Socio-economic and Demographic Factors Influencing Financial Literacy among Online Banking Customers

Abstract

Online banking has transformed financial transactions, making financial literacy essential for managing digital finances and risks. Socio-economic and demographic factors significantly influence financial literacy and online banking adoption, though prior research shows mixed results, highlighting the need for further study. This study examines the socio-economic and demographic factors influencing financial literacy among online banking customers in Sri Lanka, focusing on the Balangoda Divisional Secretariat Division. Using a quantitative research approach, data from 382 respondents was analyzed through multiple linear regression. The findings indicate that education level, profession, monthly income, and living area significantly impact financial literacy, while age has a negative effect. However, gender, civil status, and length of service were found to be insignificant. These results emphasize the need for targeted financial education programs to enhance digital financial inclusion. Policymakers and financial institutions should address regional disparities and integrate financial literacy into education and professional training. Strengthening financial literacy will improve financial decision-making, reduce digital transaction risks, and promote economic stability. This study provides valuable insights into developing effective strategies to enhance financial literacy in Sri Lanka’s digital banking sector.