Financial Literacy and Its Impact on The Adoption of Fintech Solutions: A Study of Fractional Shares and Retail Investor Behaviour

Fintech advancements like fractional shares have opened doors that were up until now, incomprehensible to ordinary Investors and has democratized the capital markets. However, the success of these fintech products will be determined by customers' financial literacy. The adoption of fractional shares by retail investors and their financial literacy are the subjects of this study. We had the option to get both subjective and quantitative information from our experiences by utilizing blended strategies. Our examination shows that increased financial literacy works on financial comprehension; investors might better understand and utilize fractional shares, prompting enhanced risk-taking appetite and more educated investment choices. In addition, the differences in financial literacy and the ways in which these differences affect investing practices are the primary focus of the study. To bridge these gaps, the need of implementing specialized financial education programs is emphasized in this research. Fintech platforms also play a fundamental role in advancing financial literacy by integrating educational tools and resources into their services. By encouraging financial literacy and creating a more inclusive financial environment, these platforms have the potential to empower a larger group of ordinary investors.