Abstract
The development of information technology has fundamentally reshaped every industry. It has manifested in the form of financial technology (FinTech), which seems the most prevalent demonstration of digital technology integration into the financial services sector. FinTech has transformed the entire financial system in the form of online/digital banking, mobile/digital payments, and digital currencies, among others. Nevertheless, it is regrettable the fast growth of FinTech has not been matched by a rise in digital financial literacy (DFL).
The role DFL plays in using FinTech products and services was analysed in this study. The study objectives were to determine the level of DFL and FinTech products and services usage among university students. It also investigated how DFL may impact interest in using FinTech products and services. DFL was assessed through four dimensions: knowledge of digital financial products and services, awareness of digital financial risks, knowledge of digital financial risk control, and knowledge of consumer rights and redress procedures. The study participants comprised university students from two universities in Cape Town, South Africa. A quantitative method was utilised, with 375 structured questionnaires distributed to university students through convenience sampling. Descriptive statistics, correlation, regression analysis using IBM SPSS and factor analysis using IBM SPSS AMOS software were used for data analysis in this study, where reliability was assessed using Cronbach's alpha.
The results indicated the majority of students possessed a high knowledge level of digital financial products and services, and awareness of digital financial risks. However, knowledge of digital financial risk control and consumer rights and redress procedures among students was found to be moderate. The results also indicated the majority of students agreed to use and continue making use of FinTech products and services. Finally, it was found FinTech services and products usage is positively and significantly impacted by knowledge of digital financial products, digital financial risk control, and consumer rights and redress procedures. In contrast, digital financial risk awareness was found to insignificantly impact the interest to use FinTech products and services. These findings suggest a level of DFL can assist university students’ decisions in using FinTech products and services.
By providing new insights on students' DFL level and FinTech products and services use, in this study an empirical contribution is made to the existing body of knowledge from a South African perspective. Practically, it is recommended DFL is incorporated into the academic curriculum to improve the level of student DFL, thereby enhancing comprehension of this topic
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and, in turn, increasing FinTech products and services use among students. It is further recommended FinTech firms/financial institutions need to develop or provide more appealing and user-friendly digital financial products/services to entice students to use their services.