ROLE OF DIGITAL FINANCIAL LITERACY IN ENHANCING TRUST INFINTECH PLATFORMS: A SPECIAL REFERENCE TO KERALA

Abstract

The rapid growth of financial technology (FinTech) platforms has transformed the delivery of financial services by improving accessibility, efficiency, and inclusion. However, the widespread adoption of FinTech services is strongly influenced by users’ trust in digital platforms. Digital financial literacy (DFL), which combines financial knowledge with digital skills, has emerged as a critical factor in shaping users’ confidence and trust in FinTech systems. This study examines the role of digital financial literacy in enhancing trust in FinTech platforms by analyzing how users’ understanding of digital financial products, data security, and online risk management affects their trust perceptions. Drawing on technology acceptance and trust theories, the study highlights that higher levels of digital financial literacy significantly improve perceived security, transparency, and reliability of FinTech platforms, thereby strengthening user trust. The paper contributes to existing FinTech literature by positioning digital financial literacy as a key enabler of sustainable FinTech adoption and provides policy implications for regulators, financial institutions, and educators.