Role of financial technology in enhancing financial literacy in Nepal

Abstract

In the realm of banking, digital banking, or FinTech, is now an influence that changes the ways people acquire investments and build knowledge of finance. The investigation concentrates at the manner that various FinTech components payment channels, distributor websites, and independent financing enhance consumer spending and understanding. FinTech users contributed primary data, that was obtained using a method based on statistics and evaluated through different regression and correlation techniques. All FinTech elements are highly and positively related with financial behavior and knowledge at the 0.05 level, based on the correlation analysis. Peer-to-peer lending possesses a weaker but significant relate with financial behavior (r = 0.181) and a large positive correlation with financial knowledge (r = 0.650). FinTech usage and financial literacy elements have a relationship as shown by the slightly good correlations that payment gateways and reseller platforms exhibit with both financial behavior and understanding of finances. Peer-to-peer lending (β = 0.391, p < 0.01), payment gateways (β = 0.183, p < 0.01), and reseller platforms (β = 0.210, p < 0.01) both significantly increased knowledge of finances, as shown by regression information. Peer-to-peer lending (β = 0.651, p < 0.01) and reseller platforms (β = 0.188, p < 0.01) had an important influence on financial behavior, nevertheless payment gateways don't have a statistically significant effect (p > 0.05). The findings demonstrate that FinTech is vital for improving financial literacy, notably by reinforcing financial knowledge, which in turn promotes better financial behavior. Based to the study, peer-to-peer lending and reseller-based platforms could be emphasised from policymakers, educators, and finance technology firms as useful mechanisms for boosting financial literacy in underdeveloped nations.