The Impact of Financial Literacy on E-Banking Usage among University Undergraduates

Abstract

Financial literacy is essential today since it helps them achieve financial stability by developing healthy spending habits and making suitable investments for future needs. Accordingly, many studies have been conducted to determine the financial literacy on e-banking usage among bank customers in global context. The undergraduates are developing financial habits and making decisions affecting their long-term financial well-being. Therefore, this study aims to investigate the impact of financial literacy on e-banking usage by management undergraduates in state universities in Sri Lanka. The study identified four variables, financial knowledge, financial behaviour, financial attitude, saving, as the proxy for financial literacy. The study employed a quantiReceived: 26/08/2024 tative approach with probability sampling drawing a sample of 345 manageRevised: 26/10/2024 Accepted: 02/11/2024 ment undergraduates in the state universities and collecting the data using Published: 02/12/2024 structured questionnaires among the management undergraduates in Sri Lanka. The data was analyzed using descriptive statistics, correlation, and regression analyses. The study finds that financial knowledge, behaviour, and attitude significantly impact the e-banking usage. However, the study also finds no impact of saving variable in the e-banking usage. The study also highlights implications for educational policy, advising partnerships between financial institutions and universities to introduce hands on programs that strengthen students' practical use of financial literacy.