The influence of digital financial literacy towards financial inclusion for B40 group in Malaysia

• Main Authors: Rosli, Noorhafiza, Redzuan, Nur Harena
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2022
• Subjects: HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/101392/1/101392_The%20influence%20of%20Digital%20Financial%20Literacy%20Towards%20Financial%20Inclusion%20for%20B40%20Group%20in%20Malaysia.pdf; http://irep.iium.edu.my/101392/2/101392_Certificate.jpeg; http://irep.iium.edu.my/101392/

The development of digital financial services (DFS) plays a significant role in enhancing financial inclusion and improving personal financial management. Indeed, the development has brought to light a new challenge on financial outcomes. The evolution of DFS provides immense opportunities to deepen financial inclusion and expand access to the financial system for underserved which includes B40 income group. In order to patronize the digital services, the users must have knowledge on it known as digital financial literacy. As such, the purpose of this research is to measure the level of digital financial literacy amongst the B40 income group in Malaysia. The influence of demographic factors are also been examined which includes of gender, age, monthly income level, education level, job specification and area of living as the independent variables. In addition, this research focuses on determining the relationship between the level of digital financial literacy and monthly spending behaviour of the B40 group. This research is based on quantitative method of which the data collection is obtained through a questionnaire using survey instrument to 100 respondents by the B40 income group. From the result, it shows that the level of digital financial literacy amongst the B40 income group in Malaysia is considered good with the percentage of 81%. Subsequently, a multiple linear regression analysis has been used to investigate the influence factors which the result shows that two demographic factors; which are age and monthly income are significantly influence towards the level of digital financial literacy. Besides, there is a significant relationship between the level of digital financial literacy and monthly spending behaviour of the B40 income group using correlation analysis. The outcomes of this study would provide an insight and references to the related parties for instant Malaysian government in developing new policy to support the awareness on the digital financial services amongst the society, Bank Negara Malaysia in providing solution on the constraints faced pertaining to this service and digital financial industry in creating the reachable service towards financial inclusion. However there still a few limitations found in this research which may need further analysis particularly on the influence factors that affect the level of literacy.