Study of Rwandan Young Adults Highlights Gaps in Digital Financial Literacy

Africa has the world’s youngest population, and many young adults rely on informal or temporary employment, making digital financial literacy (DFL) critical for long-term financial resilience and sustainable economic development. In a new study published in Sustainability, researchers surveyed Rwandan young adults on their financial knowledge, skills, and behaviors to identify gaps in their DFL. They found modest strengths in some areas and gaps in others, as well as disparities by gender and education.

The study, “Preliminary Insights on Digital Financial Literacy Gaps Among Rwandan Youth and Considerations for AI-Powered Interventions,” was conducted by researchers at Carnegie Mellon University, Carnegie Mellon University Africa, the University of Witwatersrand, and Indiana University. “Digital financial literacy is the ability to understand and use digital financial products and services to make informed decisions,” explains Ganesh Mani, adjunct professor at Carnegie Mellon’s Tepper School of Business, who coauthored the study. “DFL is critical for Africa, where an estimated 80 million people will work in the digital gig economy by 2030.”

The study featured two parts: In the first, researchers surveyed 300 Rwandans aged 18 to 32 to learn about their financial knowledge, digital skills, and financial behaviors. More than 90 percent of adults in Rwanda use at least one formal financial service, and more than 85 percent use mobile money platforms.

Participants had modest financial knowledge of financial concepts and moderately high levels of digital literacy, and they followed common budgeting and saving practices, the study found. But there were key gaps in their adoption of good cybersecurity practices, as well as their use of financial products and services.

The study found disparities in gender and education: Men had more knowledge of financial concepts, were aware of more information sources for financial decision making, and were more savvy in their saving and investing behaviors, highlighting the need for targeted interventions for women. In addition, participants with more education tended to score higher on tests of knowledge of financial concepts and digital literacy.

To address these issues, in the second part of their work, researchers prototyped an artificial intelligence (AI)-enabled mobile money loan literacy chatbot. Although fewer than half of the participants were inclined to be assisted by the chatbot prototype as a result of usability issues that increased the time required to take part, researchers were able to explore users’ interactions with the chatbot, as well as its perceived usability and usefulness. Based on their findings, they identified three suggestions for designers of interventions to boost DFL:

1. Mobile money providers should embed just-in-time literacy nudges directly into digital interfaces to provide context-specific education during transactions.
2. Financial education initiatives should use gender-centric outreach through established community groups to bridge the knowledge gap among rural women.
3. AI-driven financial tools should prioritize minimalist designs based on human-computer interactions to reduce cognitive workload.

“Most young people in Rwanda will need to independently plan for retirement, health coverage, and income volatility while simultaneously managing the risks of receiving payments through digital platforms, which is essential for building sustainable financial futures,” says Pierre Ntakirutimana, a Research Associate at Carnegie Mellon University Africa, who led the study. “By advancing the realization of several United Nations’ Sustainable Development Goals, our work can help bridge existing gaps to foster sustainable communities where digital literacy serves as a driver of economic resilience.”

Among the study’s limitations, the authors note that participants came from urban and peri-urban areas, which may not fully reflect the digital landscape in rural Rwanda. They also suggest that future research include longitudinal data to measure the long-term efficacy of AI-driven financial coaching.

The study was funded by African Engineering and Technology Network (Afretec), which is managed by Carnegie Mellon University Africa and receives financial support from the Mastercard Foundation.

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Summarized from an article in Sustainability, “Preliminary Insights on Digital Financial Literacy Gaps Among Rwandan Youth and Considerations for AI-Powered Interventions,” by Ntakirutimana, P (Carnegie Mellon University Africa), Ndayisaba, YM (Carnegie Mellon University Africa), Mani, G (Carnegie Mellon University), Chipeta, C (University of Witwatersrand), Mcsharry, P (Carnegie Mellon University Africa), Sowon, K (Indiana University), and Luhanga, ET (Carnegie Mellon University Africa). Copyright 2026 The Authors. All rights reserved.