Bridging the Financial Literacy Gap

User-Centric Model for Digital Financial Services

Abstract

In an era of rapid technological advancement and convenience, still only 33% of adults worldwide are financially literate, underscoring the need for innovative solutions to achieve financial independence. This research aims to bridge the gap by developing the first step of a conceptual model for digital financial services, focusing on digital financial readiness. Integrating the Diffusion of Innovation Theory, the Financial Readiness Framework, and the Technology Readiness Levels (TRL) Framework, the research proposes an approach that aligns technological development with users’ financial readiness. This research employs an inductive qualitative method, analysing data from semi-structured interviews with Namibian millennials as a target group. Key findings underscore the importance of enhancing digital and financial literacy, improving infrastructure, and employing user-centric designs to meet diverse needs. Participants highlighted the necessity for continuous education, robust infrastructure, and trustworthy, secure systems. The research concludes that digital financial services must be tailored to user needs in order to achieve financial independence. This research thus offers a structured, user-centred model that aligns technological advancements with practical user requirements, contributing to a more inclusive financial ecosystem. By focusing on these areas, actionable insights and a pathway for developing effective digital financial tools can further promote financial independence.