Enhancing Digital Financial Literacy and Inclusion of Consumers: Strategic Insights for Policy and Business Practices
DOI:
https://doi.org/10.5281/zenodo.19982631Keywords:
Digital financial literacy; Digital financial inclusion; Socio-demographic factors.Abstract
This study examined whether digital financial literacy helps improve digital financial inclusion. It focused on a key gap: even when people have digital financial knowledge and skills, they may still face barriers in using digital financial services. Guided by the Unified Theory of Acceptance and Use of Technology and the Financial Literacy Theory of Financial Inclusion, the study also explored how socio-demographic factors relate to digital financial literacy and digital financial inclusion. Using a descriptive-correlational design, data were gathered from 624 adults aged 18 to 79 with internet access through a modified OECD/INFE Digital Financial Literacy Survey Instrument (2024). The study measured digital financial literacy in terms of knowledge, behavior, and attitudes, and digital financial inclusion in terms of product holding and usage. Results showed that respondents had high digital financial literacy but low digital financial inclusion, suggesting that literacy alone does not guarantee access to or use of digital financial services. Gender, income, education, and geographical location were significantly associated with inclusion, whereas age was not. Female respondents showed higher digital financial literacy but lower digital financial inclusion, pointing to possible gender-based access barriers. Limited awareness, low trust in fintech platforms, cybersecurity concerns, weak infrastructure, and transaction costs were identified as major challenges. The study concludes that stronger digital financial literacy must be matched with inclusive systems, better access, and stronger consumer protection to achieve equitable digital financial inclusion.
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