Impact of Digital Financial Literacy on Fintech Adoption Among Gen Z in Bangalore
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I3P106Keywords:
Digital Financial Literacy, Fintech Adoption, Generation Z, Financial Technology, BangaloreAbstract
Purpose: This study aims to examine the impact of digital financial literacy, comprising financial knowledge and skills, perceived trust, and perceived security, on Fintech adoption behaviour among Generation Z in Bangalore. Design/methodology/approach: A quantitative research design was adopted using primary data collected from 250 respondents across Bangalore North, South, East, and Central. A structured questionnaire based on a 5-point Likert scale was used. Data were analysed using SPSS and AMOS (Version 26) using descriptive statistics, reliability analysis, Confirmatory Factor Analysis (CFA), and Structural Equation Modelling (SEM). Locational differences were assessed using ANOVA. Findings: Results reveal that all facets of digital financial literacy substantially predict Fintech adoption behaviour: financial knowledge and skills (β = 0.421, p < 0.001), perceived trust (β = 0.386, p < 0.001) and perceived security (β = 0.402, p < 0.001). In the context of examining Fintech adoption behaviour, the second-order construct – Digital financial literacy has the most significant influence (β = 0.587, p < 0.001). The one-way ANOVA results (F = 4.052, p = 0.008) confirm the differences across locations in Bangalore [21]. Research limitations/implications: The study uses a convenience sample with limited cell counts (low generalizability). Longitudinal and probabilistic designs will likely be used in future studies. Practical implications: Literacy-informed interventions by fintech are strongly recommended, either focusing on knowledge about financial affairs or enhancing security results from platform use. Originality/ value: This research combines second-order SEM modelling and intra-city regional comparison perspectives, thereby providing insights of importance in driving the digital financial literacy-driven Fintech adoption behaviour among Gen Z in India.
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