Fintech-Driven Approaches for Strengthening Digital Financial Awareness

Abstract

Digital Financial Services (DFS) have grown significantly in India with the emergence of new technologies such as Unified Payments Interface (UPI), Mobile Banking, Digital Wallets, and Aadhaar linked digital finance. The introduction of these new technologies provides greater access and convenience for individuals who want to transact digitally, however, the ability to effectively and safely take advantage of electronic banking and the products that reside within this environment, is greatly levied on an individual’s level of confidence in understanding digital finance products and services, the security associated with the transaction, and the associated fees and charges of that transaction, in addition to the resulting effect on individual’s ability to make an informed financial experience and/or decision.
This study investigates the contribution that different Fintech based applications and services such as In-App Guidance, Alerts, Simple Interfaces, and Awareness Content provide to build Digital Financial Awareness for its users. As such, a structured questionnaire was distributed to collect primary data for this study so that the author could analyse the relationships among Digital Financial Literacy, Fintech Based Awareness Mechanisms, Awareness Level and Financial Inclusion Outcomes. Based on the findings of this study, Fintech platforms perform the role of not only creating a platform for transaction completion, but also have a dual role of supporting an enriched learning experience within the digital financial ecosystem – thereby increasing a user’s confidence, awareness of risk, and responsible use of financial products. This study demonstrates the role that Fintech Applications play in building Digital Financial Awareness and Supporting Informed Participation by Users.