REPORT OF EXPERIENTIAL LEARNING ON BANKING AND

FINANCIAL SERVICES

A STUDY ON FINANCIAL LITERACY AMONG PROFESSIONAL

STUDENTS OF VARIOUS COLLEGES IN KERALA

Submitted in partial fulfilment of the requirement for the degree of

Bachelor of Science (Hons.) Co-operation & Banking

Faculty of Agriculture

COLLEGE OF CO-OPERATION, BANKING & MANAGEMENT

KERALA AGRICULTURAL UNIVERSITY
VELLANIKKARA, THRISSUR-680656
KERALA, INDIA
2021

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 CONTENTS

TITLE NO TITLE PAGE NO

1 INTRODUCTION 1

2 STATEMENT OF PROBLEM 2

3 OBJECTIVES 3

4 METHODOLOGY 3

5 ANALYSIS 5

6 FINDINGS 33

7 SUGGESTION 36

8 CONCLUSION 36
 LIST OF TABLES

TABLE NO TITLE PAGE NO

5.1 Age wise classification of respondents

5.2 Gender wise classification of respondents

5.3 Category wise classification of respondents

5.4 College wise classification of respondents

5.5 Year of study of respondents

5.6 Annual income of respondents

5.7 Both parents employed

5.8 Parent’s occupation of the respondents

2.1 Respondents’ possession of bank account

2.2 Purpose of opening bank account

2.3 Type of account respondent possess

2.4 Bank wise classification of respondent’s

where they have account

2.5 Type of bank in which respondents have

opened bank account

2.6 Type of customer ship

2.7 Fee of transaction

2.8 Nature of banking transaction

2.9 Purpose of banking transaction

2.10 Frequency of transaction

2.11 Usage profile of different bank

functions of respondents

2.12 Distribution based on seeking help

for fully KYC form

5.21 Level of financial knowledge of

respondents

5.22 Level of agreement of financial

attitude

5.23 Saving habit wise classification of

the respondents

5.24 Financial behaviour rating

5.25 Financial literacy index

5.26 Awareness level about banking

services

5.27 Frequency of using of banking

services
5.28 Level of comfort of banking
facilities

5.29 Need for course of financial

literacy
1. INTRODUCTION

Financial inclusion is a major step towards inclusive growth. It is the process of ensuring access
to appropriate financial products and services needed by all sections of the society in general and
vulnerable groups such as weaker sections and low-income groups in particular at an affordable
cost in a fair and transparent manner by mainstream institutional players.

Financial inclusion wants everybody in the society to be involved and participate in financial
management.It enhances the financial system of the country comprehensively and strengthens the
availability of economic resources. For making successful use of financial services, people need
to be literate enough to understand the basics of managing money. Therefore financial literacy is
essential for enabling people to make right financial choices.

Financial literacy refers to the knowledge and understanding of financial concepts there by
resulting in the ability to make informed, confident and effective decisions regarding money. It
helps in understanding financial concepts better and enables one to manage their finances
efficiently. Furthermore, it helps in effective money management, making financial decisions,
and achieving financial stability. Lack of financial literacy may lead to making poor financial
choices that can have negative consequences on the financial well-being of an individual.
Government of India through its various agencies like RBI, SEBI, NABARD, State bank of India
etc. have been trying to give financial literacy and financial education to its citizen in the last few
years.

The youth population in India are educated, technology advanced and smarter than the previous
generations. The same youth is considered illiterate when it comes to handling finances while
they are growing up. In many cases, it has been noticed that these young people receive wrong
financial advices from their relatives resulting in potential losses. Major reason could be
attributed to lack of exposure of them to money and financial decision during their young age.
There exists a need for looking into various aspects of financial literacy among youth in order to
provide a suitable model for framing financial literacy modules that would be helpful for Indian
conditions. This is an attempt to fulfil the above requirement.

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2. STATEMENT OF THE PROBLEM

Financial literacy is a set of knowledge, skills and attitudes of citizens necessary to financially
secure themselves and their family in contemporary society. Financially literate citizens are well
versed in issues of money and prices, and are able to responsibly manage their personal or family
budget, including the management of financial assets and financial liabilities with regard to
changing life situations. The financial literacy is a specialized part of a wider economic literacy.
The economic literacy includes the ability to secure some income, considering the consequences
of personal decisions on the current and future income, the orientation on the labor market, the
ability to make decisions about expenditures, etc. With the financial literacy are also associated:
the numerical literacy (concerns particularly the use of mathematical skills to solve numerical
problems), information literacy (such as the ability to search, evaluate and use the relevant
information in the context) and legal literacy (as the orientation in the legal system, an overview
about rights, responsibilities and opportunities). The development of these parts can also be the
means of creating and strengthening the economic, legal and political thinking of citizens.

Inculcating financial literacy among students, precisely undergraduate professional students is

very eminent as they tend to develop their habit during that stage and thus enable them to
develop good money management behavior as working adults. Despite the fact that students have
not started earning money, they are dealing with money and carrying out various financial
transactions. Various studies have been undertaken to analyze levels of financial literacy among
different segments. Still an understanding about the knowledge of the professional students will
be helpful in designing financial literacy programs in much effective ways. Also, it will be
beneficial in assessing the perception of the student community towards various aspects of
money and financial services. In the backdrop of Kerala, this area has been concentrated by only
fewer researchers. In this juncture, this study seeks to research into the level of financial literacy
among professional students in Kerala.

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3. OBJECTIVES

 To examine the extend of financial literacy of professional students.

 To examine the level of awareness about banking services among professional students

4. METHODOLOGY

Location of the study

The study was conducted among the students pursuing various professional degrees in Kerala.

Sampling size

A sample of 200 students from various professional colleges were chosen as the sample size.
Students belong to various Engineering as well as Medical colleges.

Sources of data

The study was based on primary data collection. The data was collected through google forms
circulated to the students pursuing their professional degree currently.

Data collection

The primary data was collected through an unstructured questionnaire and it was administered
through Google Forms. Purposive convenience sampling technique was used for collecting the
samples.

Period of study

The survey was conducted during the 4th week of May,2021.

Variables under study

 Socioeconomic profile of professional students.

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  Banking service usage profile: Public/Private sector bank, Type of account, Period of
customer ship, Frequency of banking transactions, Nature of banking transactions and
Purpose of banking transactions.
 Various services availed: Online banking, Mobile banking, Credit card, Debit card...etc.
 Financial knowledge, attitude & behaviour.
 Usage of any mobile applications related to banking.
 Access to financial institutions: Number of financial institutions in the area and
proximity.
 Awareness level regarding the various financial services: ATM, Credit card, Insurance,
KCC, Overdraft, RTGS/NEFT, Mobile banking, Cheque book, Foreign exchange,
Internet banking, Locker facilities, Direct Benefit Transfer, KYC, Passbook, Minimum
balances, Other service charges, Penalty, interest rates...etc.
 Frequency of usage of various financial services.

Statistical tools used for the study

The primary data was analysed using percentage method and proper indices.

Scope of the study

The study was focused to assess the level of awareness among the professional students of
Kerala. In addition to this, the study also reflects how far the professional students are equipped
or aware of various financial products and services. So this research gives an idea about the
behaviour of new generations; especially with refers to professional student’s; their behaviour,
knowledge and attitude towards the basic as well as modern banking services.

Limitations of the study

 Sample sizes were restricted to 200 respondents.

 Only professional students were taken into consideration.
 The bias from the respondents may affect the findings, suggestions and conclusions.
 In depth study was not possible due to the time constraints.

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5. ANALYSIS

5.1 Financial Literacy among Professional students – An Analysis

A. Socio-economic profile
Socioeconomic status is the social standing or class of an individual or group. It is often
measured as a combination of education, income and occupation .Examination of socio-economic
status often reveals the inequities in access to resources. The study of socio-economic status
helps to understand the perception regarding subject under study, opportunities, achievements
and contribution to society as a social being. A sample of 200 respondents from different
professional colleges was selected and indicators like age, gender, religion, category, college of
study, year of study, annual income, and occupation of parents were taken for the analysis of
socio-economic status of respondents.

Table 5.1 Age wise classification of respondents

Age Frequency Percentage

18-20 32 16
21-23 151 75.5
Above 23 17 8.5
Total 200 100
Source: Compiled from primary data
Table 5.1 is the representation of age group of 200 respondents, who are professional students of
different colleges. Out of the total respondents, 32 students belong to age group 18-20, 151
respondents are between the age of 21 and 23 and 17 students are above the age of 23. Hence the
most prominent age group of respondents is 21-23 years.

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Table 5.2Gender wise classification of respondents

Gender Frequency Percentage

Male 52 26
Female 148 74
Total 200 100
Source: Compiled from primary data

The gender-wise distribution of 200 respondents are shown in the above table in which 52
respondents are male and the rest 148 respondents are female. The observed ratio of male and
female is 13:37 and in percentage wise, their distribution is 26percent and 74 percent
respectively. Hence, the majority of respondents are girls.

Table 5.3 Category wise classification of respondents

Category Frequency Percentage

ST 1 0.5
SC 15 7.5
OBC 105 52.5
General 79 39.5
Total 200 100
Source: Compiled from primary data

The category-wise distribution of 200 respondents is shown in the above table in which majority
of the respondents belongs to OBC category (52.5 per cent) followed by general category (39.5
per cent), SC (7.5 per cent) and ST (0.5 per cent).

Table 5.4 College wise classification of respondents

College Frequency Percentage
Agriculture 66 33
Engineering 39 19.5
Medical 53 26.5

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 Others 42 21
Total 200 100
Source: Compiled from primary data

Table shows the distribution of students based on their colleges. About 33 percentages of
respondents are agricultural students and they are the majority followed by Medical students
(26.5 percentages) out of the total 200 students.

Table 5.5 Year of study of respondents

Year of study Frequency Percentage

First 19 9.5
Second 18 9
Third 53 26.5
Fourth 95 47.5
Fifth 15 7.5
Total 200 100
Source: Compiled from primary data

Table shows the distribution of respondents based on the year of their study. Out of 200
respondents, fourth year students are the majority (47.5 percentage) followed by third year
students (26.5 percentage).

Table 5.6Annual income of respondents

Annual Income Frequency Percentage

Below 1 lakh 67 33.5

Rs. 1 lakh-3 lakh 67 33.5
Rs. 3 lakh -5lakh 30 15
Above 5 lakhs 36 18

Source: Compiled from primary data

Table 5.6 represents the classification of respondents based on the annual income. The annual
income of most of the respondents lie between below 1 lakh and up to 3 lakhs. The percentage of

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respondents who is having annual income from 3 lakh to 5 lakhs is 15 percentage and the annual
income of respondents above 5 lakhs is 18 percentage. Hence most of the respondents have
annual income ranges from less than one lakh to 3 lakhs.

Table 5.7 Both parents employed

Both Employed Frequency Percentage

YES 66 33
NO 134 67
Source: Compiled from primary data

Table 5.7 represents the classification of respondents based on the employment of both the
parents. Only 33 percentage of the respondents have both of their parents working and rest 67
percentage of respondents have either one of their parents working or neither both are working.

Table 5.8 Parent’s occupation of respondents

Occupation Frequency Percentage

Government sector 68 34
Private sector 50 25
Self employed 50 25
Others 32 16

Source: Compiled from primary data

Table 5.8 represents the data of parent’s occupation of respondents. The respondents who have
either one of their parents employed have also responded. And , if both parents are employed the
respondent is able to select 2 options if they are working in 2 different categories. Here, 34
percentage of respondents have both of their parents or one of them working in government
sector. 25 percentage of respondents have both their parents or one of them employed in private
sector or self-employed sector. 16 percentage of respondents have both their parents or one of
them working in some other sectors.

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B. BANKING SERVICES USAGE PROFILE

Financial literacy is important because it equips one with the knowledge and skill to manage
money effectively. Without financial literacy, the actions and decisions one makes or do not
make with respect to savings and investments would lack a strong foundation. It enables the
common man to understand the needs and benefits of the products and services offered by the
banks. Financial literacy helps in understanding financial concepts better and enables one to
manage their finances efficiently. All segments of the society need financial literacy in one form
or the other. Hence the respondents’ banking related profile is also analysed.

Table 5.9 Respondent’s possession of bank account

Sl. no Particulars Frequency Percentage

1 Respondents with bank account 200 100
2 Respondents without bank account - -
Total 200 100
Source: Compiled from primary data

From the Table 5.9 it is found that all the respondents surveyed have their own bank accounts.
Opening bank account primary tool for managing personal finances and it is the primary step in
taking ones financial freedom. But opening account doesn't mean that the person has all the
knowledge related to the financial aspects. Some people may operate the account while some
may kept it idle. Having a bank account can be a great tool for managing your personal finances.
Account statements can help you determine how and where you are spending your money and
put you on track for a reasonable savings plan. It is the important pre-requisite for accessing
most of the other financial products.

Table 5.10 Purpose for opening bank account

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 Sl. No Purpose for opening bank Frequency Percentage
account
1 To deposit savings 120 47.8
2 To avail loans 10 1.99
3 To avail scholarships 94 37.45
4 Other reasons 27 10.75
Total 100
Source: primary data

The Table 5.10 shows the main purpose for opening bank account. It shows that 47.8 percent of
the respondents surveyed opened their bank account to deposit savings. About 37.45 percent of
respondents opened their account to avail scholarships, as the sample is mainly students. About
1.99 percent opened to avail loans from the banks and 10.75 percent opened for other reasons.

Table 5.11 Type of account respondent’s possess

Type of account Frequency Percentage

Current account 13 6.50

Savings account 187 93.50

Total 200 100

Source: Compiled from primary data collection

From the table 5.11, it is evident that the majority of the students have a savings account (93.50
per cent).The savings bank account help aid students to save money according to their needs and
work towards their financial independence in a step by step manner. Liquidity is one of the major
benefits of Savings Bank account. It provides them complete access to money and can make
deposits and withdrawals anytime either directly or using ATM cards. Major purposes identified
from the survey for opening bank accounts by the students like depositing of their savings,
availing loans and scholarships are catered through savings bank account. Savings bank account
also offers interest to the customers.

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Table 5.12 Bank wise classification of respondents where they have account

Name of bank Frequency Percentage

Canara bank 8 4.00

Federal bank 22 11.00
Catholic Syrian bank 10 5.00
ICICI 1 0.50
Kerala Grameen Bank 3 1.50
SBI 128 64.00
IDBI bank 3 1.50
South Indian bank 13 6.50
Union Bank of India 2 1.00
Punjab National Bank 10 5.00
Total 200 100
Source: Compiled from primary data collection

From the above table 5.12, it is evident that the majority of the students have opened an account
in SBI (64.00 percent). It is followed by the Federal Bank (11.00 Per cent), South Indian Bank
(6.50 Per cent), Punjab National Bank, Catholic Syrian bank, Canara bank, Kerala Grameen
Bank, IDBI bank, Union Bank of India and ICICI. State bank of India has wide network of
branches all over India.

Table 5.13 Type of bank in which respondents have opened their bank account

Type of banks Frequency Percentage

Public Sector 152 76
Private Sector 48 24
Total 200 100

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Source: Compiled from primary data collection

The above table shows distribution based on the type of banks. Majority of the students have an
account in public sector banks (76 per cent). Only a few students have an account in private
sector banks (24per cent). One of the major aspects of financial literacy is being able to identify
the category of a financial institution and to find which is suitable for them. It can be inferred
that the students are able to identify the financial institution and have made suitable decisions.

Table 5.14 Period of customer ship

Period of customer ship Frequency Percentage

Less than 1 year 18 9
1-2 year 19 9.5
More than 2 year 163 81.5
Total 200 100
Source: Compiled from primary data collection

From table 5.14 it could be understood that majority of the students have a customer ship of
more than two years with the banks (81.5per cent). This could be attributed to the fact that
majority of sample population belongs to the group of second year and above (refer table 2.5).
Thus we could infer that most of the respondents opened their bank account before entering into
the college or during the initial years of college.

Table 5.15 Frequency of transactions

Frequency of transactions Frequency Percentage

Weekly 36 17.82
Bi-monthly 21 10.39
Monthly 90 44.55
Quarterly 17 8.41
Half-yearly 10 4.95
Yearly 28 13.86

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Source: Compiled from primary data collection

The above table shows how frequently the students carry out a banking transaction. Around half
the students (44.55 per cent) carry out a transactiononce a month. Only 10 students (4.95 per
cent) has a transaction frequency of half yearly. 17.82 per cent of the respondent carries out a
transaction once a week and 13.86 per cent dose a transaction only on a yearly basis.

Table 5.16 nature of banking transaction

Nature of transaction Frequency Percentage

Online 159 78.71
Offline 43 21.28
Source: Compiled from primary data collection

Form the above table it is clear that more than three-fourth (78.71 per cent) of the students
prefers online transaction over offline transactions. This result clearly shows the popularity of
digital transaction platforms like UPI, net banking, online banking etc. Among the students only
43 students (21.28per cent) use offline transactions.

Table 5.17 Purpose of banking transactions

Particulars Frequency Percentage

Payments 102 51
Withdrawal 64 32
Deposits 12 6
Others 22 11

The table shows that the major banking transaction done by the students are payment of money
and it counts for 51 Per cent followed by withdrawal of money i.e. 32 Percent. Since all our
respondents are professional students they can use the banking services for payment of fees,
purchasing of essentials and instead keeping huge amount of money with themselves students

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find it more convenient to use ATM services whenever necessary. The number of respondents
using banking transactions for depositing money is the least (6 Per cent).

Table 5.18 Frequency of visiting bank branch

Sl Frequency of visiting bank Frequency Percentage

no branch

1 Weekly 3 1.5
2 Monthly 11 5.5
3 Bi monthly 21 10.5
4 Quarterly 35 17.5
5 Half yearly 44 22
6 Annually 55 27.5
7 Not at all 31 15.5
TOTAL 200 100
Source: Compiled from primary data collection

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The above table shows the details regarding frequency of visiting the bank branch among the
respondents. Majority of the respondents, i.e. 27.5 percent are visiting the bank branch annually
which is followed by the respondents who are visiting the branch halfyearly, i.e. 22 percent.From
the table it is clear that 17.5 percent respondents visit the branch quarterly.The respondents who
were not at all visited the bank branch, 15.5 percent is more as compared to the
bimonthly,monthly and weekly frequency of visiting.Among the respondents the number of
occasions in which they actually have to visit their bank branches is very less as most of them
prefer online transactions.

Table 5.19 Usage profile of different bank facilities by the respondents

Particulars Frequency Percentage

Taken loans Yes 16 8
No 184 92
Have cheque book Yes 77 38
No 123 62
Used cheque book Yes 32 16
No 168 84
Have debit/credit card Yes 178 89
No 22 11
Source: Compiled from primary data

Table 5.19 discusses the usage of different bank facilities by the professional students. Regarding
the loan facility, only 8 per cent students have taken loan from banks. Educational loan is the
main category of loan taken by most of the students. This may be due to the fact that rate of fee
in colleges and hostel is comparatively lower and a considerable number of students receive
scholarship to cover their educational expenses.

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Among the students, 38 per cent have cheque book and only 16 per cent have used cheque book.
Cheque book is substituted by other payment facilities. Proper use of cheque book may be
unfamiliar to the students.

Majority of respondents (89 per cent) of respondents reported of having a debit/credit card with
them. These days ATM cards issued by most of banks are ATM cum debit cards. This may be
the reason for a higher number of respondents reported of having debit cards with them.

Table 5.20 Distribution based on seeking help for filling KYC form

Particulars Frequency Percentage

Never 124 62
Sometimes 71 35.5
Almost everytime 4 2
Frequently 1 0.5
Total 200 100
Source: Compiled from primary data

From the above table, it is evident that majority of respondents (62 per cent) never seeks help for
filling KYC form. Since the respondents are professional students, they are aware of KYC form
and they don’t find much difficulty in filling it. About 35.5 per cent seeks help from others
sometimes, 2 per cent of students seek help almost every time and mere 0.5 per cent respondents
take help of others frequently. It is mainly because of that some of them are totally unaware of
KYC form.

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C. FINANCIAL LITERACY

a) Financial Knowledge

Financial knowledge helps people to make informed financial decisions through problem
solving, critical thinking, and an understanding of key financial facts and concepts. The level of
financial knowledge of respondent’s is presented in Table 5.21. The respondent’s knowledge
level in various financial aspects is classified into strongly agree, agree, moderately agree,
disagree and strongly disagree. An index less than 60 indicate unawareness, index between 60-68
indicate partial awareness , index between 68 and 84 shows medium awareness, index in the
range of 84 to 92 indicate high awareness and finally index above 92 indicates very high
awareness of the respondents in various financial aspects.

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 Table 5.21 Level of financial knowledge of respondents.
Sl. Statements SA A MA DA SDA Total Index
No Score
No. Scor No. Scor No. Scor No. Scor No. Scor
R e R e R e R e R e
1 I know basic concepts of management of money. 39 195 110 440 44 132 6 12 1 1 780 78
2 I can understand financial terms and concepts 29 145 87 348 73 219 10 20 1 1 733 73
3 I am aware about basic procedures of opening 46 230 101 404 41 123 11 22 1 1 780 78
savings bank account.
4 I’m aware of the KYC documents required 29 145 75 300 64 192 29 58 3 3 698 70
5 The cards makes for a safe mode of payment 57 285 103 412 36 108 3 6 1 1 812 81
6 I am aware of difference between credit card and 76 380 80 320 34 102 10 20 0 0 822 82
debit card.
7 Credit cards can be used to receive cash in advance 53 265 84 336 50 150 12 24 1 1 776 78
8 I am aware of cash back credit cards. 27 135 66 264 67 201 35 70 5 5 675 68
9 ATM cards are more useful for students who are 124 620 62 248 13 39 1 2 0 0 909 91
residing at hostels
10 ATM offers time saving transactions 98 490 80 320 19 57 3 6 0 0 873 87
11 Net banking allows interbank transactions to 93 465 80 320 23 69 3 6 1 1 861 86
accounts with other banks.
12 Mobile wallet is secured and easy way of financial 54 270 87 348 52 156 6 12 1 1 787 79
transaction
13 Insurance coverage protects from a loss recently 37 185 81 324 67 201 13 26 2 2 738 74
occurred.
14 I’m aware of various insurance products-Life 26 130 59 236 76 228 30 60 9 9 663 66
Insurance, General Insurance etc
15 I have an understanding about the schemes 19 95 51 204 78 234 37 74 15 15 622 62

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 implemented by central government as part of
financial inclusion
PMJDY, PMJJBY, PMSBY, APY
16 I am aware of difference between internet banking 44 220 83 332 57 171 16 32 0 0 755 76
and mobile banking
17 I’m aware of interest charges and can calculate the 30 150 76 304 68 204 20 40 6 6 704 70
interest credited to my account
18 I’m aware of minimum balance conditions of my 62 310 88 352 44 132 6 12 0 0 806 81
account
19 I’m aware of various maintenance charges deducted 37 185 90 360 56 168 15 30 2 2 745 75
from my account
20 I can identify fake notes 35 175 65 260 72 216 21 42 7 7 700 70
21 I’m aware of various investment opportunities in 28 140 57 228 75 225 28 56 12 12 661 66
financial markets-stocks, bonds, mutual funds etc
Overall Financial Knowledge Index 76

Source: compiled from primary data

*SDA-Strongly Disagree, DA-Disagree, MA-Moderately Agree, A-Agree, SA-Strongly Agree, No. R-Number of respondent

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Among the statements mentioned, no statement belongs to the index above 92 i.e. none of the
respondents have full awareness about the mentioned financial aspects. Three statements
belongs to the index 84-92.They are usage of ATM card for students who are residing at
hostel, and the index is 91,ATM offers time saving transactions and net banking allows
interbank transactions to accounts with other banks. Respondents are highly aware about
these aspects. Some statements like basic concepts of management of money,basic
procedures of opening savings bank account,cards makes for a safe mode of
payment,difference between credit card and debit card,credit cards can be used to receive
cash in advance,mobile wallet is secured and easy way of financial transaction,difference
between internet banking and mobile banking and minimum balance conditions of my
account etc belongs to 68-84 range. Respondents are moderately aware about these facts.
Some statements having an index between 60 and 68.Respondents are partially aware about
various insurance products-Life Insurance, General Insurance, schemes implemented by
central government as part of financial inclusion, and various investment opportunities in
financial markets-stocks, bonds, mutual funds . Most of the statement’s index belongs to the
range 68-84 indicates that the respondents are moderately aware of thesestatements regarding
the basic concepts of management of money, awareness of financialterms and concepts,
procedures of opening savings bank account, etc. Similarly the statement regarding the
understanding level of students about the schemes implemented by central government have
an index 62 whichmeans students are partially aware of these schemes and also the highest
index is obtained for the usage of ATM for students who are residing at hostels, and the index
is 91. No statements have an index above 92. Most of the statements have an index range
between 68 and 74 which reveals that most of the students are moderately agreeing towards
thestatements like awareness of minimum balance conditions, identification of fake
notes,awareness about various maintenance charges deducted, awareness of interest
charges,awareness about the difference between net banking and mobile banking etc. From
this itcan be understood that no one is having a complete financial knowledge and also no one
isunaware about the financial knowledge. Everyone have some ideas regarding financial
factsand concepts. Since they are students they must familiarise about various financial
conceptsand terms because they have to depend on these for their academic purposes as well.
Alsothe overall financial knowledge index is 76 which mean students have moderate
knowledge in mentioned aspects.

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 b) Financial Attitude

Financial attitude is the state of mind, opinion, and judgment of a person about finances. The
respondents' financial attitudes, as well as their score and index, are listed in the table below.
Strongly agree, agree, moderately agree, disagree, and strongly disagree are the five levels of
respondents' financial attitudes. As the behaviour level is divided into five, the range can be
arbitrarily selected. An index less than 45 indicates the respondents have an extremely negative
attitude towards the above financial aspects. If the index is between 45-58, they have a negative
attitude to those financial aspects. An index between 58-84 indicates that the respondents have a
neutral attitude towards the financial aspects. An index in the range of 85-97 indicates that
respondents have a positive attitude towards the financial aspects, and an index above 97
indicates that they have an extremely positive attitude toward those financial aspects.

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 Table 5.22 Level of Agreement on Financial Attitude
SL Statement Level of Agreement on Financial Attitude Total SI
No SDA D MA A SA Score
No. R Score No. R Score No. R Score No. R Score No. R Score
1 I have good ability to manage my 1 1 9 18 75 225 70 280 45 225 749 75
own finances
2 All money should spent 40 40 77 154 41 123 30 120 12 60 497 50

3 Spending money makes me more 45 45 76 152 36 108 23 92 20 100 497 50

satisfied than saving it
4 I feel in control of my financial 2 2 7 14 60 180 80 320 51 255 771 77
situation
5 Saving for tomorrow is more 5 5 7 14 46 138 71 284 71 355 796 80
important than spending money
6 I am interested in increasing my 5 5 12 24 48 144 60 240 75 375 788 79
financial knowledge
7 I am interested in taking a personal 2 2 10 20 45 135 81 324 62 310 791 79
finance course if offered
8 I feel capable of using my future 0 0 1 2 59 177 65 260 75 375 814 81
income to achieve my financial
goals
Overall Financial Attitude Index 71
Source: Compiled from primary data
*SDA-Strongly Disagree, D- Disagree, MA- Moderately Agree, A- Agree, SA- Strongly Agree, No R- No of Respondents.

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From the statements, none of them have an index range above 97. Most of the statements have an
index range of 58-84. The index value of the first statement is 75. Hence, the respondents
moderately agree that they have a good ability to manage their own finances so they have a neutral
attitude toward finance management. The second statement has an index of 50, which shows the
respondent's negative attitude towards the statement all money should be spent. The index of the
third statement is 50 i.e., the respondents disagreed with the statement, spending money makes them
more satisfied than keeping it. The fourth statement has an index of 77, which can be interpreted
that the respondents have a neutral attitude toward the statement; I feel in control of my financial
situation. The index of the fifth statement is 80. It means respondents moderately agreeing that
saving for tomorrow is more important than spending money. The 6th statement has an index of79,
which shows that respondents have a neutral attitude towards the statement; I am interested in
increasing their financial knowledge. Since the index of the 7th statement is 79, it can be interpreted
that respondents moderately agree that they were interested in taking a personal finance course if
offered. The index of the 8th statement is 81. i.e., respondents have a neutral attitude with the
statement that they feel capable of using their future income to achieve their financial goals. The
overall index is 71, which means that respondents have a neutral attitude towards various financial
aspects.

c) Financial Behaviour

Financial behaviour is the human behaviour that is relevant to money management. The Table 5.23
shows the distribution of respondents based on saving habit. There are five statements regarding the
saving habit of respondents.

The financial behaviour of respondents is mentioned in Table 5.24 along with score and index
obtained. The level of financial behaviour of respondents is arranged into five ranges such as,
strongly agree, agree, moderately agree, disagree and strongly disagree. The behaviour level is
divided into five ranges. An index of less than 70 indicates the respondents have very lower
standards of behaviour towards the given financial aspects. An index between the ranges of 71-73
indicates that the respondents have poor financial behaviour and index between 74-78 shows that
partial favourable behaviour of respondents towards financial aspects. Index between 79-81 shows
that the respondents have high standards of behaviour towards financial aspects and an index above
82 indicates a very higher standard of behaviour towards financial aspect.

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Table 5.23 Saving habit wise classification of respondents.

Statements No. of respondents Percentage

a) Very thrifty, saving money whenever I can 28 14%
b) Somewhat thrifty, often saving money 85 42.5%
c) Neither thrifty nor spending oriented 52 26%
d) Somewhat spending oriented, seldom saving money 28 14%
e) Very spending oriented, hardly ever saving money 7 3.5%
Source: Compiled from primary data

Among the 200 respondents, majority of the respondents (42.5 percent) were somewhat thrifty and
often saves money. i.e., most of them have a habit of saving some money for urgent needs but they
were not very thrifty. Least number of the respondents were very spending oriented and hardly ever
saving money.

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Table 5.24 Financial behaviour rating

Sl.No. Statements Financial Behaviour Rating*

SA A MA DA SDA Total Index
NoR Score No Score NoR Score NoR Score NoR Score score
R
1 I keep track of my expenses on a regular basis 43 215 76 304 57 171 17 34 7 7 731 73
2 I put money aside for savings, future
55 275 83 332 47 141 11 22 4 4 774 77
purchases, or emergencies.
3 I comparison-shop or buy things on sale. 44 220 86 344 53 159 10 20 7 7 750 75
4 Before buying something I think about it
87 435 78 312 24 72 6 12 5 5 836 84
carefully if I can afford it
5 I set long term financial goals and strive to
41 205 77 308 60 180 19 38 3 3 734 73
achieve them
6 I do regularly check my bank statements for
42 210 71 284 56 168 24 48 7 7 717 72
inconsistencies
7 I check the accuracy of transactions 52 260 94 376 35 105 13 26 6 6 773 77
8 My parents involved me in various financial
45 225 82 328 45 135 23 46 5 5 739 74
decisions
9 Rather than visiting a bank all the transactions
65 325 78 312 41 123 13 26 3 3 789 79
are done through digital banking services
Overall Financial Behaviour Index 76
Source: Compiled from primary data

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*SDA-Strongly Disagree, DA-Disagree, MA-Moderately Agree, A-Agree, SA-Strongly Agree, No.R-Number of respondents.

26
 Financial behaviour Range
SDA <70
DA 71-73
MA 74-78
A 79-81
SA >82

Since the index of first statement is 73, it can be interpreted that majority of the respondents are
disagreeing that they keep track of their expenses on a regular basis, that is, they do not behave
according to a regular budget. The second statement shows an index of 77 which means the
respondents moderately agree that they put money aside for savings, future purchases or
emergencies. It shows that the respondents tent to keep a part of money for the future needs or
for savings. The respondents have amoderate favourable behaviour towards compare shopping or
buying things on sale, since the index is 75. The respondents strongly agree that, before buying
something, they think whether they can afford it or not, so that this statement has the highest
index of84. An index of 73 indicate that majority of the respondents disagree that they set a long-
term financial goal and strive to achieve them. From the index number 72, it can be concluded
that majority of the respondents do not regularly check their bank statements for inconsistencies
and they moderately agree to check the accuracy of transactions they made. The respondents
moderately agree that their parents involve in various financial decisions they make. The index
number 74 shows the participation and involvement of families of respondents or students in
decision making regarding their financial aspects. The respondents agree that, they use digital
banking services rather than visit a bank. This statement shows an index of 79.

In this table, all index numbers are within a range of 72 to 84. The respondents moderately agree
in keeping money for future, compare shopping or buying things on sale, checking the accuracy
of transactions they made, involvement of parents in various financial decisions they made.
Respondents agree in the use digital banking services rather than visiting a bank and strongly
agree in considering affordability before buying. But they disagree in keeping track of their
expenses on a regular basis, setting a long-term financial goal and striving to achieve them and

27
regularly checking their bank statements for inconsistencies.Also checking of bank statements
and accuracy of transactions do not show an index above 80. This may be because of lack of
knowledge and lack of seriousness in these financial aspects in daily life. The total financial
behaviour index stands at 76, which is above 74 and hence can be concluded that they have
moderate standards of behaviour towards financial aspects. The respondents have positive
approach in most of the statements regarding financial behaviour.

Table 5.25 Financial literacy index.

Score 28,446
Index 75
Source: Compiled from primary data.

Financial literacy is an essential life skill that has an important impact on individual, family well-
being and the border economy. The level of financial literacy among professional students is
found to be very important. Therefore, moulding a financially literate young generation will have
considerable impact on the economy in a positive way. Table 5.24 shows the overall financial
literacy among the professional students. It shows that financial literacy index is 75 which
indicates moderate financial literacy rate.

Table 5.26 Awareness level about banking service

Sl. No Name of Awareness level Total Awaren

service score ess
Index
Fully aware Partially Not aware
aware
No. Score No. Score No. Score
R R R
1 Deposits 74 222 117 234 9 9 465 78
2 Loans 38 114 103 206 59 59 379 63

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 3 Over draft 24 72 74 148 102 102 322 54
4 Credit card 57 171 125 250 18 18 439 73
5 Debit card 92 276 96 192 12 12 480 80
6 ATM 137 411 59 118 4 4 533 89
7 Cheque book 62 186 117 234 21 21 441 74
8 Mobile 105 315 87 174 8 8 497 83
banking
9 Internet 87 261 100 200 13 13 474 79
banking
10 Locker facility 45 135 86 172 69 69 376 63
11 Insurance 33 99 102 204 65 65 368 61
12 RTGS/ NEFT 33 99 76 152 91 91 342 57
13 Google pay/ 124 372 67 134 9 9 515 86
paytm
Source: Compiled from primary data

Awareness is the knowledge or perception of a situation or fact. The table shows the distribution
of respondents based on awareness about banking services. The level awareness of respondents
is arranged into three ranges such as, fully aware, partially aware and not aware. As the
awareness level is divided into three, the range can be arbitrarily selected, less than index 60
indicates the respondents are not aware to the statements, Index between 60 to 84 indicates
partially aware about the statements, and index above 84 indicates fully aware about the
statements.

Since the index of first statement is 78, it comes under partially aware category and can be
interpreted that respondents are partially aware about deposit service provided by banks. The
statements regarding awareness about Over draft (i=54) and RTGS/NEFT (i=57) shows index
below 60, it indicates that the respondents are not aware of these banking services. Most of the
services listed have an index range between 60 - 84 which reveals that most of the students are
partially aware about these statements like deposits (i=78), loan (i=63) credit card (i=73), debit
card (i=80), cheque book (i=74), mobile banking (i=83), internet banking (i=79), locker facility

29
(i=63) and insurance (i=61). They are not fully aware about these banking services. The
statements regarding awareness about ATM (i=89) and Google pay/ paytm (i=86) have an index
above 84, which shows that the respondents are fully aware about these services. From this it is
understood that respondents were having a good and average awareness about banking services
and only two of the services comes under not aware category. The bank services mainly ATMs,
Google pay /paytm, Debit cards were having top rated awareness index because most of the
students are hostellers and frequently used to withdraw money for paying the mess fee and other
expenses like movie, food etc.

Table 5.27 Frequency of usage of banking services

No. of students

ATM Mobile Internet Transaction

Sl. No Usage of banking
banking banking through
services
cards like
debit/Credit

1 0-5 142(71%) 85(42.5%) 159(79.5%) 138(69%)

2 5-10 31(15.55%) 61(30.5%) 25(12.5%) 32(16%)

3 10-15 20(10%) 37(18.5%) 9(4.5%) 23(11.5%)

4 15-20 7(3.5%) 10(5%) 2(1%) 5(2.5%)

5 20-25 0(0%) 7(3.5%) 5(2.5%) 2(1%)

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 TOTAL 200 200 200 200
Source: Compiled from primary data

Table 5.27 shows the distribution of 200 respondents based on frequency of usage of banking
services. This indicates that majority (79.5%) respondents use internet banking facility (0-5
times) within three months. The reason may be that in these days students are more comfortable
with online transactions rather than rather than approaching banks for depositing or withdrawing
money because of its convenience. Majority of the respondents utilize other services such as
ATM, transaction through debit/credit and mobile banking less than five times within three
months, 18.5 percent were using mobile banking 10 to 15 times within three months, since the
students are more comfortable with mobile banking and 4 percent of students were using it 20-25
times within three months.

S Banki Level of comfort*

l ng VUC UC N C VC Tota Inde
. Facilit No Scor No Sco No Scor No Scor No Scor l x
N y R e R re R e R e R e Scor
o e
1 ATMs 68 68 8 16 12 36 64 256 48 240 616 61.6

2 Mobil 65 65 9 18 20 60 60 240 46 230 613

e 61.3
Banki
ng
3 Interne 56 56 16 32 45 135 62 248 21 105 576
t 57.6
Banki
ng
4 Transa 58 58 13 26 32 96 62 248 35 175 603 60.3

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 ctions
throug
h
cards
like
debit /
credit
Table 5.28 Level of the comfort of banking facilities

Source: Compiled from primary data

*VUC-Very Uncomfortable, UC-Uncomfortable, N-Neutral, C-Comfortable, VC-Very

Comfortable

Table 5.28 shows the level of the comfort of usage of banking facilities by 200 respondents.
Banks provide a range of services in the modern world to attract customers. These facilities also
ensure easy transactions through modern method. For the purpose of study, we have taken only
some facilities like ATM, Mobile Banking, Internet Banking, Transactions through cards like
debit /credit. The level of comfort of respondents in using these facilities is arranged into five
ranges such as, very uncomfortable, uncomfortable, neutral, comfortable, and Very comfortable.
As the comfort level is divided into five, the range can be arbitrarily selected; an index less than
56 indicates the respondents are very uncomfortable in using that facility. If the index is in
between 56-58, they are uncomfortable with the usage of those facilities. An index in between
58-62 indicates that the respondents have a neutral attitude towards the comfortability of using
various banking services. An index in the range of 62-64 indicates that respondents are
comfortable with the usage of these banking facilities and index above 64 indicates that they are
very much comfortable with those banking facilities. The comfortability index for ATM, mobile
banking and transactions through cards like debit /credit is in between 58-62, it indicates that
they are neutral attitude towards those banking facilities. Among the various services stated,
internet banking has the low comfortability index (57.6) indicating either they are not using

32
internet banking facilities or are less comfortable with its usage. Among all the four services
stated, the comfortability index is highest for ATM services (61.6) followed by mobile banking
(61.3). So, it can be concluded that the respondents are comfortable with the usage of these
facilities than other banking facilities.

Table 5.29 Need for a course of financial literacy

Attended any course (%) Course of financial literacy to be

included in syllabus (%)
Yes No Yes No
19 81 91.5 8.5
Source: Compiled from primary data

Table 5.29 shows that 19 percent of students attended courses on financial literacy and 91.5
percent is of the opinion that it should be included in syllabus. It shows that students are
interested to know more about the financial services since banking is a vital part of today’s life
and to improve their levels of financial literacy.

6. FINDINGS

Socio-Economic Profile

 Majority of respondents (75.5 per cent) are belonging to the age group of 21-23 years.
 The observed ratio of male and female is 13:37 and in percentage wise, their distribution
is 26 percent and 74 percent respectively.
 Majority (52.5 percent) of the respondents belongs to OBC.
 About 33 percentages of respondents are agricultural students and they are the majority
followed by Medical students (26.5 percentages), Engineering (19.5 percent) and others
(21 percent). Out of 200 respondents, 19 students are the first year, 18 students are the
second year, 53 students are the third year, 95 students are the fourth year and 15 students
are the fifth year.
 Out of the 200 respondents, 67 belonged to the families having annual income below 1
lakh (33.5 percent) and 67 belonged to the families having annual income between 1 lakh
to 3 lakh (33.5 percent).

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  Only 33 percentages of the respondents have both of their parents working and rest 67
percentages of respondents have either one of their parents working or neither both are
working.
 About 34 per cent of them were government employees, 25 per cent of them were found
to be self-employed and 25per cent of them were working in private sectors.

Banking Services Usage Profile

 All the students possessed bank accounts.
 Majority (47.8 per cent) opened their accounts to deposit their savings.
 Majority of the students have opened a savings account (93.5 per cent).
 Majority of the students have opened an account in SBI (64 per cent).
 Majority of the students have their account in public sector banks (76 per cent).
 Majority of the students have a customer ship of more than two years with the banks
(81.5 per cent).
 Frequency of banking transactions among majority of the students is monthly (44.55 per
cent) and remaining students prefer the banking transactions annually.
 Most of the students are using online transaction (78.71 per cent) compared to offline
transaction (21.28 per cent).
 Payment of bills was the main purpose of banking transaction among the respondents
compared to other purposes.
 About 27.5 per cent of the respondents visit the branch annually.
 Majority of students (92 percent) were not taken any loan from banks.
 Among the students only 38 per cent of them have chequebook. Among them only 16 per
cent of students have used chequebook.
 Majority of them are having debit/credits cards (89 per cent).
 Majority (62 per cent) students never seek any help for filling KYC form. Since the
respondents are, students and they are well aware of KYC form.

Financial Literacy:

Financial Knowledge

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  None of the respondents have full awareness about the mentioned financial aspects.
 Most of the statements have an index range between 68 and 74.It indicates moderate
awareness.
 Highest index is obtained for the usage of ATM for students who are residing at hostels,
and the index is 91.
 No one is having a complete financial knowledge and no one is unaware about the
financial knowledge.
 Everyone have some ideas regarding financial facts and concepts.
 The overall financial knowledge index is 76 which mean students have moderate
knowledge in the mentioned aspects.

Financial Attitude

 None of the statements regarding financial attitude have an index range above 97.
 Most of the statements have an index range of 58-84.The overall financial attitude index
is 71, which means respondents have a neutral attitude towards the statements.
 The eighth statement having the highest index, 81, so they have a neutral attitude with the
statement- I feel capable of using my future income to achieve my financial goals.
 The second and third statements having the smallest index, 50, denote that the
respondents have a negative attitude towards it.

Financial Behaviour

 Majority of the respondents strongly agree in considering affordability before buying.

 Majority of the respondents agree in the use digital banking services rather than visiting a
bank.
 Majority of the respondents moderately agree in keeping money for future, compare
shopping or buying things on sale, checking the accuracy of transactions they made,
involvement of parents in various financial decisions they made.
 Majority of the respondents disagree in keeping track of their expenses on a regular basis,
setting a long-term financial goal and striving to achieve them and regularly checking
their bank statements for inconsistencies.

35
  The total financial behaviour index indicates that the respondents have moderate
standards of behaviour towards financial aspects and have a positive approach in most of
the statements regarding financial behaviour.

Financial Literacy Index

 The overall financial literacy index of the Professional students is 75 which indicates
moderate financial literacy rate
 All the respondents were having an average awareness about banking services and only
two of the services come under not aware category. The statements regarding awareness
about ATM (i=89) and Google pay/ Paytm (i=86) have an index above 84, which shows
that the respondents are fully aware about these services. They are not aware of Overdraft
and NEFT/RTGS.
 Majority (79.5%) of respondents use internet banking less frequently (0-5 times) within 3
months.
 A major percent of the respondents utilize other services such as ATM, transaction
through debit/credit and mobile banking less than five times within three months, 18.5
percent were using mobile banking 10 to 15 times within three months, Since the students
are more comfortable with mobile banking, 4 percent of students were using it 20-25
times within three months
 The study shows that the respondents find more comfort with the usage of ATM
facilities, mobile banking and transactions through debit cards/credit cards. They are less
comfortable with internet banking facility.
 Among the respondents a very least percent (19) of students have only attended courses
on financial literacy and 91.5 percent is of the opinion that it should be included in
syllabus. It shows that students are interested to know more about the financial services
since banking is a vital part of today’s life and to improve their levels of financial literacy

7. SUGGESTIONS
 There should be classes on Financial literacy from high school period

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  A course regarding financial services should be included in the syllabus regardless of
the major subject of the course
 Encouragement in reading financial news paper and discussion on these subjects should
make mandatory.
 Workshops and seminars relating to financial services should be conducted in colleges
 Students of more than 18 years should have basic knowledge about banking transactions
 Students should be provided with orientation regarding effective spending and saving in
early stages of adulthood

8. CONCLUSION
A study on financial literacy among professional degree students across Kerala state was
conducted with a sample of 200 students. Survey was conducted via online survey mode.
Thorough analysis is done and study was conducted based on response of 200
professional degree students. All the respondents were having an average awareness
about banking services and only two of the services come under not aware category. It
shows that students are interested to know more about the financial services since
banking is a vital part of today’s life and to improve their levels of financial literacy.

37