Abstract:
The emergence of financial technology (Fintech) has reshaped the financial sector through the
fusion of technology, leading to a notable proliferation of digital financial services and
products. However, the increased uptake of these services exposes individuals to a spectrum
of risks, including data breaches, concerns regarding confidentiality, operations by
unregulated network entities, security vulnerabilities, and a deficit in proficiency in financial
and digital competencies. Insufficient financial literacy may precipitate imprudent spending
habits and the accrual of debt, thereby undermining prudent financial conduct. Consequently,
this study investigates the impact of digital financial literacy on the financial behavior of
management undergraduates in state universities in Sri Lanka. The research framework
delineates digital financial literacy as the independent variable and financial behavior as the
dependent variable. Employing quantitative methodology, this study sampled 370
undergraduate students from a pool of approximately 10,033 management students enrolled
in state universities across Sri Lanka. Data collection was conducted via a structured
questionnaire underpinned by four formulated hypotheses. Descriptive statistics, correlation
analysis, and regression analysis were employed as analytical techniques. The regression
analysis revealed that digital financial awareness, digital financial skills and knowledge, and
digital financial usage of management undergraduates significantly influenced their financial
behavior. Conversely, digital financial attitudes did not have a significant impact on financial
behavior. These findings highlight the importance of comprehensive digital financial literacy
initiatives. Moreover, the research advocates for educational policy interventions, endorsing
collaborative endeavors between financial institutions and universities to implement
pragmatic initiatives aimed at augmenting students' practical application of digital financial
acumen in real-world scenarios
