Empowering Financial Decisions: The Impact of Digital Financial Literacy on Financial Well-Being Through Fintech Adoption

The study responds to the increasing significance of digital financial literacy (DFL) in relation to financial decision-making, fintech adoption, and financial well-being. Although the trend towards a growing reliance on digital financial services continues, little is known about how digital literacy affects the ways in which individuals interact with digital platforms and their financial outcomes. The purpose of this study is to propose a conceptual framework linking DFL, fintech adoption, and financial well-being, especially by identifying the mediating role the fintech adoption has on promoting financial well-being. This study used a narrative review methodology synthesizing literature from relevant academic sources to identify key themes and insights. The studies indicate that digital financial literacy is an important contributor to higher quality financial decision making, which leads to better financial well-being and higher fintech usage. In addition, fintech adoption was found to mediate the nature of the relationship between DFL and financial well-being, indicating that the relationship between digital literacy and financial well-being is contingent on successful fintech adoption. The consequences have significant implications for policymakers, educators, and financial institutions, emphasizing the need for focused educational programming and more inclusive fintech adoption strategies. This study is limited in it uses secondary data; therefore, further research is suggested there to evaluate the long-term impact of digital financial literacy and explore demographic differences in the usage of fintech.