Digital Financial Literacy: A Holistic Approach

Digital financial services have a significant impact on the demands placed on consumers. They are therefore central to the conceptualisation of financial literacy. More specifically, their consideration is an essential prerequisite for effective policy and practice, including the design of timely educational assessments and training interventions. However, despite the fact that there is a broad consensus in this regard, the integration of aspects arising from the digitalisation of financial services into existing conceptions of financial literacy is still pending.

This research project aims to close this gap. It is based on a competence-oriented view of financial literacy with a special focus on holistic financial decision-making. The project seeks answers to the following questions (1) Which opportunities and risks are associated with digital financial services for consumers and which decision-making behaviours are favourable in order to adequately use the opportunities and avoid the risks in the best possible way? (2) What knowledge, skills and attitudes are required to implement these behaviours effectively? (3) Which financial decisions and corresponding knowledge, skills and attitudes are of particular priority for specific target groups?

The main objective of the project is to identify key aspects of digital financial literacy that can serve as a basis for designing timely, effective and tailored assessments and training. It also aims to identify research gaps and provide directions for further research in digital financial literacy. To answer the questions and achieve the objectives, a combination of a scoping review and an interview study is planned.

The project is funded by the Think Forward Initiative (TFI).

Project duration: 02/2020 to 05/2021

Project team

  • Prof. Dr. Carmela Aprea
  • Prof. Dr. Tabea Bucher-Koenen

Project-related publications

Aprea, C. & Bucher-Koenen, T. (2021). Mind the app! Financial education and the lights and shadows of financial digitalisation.