earticle

영어

The study is about how financial nudging with text messages changes the behavior of microfinance borrowers. This study is the first to test the impact of financial nudging on microfinance borrowers. Focuses on how text message reminders reduce repayment default in microfinance. We use timing and information to test how psychological distance determines a consumer's response to text message reminders for loan payments. The results showed a positive relationship; sending text reminders on the previous day to the due date with the amount of money and ten days before the due without the amount of money increases the chances of borrowers' intention to pay in contrast with sending them ten days before the due date with the amount of money of the payment. Also, the borrowers who received ten days before the due without the amount of money show that their intention to pay behavior stayed long in the post-treatment period due to their strong self-control capability. Our paper is the first in IS literature to show the role of performance ambiguity empirically and to associate the ambiguity with antecedents derived from construal-level theory. Besides, it advises that considering the when, where, and how of mobile targeting strategies is vital and designing mobile text message reminders prudently, how microfinance can mitigate default risks. Therefore, policymakers can benefit from developing a practical policy for mobile applications by considering the contextual factors we proposed.