PROMOTING RESPONSIBLE FINTECH USAGE THROUGH DIGITAL FINANCIAL LITERACY: A CONCEPTUAL PERSPECTIVE FOR MALAYSIAN YOUNG ADULTS
DOI:
https://doi.org/10.35631/AIJBES.829117Keywords:
Digital Financial Literacy, FinTech, Responsible FinTech Usage, Young AdultsAbstract
The rapid growth of financial technology (FinTech) has transformed financial service delivery by providing greater convenience and accessibility while exposing consumers to increasing financial and cybersecurity risks. Although digital financial literacy has been widely recognized as an important determinant of financial behavior, limited attention has been given to its role in promoting responsible FinTech usage, particularly among Malaysian young adults. This conceptual paper aims to propose a conceptual framework explaining the relationship between digital financial literacy and responsible FinTech usage based on Protection Motivation Theory (PMT). Using a conceptual approach, this paper synthesizes existing literature on digital financial literacy, responsible financial behavior, consumer protection, and FinTech. The proposed framework conceptualises digital financial literacy as comprising knowledge of digital financial products and services, awareness of digital financial risks, knowledge of digital financial risk control, and knowledge of consumer rights and redress procedures. These competencies are expected to encourage responsible FinTech usage by enabling young adults to make informed financial decisions, adopt safe digital financial practices, and protect their personal and financial information. This paper contributes to the literature by positioning responsible FinTech usage as a behavioral outcome of digital financial literacy and extending the application of PMT to the digital financial context. The proposed framework provides a foundation for future empirical research and offers practical insights for policymakers, financial institutions and educators in promoting responsible FinTech usage among Malaysian young adults.
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