Does Financial Education Improve The Use of Fintech Services And Boost Sustainable Financial Inclusion? An Investigation Using Extended Technology Acceptance Model

Abstract

Globally, more than 1.6 billion people are deprived of basic financial services, where this major financially excluded chunk belongs to Asia and Africa. Factors like high banking costs, access barriers and lack of financial education contribute towards the high financial exclusion. Though digitalization, as measured by worldwide high rates of mobile phone possession, can solve many financial and social difficulties, yet financial innovation by itself is not enough, bringing awareness to the use and benefits of such services can have a determinantal effect on the success of global goals of financial inclusion. Unfortunately, slight research has highlighted this, hence based on technology acceptance model this study extends the literature and explores the acceptance of digital financial services and the role financial literacy plays towards its attainment using primary data and applying serial mediation approach in a developing country from Asia, Pakistan. The findings indicate and emphasize the significant role of financial literacy and importance of financial technology. The study additionally investigates the surge in fintech usage during the pandemic (COVID 19). Recommendations for the policymakers are also made.