Digital financial literacy prioritizes the knowledge and abilities required to conduct financial transactions on digital platforms. A person who possesses digital financial literacy is capable of utilizing digital devices to enhance their financial decision-making process. The ubiquitous nature of financial technology (fintech) generates opportunities for digital literacy education and training. In the digital age, digital financial literacy is likely to assume a greater significance as an educational component. Individuals assume greater accountability for their financial planning as a result of the emergence of the ‘gig' economy. The objective of this chapter is to provide guidance to educators and others regarding the manner in which fundamental understanding of digital technologies and financial literacy education can equip individuals to utilize fintech. This study focuses to investigate the relationship between digital financial literacy and the financial well-being in the contemporary digital economy.
Top1. Introduction And Background
Technological advancements and the expansion of these tools in daily life have the potential to enhance society's general well-being (Brey, 2018). When it comes to purchasing goods and services on websites like Amazon and other shops, for instance, our smartphones and personal computers offer us information and chances. Imagine, though, the lives of those who are unable to obtain information or utilize technology correctly. Digital financial literacy has become a critical skill for adult educators due to the usage of financial technology, or fintech. Fintech refers to the use of technology and non-traditional approaches in the provision of financial services (Goldstein et al., 2019). Fintech has also played a major role in financial services industry innovation, which has a significant impact on our financial lives. In terms of online banking, mobile payments, app-based investment platforms, and online shopping for a wide variety of goods and services, fintech gives people a myriad of possibilities (Goyal & Kumar, 2020).
The digital transformation in the financial sector refers to the fundamental changes brought about by the integration of digital technologies into traditional financial services and processes. This transformation has significantly impacted how financial institutions operate, deliver services, and interact with customers. Financial literacy, according to Zait and Bertea (2014), encompasses a variety of elements, with the capacity to acquire and apply knowledge as well as the knowledge itself being the primary focus. According to Alexander et al. (2016), digital literacy is the ability to utilize technology to locate, generate, analyse, and convey information. It thus requires both technical and cognitive skills to use the technology. A number of elements of digital financial literacy were outlined by the Organization for Economic Co-operation and Development (OECD, 2018), including understanding of digital financial hazards, consumer rights, and redress channels. These definitions highlight the concepts' diversity and importance because they all call for literacy and knowledge in order to be used successfully.
There are chances to grow financial literacy programs because of the ubiquity of fintech and its effects on the financial services sector. Mention (2019) reports that between 2017 and 2018, the global fintech investment jumped from around $12 billion to over $50 billion. According to Collins and Urban (2019), the growth of fintech could give people the means to take greater responsibility for their financial security. The circumstances in which an individual may fulfil their financial commitments and see a bright financial future are known as perceived financial well-being.