Using FinTech Tools to Improve Financial Literacy: A Systematic Literature Review on Adoption and Challenges

The rapid expansion of Financial Technology (FinTech) has transformed the financial landscape by enhancing accessibility, efficiency, and financial inclusion through digital banking, mobile wallets, and Unified Payments Interface (UPI) platforms. However, the effectiveness of FinTech adoption depends significantly on users’ financial and digital literacy levels. This study presents a Systematic Literature Review (SLR) of 33 scholarly articles published between 2019 and 2025 to examine the relationship between FinTech adoption, financial literacy, digital literacy, and financial inclusion, with particular emphasis on emerging economies such as India. The review identifies three major themes: (i) adoption and utilization of FinTech tools, (ii) the impact of FinTech on financial literacy and financial behavior, and (iii) challenges affecting the effective use of digital financial services. Findings reveal that FinTech tools have significantly improved financial accessibility, reduced transaction costs, and promoted financial inclusion among diverse population groups. Financial literacy emerges as a critical determinant of adoption, influencing users’ confidence, trust, decision-making ability, and responsible financial behavior. Individuals possessing higher levels of financial and digital literacy demonstrate greater readiness to adopt FinTech services and are more likely to engage in saving, investment, and effective financial management practices. The review further highlights that vulnerable groups, including rural households, women entrepreneurs, and low-income consumers, continue to face barriers such as inadequate digital infrastructure, limited awareness, cybersecurity concerns, and socio-economic constraints. These challenges restrict the equitable benefits of digital financial innovations. The findings also indicate that sustainable FinTech adoption requires supportive regulatory frameworks, robust consumer protection mechanisms, digital education initiatives, and trust-building measures. The study concludes that FinTech should be viewed not merely as a technological innovation but as a catalyst for financial empowerment. Integrating financial and digital literacy into FinTech ecosystems is essential for achieving inclusive and sustainable financial development. Future research should explore long-term behavioral outcomes, trust dynamics, and intergenerational patterns of digital financial adoption.