Exploring the Mediating Effect of Financial Knowledge on Technological Innovations and Financial Accessibility

Abstract

This study investigates the role of technological advancements in fostering an inclusive financial system, with financial knowledge serving as a mediating variable. Through an extensive review of contemporary academic literature, the research analyzes core themes, drivers, and the influence of technological innovations on expanding access to financial services. The objective is to explore how technology facilitates financial inclusion by bridging accessibility gaps and how financial knowledge enhances the utilization of these technological advancements. The study employs a quantitative research design, aiming to evaluate the impact of technological advancements on financial knowledge and inclusive financial participation. Data were collected through structured surveys across diverse demographic and geographic groups. The surveys assessed the frequency of financial technology usage, participants’ levels of financial knowledge, and their experiences with inclusive finance. A mixed-method approach was adopted, integrating quantitative surveys with qualitative semi-structured interviews involving key stakeholders. Data were analyzed using statistical techniques, including PLS-SEM modeling, to explore the relationships between technological advancements, financial knowledge, and financial inclusion. Findings identify digitalization, FinTech solutions, and user adoption as significant drivers, with financial knowledge acting as a critical mediator. The results reveal that technological innovations, such as mobile banking and digital payment platforms, significantly reduce the financial service accessibility gap, especially in underserved markets. Financial knowledge amplifies these benefits by enabling users to make informed decisions and effectively utilize financial technologies. This synergy contributes to the broader adoption of inclusive financial services and improved economic participation. These findings have important implications for policymakers, practitioners, and researchers. Policymakers can design targeted interventions and policies to address barriers to financial technology adoption. Practitioners may incorporate these insights into financial education initiatives and service delivery mechanisms to enhance their relevance and effectiveness. This research provides a scientific foundation for developing sustainable economic strategies that prioritize financial inclusion and poverty reduction.

Keywords: Technological Advancements, Financial Knowledge, Inclusive Finance, Financial Inclusion, FinTech, Digital Payments