Digital Financial Literacy and Investment Decision-Making: The Role of Cognitive, Emotional, and Behavioral Factors

The rapid expansion of digital financial services has transformed the way individuals access financial information and make investment decisions. This study examines the role of digital financial literacy in investment decision-making by integrating cognitive, emotional, and behavioural factors within a unified behavioural-finance framework. The study adopts a quantitative, descriptive, and explanatory research design and considers a sample of 186 individual investors with investment experience and exposure to digital financial platforms. Data are collected through a structured questionnaire using a five-point Likert scale. Digital financial literacy is assessed through digital financial knowledge, skills, information evaluation, risk awareness, and safe use of digital financial services, while cognitive, emotional, and behavioural factors are examined as psychological determinants of investment decisions. Descriptive statistics, reliability analysis, Pearson correlation, and regression analysis are employed to evaluate the proposed relationships. The findings indicate positive and significant relationships between digital financial literacy, cognitive factors, emotional factors, behavioural factors, and investment decision-making. Digital financial literacy emerges as the strongest predictor, followed by behavioural and cognitive factors. The study highlights that financial knowledge alone may not ensure rational investment behaviour and emphasizes the importance of psychological awareness, self-control, risk perception, and responsible use of digital financial platforms. The findings provide useful implications for investors, financial educators, FinTech platforms, investment advisors, and policymakers seeking to promote informed, disciplined, and responsible digital investment behaviour.