The study of factors influencing financial literacy, trust and faith and its relation with risk in the digitalisation as perceived by the clients of microfinance was taken up in the first cent percent literate district of India. The methodology was based on data collected from the clients using a pre-tested structured questionnaire. The data statements used in the study showed sufficient reliability and data was analysed using exploratory and confirmatory factor analysis. The results revealed that financial literacy was mostly influenced by ten aspects that fell under six major components, trust and faith was influenced by eight aspects falling under four components and risk was influenced by six aspects falling under three main components. Risk was directly influenced by financial literacy and trust and faith and indirectly by both acting together. The structural equation model developed revealed very strong goodness of fit. The study not only revealed the major factors influencing the financial literacy, trust and faith and risk in the process of digitalisation but also revealed the directive principles to be reckoned and taken into consideration to avoid the perceived risk of clients to the minimum.