Digital Financial Literacy on Financial Behaviour Among Management Undergraduates of State Universities in Sri Lanka

Abstract

Fintech has transformed the financial landscape by integrating technology, resulting in a rapid surge in digital financial services and products. The growing adoption of these services exposes individuals to various risks, such as data theft, confidentiality concerns, unregulated network operators, security threats, and a lack of proficiency in financial and digital skills. Inadequate financial knowledge may lead individuals to overspend and incur debt, contributing to the failure of sound financial behavior. Therefore, this study aims to address this issue by investigating the impact of digital financial literacy on the financial behavior of management undergraduates in state universities in Sri Lanka. The research model was constructed with the independent variable of digital financial literacy and the dependent variable of financial behavior. The study employed a quantitative approach, drawing a sample of 370 undergraduates from a population of approximately 10,033 management undergraduates at the state universities of Sri Lanka. Data was collected using a structured questionnaire, and four hypotheses were formulated for the study. Statistical Package for Social Sciences (SPSS) version 23.0 was utilized for data analysis, with descriptive statistics, correlation analysis, and regression analysis as the analytical tools. The regression results revealed that digital financial awareness, digital financial skills and knowledge, and the digital financial usage of management undergraduates significantly impact financial behavior. However, digital financial attitude was found to have no significant impact on financial behavior. These findings emphasize the necessity for comprehensive digital financial education programs. Furthermore, the study suggests educational policy implications, recommending collaborations between financial institutions and universities to implement practical initiatives that enhance students' real-world application of digital financial knowledge.