THE IMPACT OF DIGITAL BANKING SERVICES ON THE POPULATION'S FINANCIAL LITERACY

Abstract

This article examines the impact of digital banking services on the financial literacy of the population. As mobile banking applications, digital payment systems, and online lending platforms become the dominant channel through which individuals interact with the financial system, the relationship between digital banking adoption and financial knowledge, skills, and behavior has gained particular relevance. Based on a comparative analysis of international experience and existing theoretical frameworks, the article identifies the mechanisms through which digital banking services can both strengthen and undermine financial literacy, depending on the design of digital tools and the baseline literacy level of users. The findings indicate that digital banking services generate the strongest positive effect on financial literacy when technological accessibility is deliberately combined with embedded financial education, transparent information disclosure, and consumer protection safeguards. Based on these findings, the article develops practical recommendations for banks, regulators, and policymakers aimed at maximizing the financial-literacy-enhancing potential of digital banking while mitigating associated risks.