The Fintech Paradox: Assessing Digital Financial Literacy and Behavioral Outcomes Among Tertiary Students in Ghana - Evidence From Umat Tarkwa

Abstract

The rapid expansion of financial technology (Fintech) has transformed the way individuals’ access and manage financial services, particularly among young adults in emerging economies. In Ghana, mobile-based financial platforms such as mobile money have become widely used among tertiary students for receiving funds, making payments, and conducting daily financial transactions. While this transformation has improved financial inclusion and convenience, concerns remain about whether students possess the necessary digital financial literacy to manage these tools responsibly. The objective of this study is to examine the relationship between Fintech adoption, digital financial literacy, and financial behaviour among students of the University of Mines and Technology (UMaT), Ghana.
The study adopted a descriptive and correlational cross-sectional research design. Data were collected through a structured digital questionnaire administered to 440 students selected using a stratified random sampling technique. The collected data were analysed using the Statistical Package for the Social Sciences (SPSS). Descriptive statistics were used to summarize fintech usage patterns and financial behaviour, while Pearson correlation and multiple linear regression were applied to examine the relationships among fintech adoption, digital financial literacy, impulse spending behaviour, and financial distress.
The findings reveal a very high level of fintech adoption, with 91.8% of respondents reporting active use of mobile money as their primary digital financial tool. However, digital financial literacy among students was found to be moderate, particularly regarding transaction cost awareness, digital security practices, and the use of budgeting or savings-control mechanisms. The results further indicate that 41.4% of students reported that the ease of digital payments encourages spending beyond their planned budget, while 50.7% experienced end-of-month financial shortfalls. Regression analysis shows that impulse spending linked to the convenience of digital payments significantly predicts financial distress among students.
The study concludes that fintech adoption among students has progressed faster than the development of financial competence, creating behavioural risks associated with digital convenience. The findings suggest the need for universities to integrate structured digital financial literacy education into student support programmes and for fintech providers to incorporate behavioural tools that promote responsible financial decision-making among young users.