Perception, Financial Literacy, and Fintech Adoption toward Millennial Investment Decisions in the Digital Era

Abstract

This study aims to analyze the relationship between financial literacy, risk perception, and the adoption of digital financial technology on millennial investment decisions in the digital era. The research employs a Systematic Literature Review method by synthesizing several peer-reviewed articles published over the past five years. The results indicate that financial literacy positively influences the quality and rationality of investment decisions, helping individuals assess risks, manage portfolios, and avoid impulsive behavior. Risk perception and behavioral biases, such as overconfidence and herding, act as psychological mediators that shape how investors interpret financial information and make decisions under uncertainty. Furthermore, fintech adoption strengthens the connection between literacy and investment behavior through better accessibility, real-time transparency, and lower transaction costs. However, using fintech without adequate financial understanding may increase speculative tendencies. This study emphasizes the importance of integrating financial literacy with digital competence in financial education programs for millennials to promote rational, inclusive, and sustainable investment practices.