The Impact of Financial Literacy and Security Awareness on Digital Banking Adoption among Young Adults

The rapid digitalization of the banking sector has transformed how individuals manage their finances; however, limited financial literacy and security concerns remain significant barriers to widespread and confident adoption. This study investigates the relationship between financial capability, security awareness, and the usage patterns of digital banking services, specifically focusing on a demographic of young adults. Data was collected through a structured survey assessing users' technical proficiency, their understanding of financial terminology, and their perception of fraud risks. The findings reveal that while basic adoption is prevalent, a significant portion of users experience hesitancy due to complex interfaces and a fear of security breaches, often leading to a dependence on others for completing transactions. Crucially, the study identifies a strong positive correlation between financial education and user confidence. Respondents demonstrated a high willingness to increase their usage if provided with simplified app interfaces, local language support, and targeted literacy workshops. The research concludes that to enhance digital financial inclusion, institutions must move beyond technical infrastructure and prioritize user-centric education and intuitive design to build trust and competence.