In 2020, I asked my mother to register for mobile money. After explaining the ease and convenience it offers, especially for remittances, she agreed and registered a mobile money number. Immediately after registration, she called me and happily announced her PIN, explaining that it was given to her by the agent.

Like my mother, many users of digital financial services (DFS) in the informal sector face similar challenges. As DFS becomes increasingly integral to our daily lives, understanding how to use these services safely and effectively has become more important than ever. Traditional financial education has focused on basic money management skills, such as saving and budgeting.

However, the introduction and advocacy for the use of digital financial services necessitate a broader and more nuanced approach to financial literacy, which is Digital Financial Literacy (DFL).

As we roll out digital financial solutions and champion their capacity to drive financial inclusion, stakeholders must ensure infrastructure development is accompanied by investment in literacy programs. We must shift from just financial literacy practices to educational programs that include digital literacy skills.

These programs should emphasize key principles such as awareness of DFS, breaking down their complexities, and ensuring an understanding of the risks
associated with their usage. Digital financial literacy education, according to experts, combines financial literacy, financial capability, and digital literacy.

Financial literacy involves understanding financial concepts and products necessary for managing personal finances.

Financial capability refers to the skills and behaviors needed to make informed decisions.
financial decisions.

Digital literacy is the ability to navigate and use digital content and devices proficiently.

When these three areas intersect, they equip individuals with the knowledge and skills to use digital financial products and services safely and effectively. This means individuals will be in a position to understand how DFS like mobile money, mobile banking, and digital investments work, recognize the associated risks, and know how to protect themselves from potential threats.

Considering the existing gap in literacy rates in most African countries, digital literacy activities will require efforts and commitment from all stakeholders. At their core, digital literacy programs must consider:

Awareness of DFS:Consumers need to be aware of the various digital financial services available, how they function, and their benefits. This is where brand storytelling comes in. foundational knowledge of how DFS solves key needs and helps individuals make informed choices about which services best meet their needs.

Understanding DFS Risks: With the convenience of DFS comes the risk of cyber threats such as phishing, hacking, and data theft. Social engineering fraud is also quite common. Consumers must understand these risks to protect themselves and their finances effectively. This education must be a continuous process, as these risks keep changing rapidly.

Cybersecurity Practices: Knowing how to secure digital transactions is crucial. This involves using strong passwords, enabling multi-factor authentication, and adhering to data privacy standards to safeguard personal and financial information. Payment Service providers must make this education a critical part of the customer's journey.

Redress Mechanisms: Customers should be made aware of their rights and the steps to take if they encounter issues such as transaction failures, fraud or service errors. Understanding how to seek help and resolve problems is a vital aspect of DFL. Without a clear redress mechanism, customers may discontinue usage after a bad experience.

The Communication Environment: Global standards are a good starting point, but for educational purposes, understanding the people, their environment, and using the right message and appropriate channels is essential. Without consideration of these factors in your educational process, you will miss the point.

For DFL to be effectively integrated into the financial ecosystem, both financial service providers and regulators must take proactive steps:

Regulators should incorporate DFL into their regulatory frameworks, ensuring that financial service providers prioritize consumer education and protection.
Digital financial literacy programs should be part of the licensing process. Systems should be put in place to ensure these programs are followed thoroughly.

Financial service providers should develop comprehensive DFL programs that educate consumers on the safe and effective use of DFS. These initiatives should be accessible and tailored to different segments of the population.

Collaboration between regulators, government agencies, financial service providers, NGOs, and other stakeholders can enhance the reach and impact of DFL initiatives. Joint efforts can lead to more extensive and widespread literacy programs.

As we continue to advocate for the use of digital financial services, stakeholders must equally champion and prioritize literacy programs. Digital financial literacy is essential for the safe and widespread adoption of digital financial services. By equipping customers with the necessary knowledge and skills, we can ensure confident and secure usage of DFS. All stakeholders
within the financial services industry have a critical role in making DFL a priority, ultimately enhancing financial inclusion and consumer protection.

Eunice Asantewaa Ankomah is a CIPR-accredited PR & communications professional and a Certified Digital Finance Practitioner. She has, for over 10 years, been at the forefront of developing and deploying communication and PR strategies for Ghana's National Payment Systems Infrastructure Provider. She has developed and implemented literacy programs, stakeholder engagement policies, partnerships, and brand visibility guidelines, among others, for the payment systems industry. Eunice is passionate about leveraging communication to drive social change. particularly the adoption of digital technologies.

She is a co-convener of Global Women in Digital Finance, an advocacy initiative to champion policies that close the gender gap in the usage and adoption of digital financial services.