The Role of Customer Value Proposition in Digital Financial Literacy and Ai-Driven Finance Adoption

Purpose of the Study: The purpose of this study is to investigate the effect of digital financial literacy on customers’ intention to adopt AI-driven digital finance, with customer value proposition (CVP) serving as a mediating variable. Methodology: Surveys were employed to collect data from 466 banking customers in Cameroon, which were analyzed using partial least squares-based structural equation modeling (PLS-SEM). Main Findings: It was revealed that DFL influences CVP, including functional, benefit, symbolic and emotional value, which are involved in the intention to use digital finance. The mediation of the nexus between DFL and the intention to use digital finance was carried out using the four dimensions of CVP. The coefficient of intention to use of 0.669, which indicates that the direct contribution of the customer value proposition to intention to use amounted to approximately 66.9%. Therefore, this study revealed that the customer value proposition significantly predicted the intention to Use AI-driven banking services. Managerial Contributions: The study’s findings have significant implications for managers in the Cameroonian banking industry as the study contributes in developing targeted CVP strategies, investing in DFL initiatives, designing user-centric AI-driven services, fostering trust and transparency and monitoring and evaluating CVP and DFL initiatives. By implementing these strategies, managers in the Cameroonian banking industry can enhance AI-driven digital finance adoption, improve customer satisfaction, and drive business growth.