Financial Literacy, Digital Literacy, and Financial Well-Being in the FinTech Era: The Mediating Roles of Behavioural Intention and Financial Self-Efficacy

Abstract

The rapid development of financial technology (FinTech) has transformed how people manage their money, making digital and financial skills crucial for achieving financial well-being (FW). With behavioral intention and financial self-efficacy acting as sequential mediators, this study investigated the impact of financial and digital literacy on the attainment of financial well-being (FWB). A total of 325 respondents provided primary data via a structured questionnaire as part of a quantitative research design. PLS-SEM was used to test the proposed model. All constructs in the model satisfied the requirements for Cronbach’s Alpha, Average Variance Extracted (AVE), Composite Reliability, discriminant validity, and multicollinearity. The results showed that behavioral intention is significantly and positively influenced by both financial and digital literacy. Behavioral intention was found to have a significant positive impact on financial self-efficacy, which was the best indicator of achieving financial well-being. The results show that by boosting people’s confidence in managing their finances and their intention to use digital financial services, financial and digital knowledge indirectly supports the achievement of financial goals. By incorporating behavioral intention, financial self-efficacy, digital and financial literacy into a comprehensive framework for understanding financial well-being in the FinTech era, this study contributes to the growing body of research on financial behavior. The findings have practical implications for legislators, educators, financial institutions, and FinTech service providers to create financial education and digital capability programs that encourage responsible FinTech adoption and improve people’s financial outcomes. The study considered only a few variables influencing financial well-being; it provides scope for further study by incorporating other variables and a different population.