Banking and digital financial literacy: challenges and opportunities for interaction

Abstract

The purpose of the article is to provide a comprehensive analysis of the impact of financial technologies in the context of digital transformation on the effectiveness of remote banking services, consumer financial behavior, and the level of digital financial literacy of the population, as well as to identify key challenges and prospects for enhancing financial inclusion under conditions of wartime and technological risks. Particular emphasis is placed on the interdependence between the efficiency of modern banking and the level of digital financial literacy of citizens, which determines the ability of society to adapt to new financial realities.

The study employs systemic and structural-functional analysis to generalize trends in fintech development, statistical analysis of official data from the Ministry of Digital Transformation of Ukraine, the National Bank of Ukraine, and the OECD, comparative analysis of financial literacy indicators across different socio-demographic groups, as well as logical generalization of the results of national and international educational initiatives.

It has been established that accelerated digitalization of financial services, the development of online banking, neobanks, and contactless payments fundamentally transform the model of interaction between banks and consumers, increasing the accessibility and convenience of financial services. At the same time, the low level of digital skills among the population leads to heightened risks of fraud. The study reveals that a high level of digital financial literacy correlates with effective use of banking products, the formation of savings, and rational financial behavior.

It is argued that the development of financial technologies is not only a technological but also a socio-economic process, the effectiveness of which directly depends on the level of digital financial literacy of the population. Insufficient awareness of citizens regarding financial security, investment risks, and cyber threats creates barriers to effective banking and increases the risk of financial exclusion. Enhancing digital financial literacy is identified as a key prerequisite for ensuring sustainable financial well-being of citizens, building trust in banking institutions, and reducing the level of fraud.