Influence of Digital Financial Literacy on Technology Adoption in the Non-Banking Financial Sector in Jharkhand

This study explores the influence of Digital Financial Literacy (DFL) on the adoption of digital financial services in the non-banking financial sector (NBFS) of Jharkhand, India. As NBFCs increasingly digitize their offerings, a critical concern remains: are users equipped to adopt and trust these technologies? Drawing from the Technology Acceptance Model (TAM) and empirical studies, this research evaluates whether DFL impacts Technology Adoption (TA) and how TA, in turn, influences Perceived Ease of Use (PEOU) and Customer Trust (CT). Data were collected from 285 clients of NBFCs and microfinance institutions across urban and rural regions in Jharkhand using a structured questionnaire. Structural Equation Modeling (SEM) was applied using AMOS to test the hypothesized relationships. Results indicate that DFL significantly and positively influences Technology Adoption (β = 0.61, p < 0.001). Furthermore, TA has a strong effect on both PEOU (β = 0.64, p < 0.001) and CT (β = 0.58, p < 0.001), confirming the feedback mechanism in which usage enhances usability perception and trust. These findings emphasize that improving DFL can serve as a strategic enabler for financial inclusion in digitally underserved states like Jharkhand. The study contributes to the literature by validating DFL as a core antecedent of digital technology adoption in NBFS. It also suggests that trust and ease of use can emerge post-adoption through continued digital engagement. Policymakers and NBFCs are encouraged to invest in DFL programs to drive inclusive and sustainable digital finance in India.