The Impact Of Financial Literacy On The Adoption Of

Fintech And Defi Applications

by Khairul Anuar Bin Abdollah

February 2022


Financial Technology (FinTech) advancements have shifted the banking and financial industry’s services into a digital mode. Financial literacy alone is no longer sufficient to ensure an individual’s financial well-being or societal welfare. Thus, in the FinTech era, Digital Financial Literacy (DFL) has become an increasingly critical component of education.

The primary issue is that significant gaps exist in DFL, particularly among the B40 groups. As a result, this study will examine the DFL among the B40 in Malaysia. A total of 110 respondents were chosen from 2 sets of questionaires, and a questionnaire adapted from Morgan et al. (2019) was used to assess their DFL on four dimensions: financial knowledge, attitude, skills, and digital financial literacy.

Findings indicate that both Financial Literacy and Digital Literacy do have an impact on a person’s intention to adopt FinTech. This indicates that many of the country’s B40 will adopt FinTech if they are both Financial and Digital Literate. It emphasises the importance of promoting DFL to underserved groups through targeted initiatives in order to foster more inclusive financial and economic development.

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