Digital Financial Literacy 4.0: Consumer Readiness for AI-Driven Fintech and Blockchain Ecosystems

Abstract

The advent of Digital Finance 4.0 marks a new era in the global financial ecosystem driven by artificial intelligence (AI), blockchain, and advanced analytics. This transformation requires consumers to possess enhanced levels of Digital Financial Literacy (DFL) a multidimensional skill set that integrates traditional financial knowledge with digital, technological, and cybersecurity competencies. This study examines consumer readiness for AI-driven fintech and blockchain ecosystems across selected urban and semi-urban centers in India. Using a mixed-method approach combining structured surveys (n=400) and sentiment analysis of fintech application reviews, the research quantifies awareness, trust, and adaptability toward emerging digital finance tools. Results indicate moderate literacy but uneven preparedness, with notable gaps in blockchain comprehension, data privacy awareness, and AI trust. Younger consumers and those with higher digital exposure demonstrate greater readiness, while older and low-income groups remain hesitant. The findings underline the urgent need for national-level financial literacy frameworks that align with the realities of AI-powered financial platforms. Policy interventions, fintech design ethics, and consumer education programs must converge to ensure equitable digital inclusion and risk-aware participation in the evolving Fintech 4.0 landscape.