Digital Financial Knowledge Scale (DFKS): Insights from a Developing Economy

Kelmara Mendes Vieira (), Taiane Keila Matheis, Eliete dos Reis Lehnhart and Fernando Oliveira Tavares
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Kelmara Mendes Vieira: Department of Administrative Sciences, Federal University of Santa Maria, Santa Maria 97105-900, Brazil
Taiane Keila Matheis: Graduate Program in Administration, Federal University of Santa Maria, Santa Maria 97105-900, Brazil
Eliete dos Reis Lehnhart: Department of Administrative Sciences, Federal University of Santa Maria, Santa Maria 97105-900, Brazil
Fernando Oliveira Tavares: REMIT—Research on Economics, Management and Information Technologies, Department of Economics and Management, Universidade Portucalense, 4200-027 Porto, Portugal

IJFS, 2024, vol. 12, issue 4, 1-19

Abstract: This work aims to create and validate the digital financial knowledge scale (DFKS). Three studies were carried out, including a focus group, expert validation, pre-testing, and the application of item response theory. From these procedures, two versions of the scale were constructed and validated. An evaluation and classification methodology was proposed. Two versions for measuring digital financial knowledge are presented. The long version is composed of 40 items and the short version has 26 items. Applying the proposed methodology, it is possible to classify the level of digital financial knowledge as low, intermediate, or high. The DFKS can be useful for both financial system agents and governments and researchers, who can use it in different contexts. In the banking sector, identifying the level of digital financial knowledge can reduce risks, as losses suffered by clients due to an uninformed adoption of digital banking services break the relationship of trust and can lead to lower financial inclusion.

Keywords: digital financial capability; digital financial knowledge; mobile banking; psychometric tests; financial literacy; digital literacy; digital financial services (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2024
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