Conceptualising the Moderating Role of Digital Financial Literacy on the Relationship between Digital Financial Services Usage and Digital Financial Inclusion

Technological advancement has led to the digitalisation of business activities in the financial services industry, bridging the physical and virtual realms. Consequently, financial services have transitioned to digital platforms, which are now referred to as digital financial services (DFS). However, several determinants hinder the adoption of DFS, which can subsequently impact digital financial inclusion (DFI). Moreover, society has observed a fundamental transformation in the realm of financial literacy (FL), with the emergence of a new concept known as ‘digital financial literacy’ (DFL). Given the study’s objectives, which required a descriptive research design, we employed an exploratory research approach by reviewing a substantial amount of academic literature. Based on the literature review, this study proposes a conceptual framework to examine various barriers to DFS, understand people’s perceptions of DFL and explore its moderating role in the relationship between DFS usage and DFI. The ultimate goal is to foster an inclusive society, facilitating the realisation of the United Nations Sustainable Development Goals (UNSDGs) through financial inclusion (FI) of marginalised, poor and unbanked populations in emerging and underdeveloped economies.