Mind the App: Mobile Access to Financial Information and Consumer Behavior

Abstract

We use transaction data from an account aggregation company to study the impact of access to personal financial information from mobile devices on consumer behavior. We study consumers who installed the mobile app after using the app from a PC for several months. We utilize the gradual release of the app on different devices (iPhone, iPad, and Android) to establish a causal relationship conditional on adoption of a mobile app. Consistent with rational inattention models, we find that consumers increase their login frequency, especially during retail peak hours, and cut discretionary spending. Consistent with information-dependent utility models, these effects are stronger among lower-income and high-spending-to-income consumers.