DIGITAL FINANCIAL LITERACY ON FINANCIAL BEHAVIOUR AMONG MANAGEMENT UNDERGRADUATES OF STATE UNIVERSITIES IN SRI LANKA

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