Digital financial literacy and savings behavior: A comprehensive cross-country analysis of FinTech adoption patterns and economic outcomes across 12 nations

Abstract

This study explores how financial technology (FinTech) and the level of financial literacy come together to shape savings behavior across 12 countries, spanning advanced, fast-developing, and emerging economies. Based on a large-scale survey of over 30,000 individuals, we employed a multi-level analytical approach that accounts for differences between individuals and across regions and national contexts. The findings revealed a consistent pattern: individuals who actively use FinTech tools tend to save more, particularly when supported by robust financial literacy. In fact, financial literacy played a crucial role in unlocking the full potential of digital tools, acting as a threshold condition that enhances their impact. Although urban areas generally showed higher savings rates, we found that FinTech adoption had an even stronger effect in rural areas—provided there was reliable digital infrastructure to support it. At the national level, factors like income levels, regulatory environments, and cultural traits influenced how effectively FinTech fosters better financial habits. These findings suggest that policies promoting financial education, strengthening digital infrastructure, and tailor regulations to local contexts can significantly improve savings behavior. Tailoring these efforts to a country's development stage and cultural context is key to maximizing their impact. © 2025 Elsevier B.V., All rights reserved.