks. This study may provide important information on the usage and
behavior of people under Millennials that could help local companies with their finances
with the help of digital money like distribution of salaries for any type of companies,
offering loans and insurances for lending or insurance companies, and payment channel for
physical and e-commerce shops.

Business Owners. This study could give knowledge to business owners about taking
advantage of the power of e-money as it may affect the purchasing behavior of their
potential clients or customers.

Millennials. As the major participant of this study, this may help people under the age
bracket generation to understand their own personal financial behavior concerning the usage
of e-money.

Future Researchers. This study may provide the researcher with knowledge and
information about the benefits of e-money and its effect on personal finances. They may also
use this study as a foundation, basis, or guide for their related research.

Researchers. This study will help researchers to understand how digital currency works in
people of their generation to their personal level of finances.

The study included 80 working millennials from the 8th District of Cavite. It is made
up of ten working millennials from Alfonso, General Emilio Aguinaldo, Magallanes,
Maragondon, Mendez, Naic, Ternate, and Tagaytay provinces.

6. State of the Art (Literature Review)

This chapter showed the reviews of different related literature and reading materials
from books and other sources which could give deeper intuition and knowledge about the
study.
Security
Digital forms of money, such as central bank digital currencies, privately issued
stable coins, and e-money, are evolving and finding new ways to become more integrated
into people's daily lives. E-money is essentially a digital representation of fiat currency that
is guaranteed by its issuer (Garrido & Nolte, 2021). Customers convert regular money into
e-money, which they can use to conduct transactions with individuals and businesses alike
with ease and immediate effect via an app on their cellphone.

Speed
New payment technologies are reshaping financial systems, commerce, and banking.
In accordance with Duffie (2019), consumers are starting to benefit from increased
convenience, faster speeds, and lower prices in transferring and receiving funds because new
payment methods will be implemented at some point. From the increased competition for
deposits, consumers will earn higher average returns on funds that would otherwise be held
in low-interest accounts.

Convenience
People under the Millennials keep on looking for a good system that will help them
fulfill their needs easily and conveniently. They are eager on finding the best option that best
suits the usage of their finances. In accordance with Chaum (2019), with a growing number
of products and services accepting e-cash as a payment method, we no longer need to carry
as much cash with us when we go out. We even have the option of not going out at all, with
online products and services accepting e-cash payments.

Spending
Two of the most energetic instigators of the rising global economy are information
communication technology (ICT) and internet shopping. E-commerce and ICT are steadily
providing strategic opportunities and effective tools for monetary growth, wealth
redeployment, and equity expansion around the globe. Furthermore, the internet's rapid
growth has paved the way for the information market, e-commerce, and online markets —
the internet is becoming more state-of-the-art in all of these areas. Online transactions are
ushering in a new age for the online retail industry, which is seeking to improve its business
processes. At the purchasing level, factors such as privacy/security, pricing mechanisms,
transaction capabilities, and transaction speed may influence satisfaction. When compared to
the traditional financial system, online buyers are more conscious of the importance of
privacy and security. In the context of website quality, information search, and goods
analysis, customers' intentions to buy online could be an essential factor in predicting their
buying behavior. When it comes to developing B2C connections with clients, trust is
frequently cited as a key factor. Because purchase intentions are influenced by perceived
security, trust, and contentment, website personality is a key component for customer
satisfaction and trust, which can favorably improve buy intention (Aggarwal, & Rahul,
2018).

Earning
 Digital platforms serve as mediators, connecting people looking to make money with
people or enterprises in need of commodities, property, or services in a variety of ways.
Digital platforms come in a variety of shapes and sizes, and they're commonly referred to as
part of the 'gig economy' or 'on-demand economy. (McDonald, Williams, Stewart, & Mayes,
2020).

Borrowing
E-money or digital cash affects the decision of end-users when it comes to creating a
loan, making credits, or borrowing cash. As stated in the (Llanto & Rosellon, 2018)
discussion, it shows that the participants will be more interested when it comes to an
affordable and convenient application that will satisfy the needs of consumers.

Saving and Investing

A study was conducted by (Skogqvist, 2019) entitled “The Effect of Mobile Money
on Savings Behaviors of the Financially Excluded”, the context contains a brief description
that mobile money users are 1.96 times more likely to have a savings product than those
who do not use mobile money, and that users of mobile money are 1.44 and 1.27 times more
likely to save for emergencies and future events, respectively than non-users. Therefore, the
study conducted by the author (Skogqvist, 2019) proves that the effect of mobile money to
save money is also important and the simplicity, safety, and cost of sending and receiving
mobile money among households give it a competitive edge over paper money.

Insurance
In accordance with (Ismail, Alaw, & Yusoff, 2020) study, that Insurance is a method
of mitigating a customer's risk. When making a purchase Insurance this will provides against
unplanned lost profits. When anything bad is happening to the consumer, the insurance
company covers them. The authors (Ismail, Alaw, & Yusoff, 2020) found out that Insurance
companies may bring all of their plans together with the data into the website so that
customers may pick it up before signing up for the plan.

7. Methodology

The study will sample on the working millennials in 8th District of Cavite. The
sample will be stratified-random sampling. The survey strategy will be used for data
collection. A formulated questionnaire will be constructed for the survey and will be
distributed via google forms. Participation of the respondents will be treated with utmost
confidentiality. The data will be analyzed, and the analysis will look for the frequency count,
mean, and will use Kruskal-Wallis to further investigate how e-money is used.

8. Expected Result
9. Project Outline
 Gathered materials needed
 Research or read an article about the said topic.


10. Impact and Bibliography