Digital Financial Innovation, Financial Literacy and Decision Making among Semi-Urban Residents of Osun State, Nigeria

Abstract

The study examines the interplay between digital financial innovation and financial literacy in decision-making. The study also investigates the role of fintech and digital financial tools on financial literacy and financial decision-making. Digital innovation, financial literacy and decision making are crucial elements of personal financing. The study focused on residents of semi-urban and urban areas in Osun State, Nigeria. A sample size of 385 was used, with primary data collected through a self-administered questionnaire with a 5-point Likert-scale. Structural equation model (SEM) was employed in this study. The result demonstrates that digital financial innovation strongly influences personal finances and financial decision processes, while financial literacy directly affects digital financial instrument usage, and fintech produces substantial effects on these two variables. The research recommends promoting financial literacy because it needs to match the pace of financial innovation that substantially affects personal finances and financial choices in Nigeria.