Decision-Making Perspectives on the Risks of Financial Digitalization Among Individual Respondents

Abstract

The rapid digitalisation of household finances has transformed the way individuals manage their financial activities, with online banking, mobile payments, investment platforms, and other digital financial services becoming an integral part of everyday life. While this transformation has increased accessibility and convenience, it has also introduced new challenges and risks related to data protection, cybersecurity, financial fraud, and volatile digital assets. Consequently, traditional financial knowledge related to saving, borrowing, and budgeting is no longer sufficient for effective decision-making in an increasingly digital financial environment. This study examines the relationship between digitalisation and digital financial literacy (DFL) across generations and educational levels, with particular emphasis on the perception of risks associated with financial crises and digital financial activities. The results indicate that digital financial literacy and the perception of crisis-related risks are closely associated with generational and educational factors, suggesting differences in individuals’ ability to recognise and respond to risks in the digital financial environment. The study contributes to understanding the social implications of financial digitalisation and provides insights relevant to the development of strategies aimed at strengthening financial awareness and supporting more informed and effective financial decisions at both individual and household levels. Rather than examining the complete multidimensional construct of DFL, the study focuses specifically on the perception of risks associated with financial digitalisation. In this context, risk perception is considered an important dimension of DFL, reflecting individuals’ awareness of and preparedness for emerging risks in the digital financial environment.