Money’s too tech to mention

Digital payments, online banking, investment apps, and automated credit assessments have become routine parts of our everyday financial lives. A study in the International Journal of Business Information Systems argues that because of this the money management skills we need have changed fundamentally.

Financial literacy, the research suggests, is no longer simply about budgeting or understanding interest rates, we need digital skills to cope as well as psychological preparedness and the ability to make sensible economic decisions when faced with always-on apps and notifications. This means we need improved financial education that takes into account the digital tools so that no one is excluded for lack of understanding or access.

The study has reviewed the academic research and found that access to digital financial tools does not automatically lead to better financial outcomes. While financial technology, often referred to as “fintech”, promises convenience and wider access to services, it also exposes users to unfamiliar risks. Such risks might include online fraud, shape lending, and inappropriate investment opportunities. People who lack confidence with digital systems are particularly vulnerable.

The work found that digital competence, the ability to use digital tools effectively and safely, can change financial behaviour by affecting a person’s perceived control. In practice, this means that people who feel capable and in control can use their technical skills to make better financial decisions. That said, even when individuals have access to digital services and the skills to use them, positive results depend on their motivation, self-confidence and their sense of agency.

In modelling the findings from their review, the team saw a reciprocal relationship between motivation and capability. Stronger skills build confidence and intention, while higher motivation encourages additional skill development. The implications are that initiatives that focus solely on technical training may not work well, there needs to be a component of behavioural nudging too to help deliver better results.

Putri, A.M., Wiryono, S.K., Damayanti, S.M. and Rahadi, R.A. (2025) ‘Exploring digital financial literacy through the lens of planned behaviour theory and technology acceptance model’, Int. J. Business Information Systems, Vol. 50, No. 8, pp.1–21.