Trusting Technology: The Role of Financial Literacy and Technological Savviness in Shaping Fintech Adoption

Abstract

This study investigates the impact of financial literacy and technological savviness on the adoption of fintech services, with a specific focus on the mediating role of trust in technology. Eight private banks of the four renowned cities of Punjab were selected in this study and data were collected through a questionnaires by using Google form. To assess the data accuracy and consistency, different statistical tools were applied, including reliability and validity tools. Using structural equation modelling, the findings reveal that both financial literacy and technological savviness significantly and positively influence fintech adoption. Moreover, trust in technology acts as a key mediator in the relationship between financial literacy and fintech adoption, highlighting the importance of user confidence in digital financial platforms. The results underscore the critical role of enhancing both financial knowledge and digital competence to drive fintech usage. These insights provide valuable implications for policymakers and industry stakeholders aiming to increase financial inclusion and promote the sustainable growth of fintech in emerging economies such as Pakistan.