Decoding Financial Literacy Gaps and Their Influence on Modern Banking Choices

Abstract

The contemporary financial system depends on the financial literacy of the individuals to determine how individuals carry themselves in the banks. Since digital banking service is growing at very high rates, customers are the only ones who can be presumed to be making good decisions, which include saving, investments and loans, and electronic payment systems. However, there is a high degree of differentiation of financial literacy at each level of the society, which affects the decisions of the banking and in certain instances, poor financial decision-making is at stake. The proposed research paper will review financial literacy among the customers and the effect of the demand of the non- outdated banking products and services on lack of literacy. The article illustrates the financial literacy and decision to use it in the banking predicament via descriptive and inferential statistics. They have pointed out that, the degree of financial literacy is reflected by the enhanced adoption of new banking services and automatic decision-making as far as informed decision-making is concerned. The banks, policymakers and teachers can find the research useful as a way of empowering them to formulate good tenets of financial literacy.