Impact of Fintech Innovation on Digital Financial Literacy in Pakistan Insight from the Banking Industry

Abstract

This study critically examines the impact of fintech innovations on digital financial literacy in Pakistan, utilizing a sample of 102 respondents. Through a quantitative research design, structured surveys were used to collect data and assess the relationship between fintech adoption and financial literacy levels. The analysis reveals that fintech innovations are a significant predictor of digital financial literacy, underscoring the critical role of technological advancements in enhancing financial knowledge and capabilities. The research findings align with established theoretical frameworks, including the Technology Acceptance Model and the Theory of Planned Behaviour, which highlight the importance of perceived ease of use and usefulness in technology adoption. The results demonstrate that fintech innovations significantly contribute to improved financial literacy, facilitating greater financial inclusion and economic empowerment. Policymakers are encouraged to develop regulatory frameworks that support fintech innovation while ensuring consumer protection and data security. Investment in digital infrastructure, particularly in rural areas, is vital to enable broader access to fintech services. Educators should integrate digital financial literacy into curricula at all educational levels, and industry practitioners should focus on developing user-friendly fintech applications and engaging in public-private partnerships. Despite its valuable contributions, the study acknowledges limitations such as its cross-sectional design and reliance on self-reported data, suggesting the need for longitudinal and qualitative research to capture deeper insights and long-term trends. Overall, this research highlights the transformative potential of fintech in enhancing digital financial literacy and provides strategic recommendations for leveraging fintech to achieve broader economic development in Pakistan.