Addressing Financial Challenges in Malaysia and Enhancing Digital Financial Literacy: Insights from Practitioners

Financial literacy is an essential skill for individuals to manage their finances effectively. It involves understanding how to plan, organize, act, and control money to meet one's needs. In today's digital era, digital financial literacy is becoming increasingly important. It refers to the ability to manage financial resources using technology and digital platforms. Like other countries worldwide, Malaysia is undergoing a digital transformation. Enhancing digital financial literacy and addressing the current financial challenges Malaysians face is crucial. The aim of this study is to provide insights into these challenges and the role of digital financial literacy in addressing them. This study was conducted through a focus group discussion interview method that involved twelve participants from various financial backgrounds, including bankers, financial advisors, financial education trainers, fintech company staff, and NGO representatives. The Atlas. ti 24 software was utilized to analyze the data using thematic analysis. The study highlights the financial challenges Malaysians face, such as limited access to banking services, insufficient financial literacy, and a lack of awareness of digital financial products. The findings suggest that digital financial literacy is crucial for promoting responsible financial behaviors, empowering individuals to manage their finances effectively, and ensuring financial well-being in a digitally driven economy. Digital financial literacy also facilitates more accessible access to banking services, which is essential in a cashless society. It emphasizes the significance of understanding financial literacy knowledge to protect individuals from online fraud, identity theft, and other digital risks associated with financial transactions. The findings offer effective insights from industry professionals to improve digital financial literacy, overcome the obstacles that Malaysians face, and help policymakers and practitioners develop effective strategies to promote digital financial literacy and improve financial well-being in the country.