AN EMPIRICAL STUDY OF THE INFLUENCE OF FINANCIAL LITERACY AND FINTECH USAGE ON FINANCIAL DECISION-MAKING

The focus of this study is to empirically investigate the link between financial literacy, FinTech use and financial decisions, specifically digital financial self-efficacy. The research design employed in the study was quantitative, cross-sectional survey design and the structured self-administered questionnaire was used. Accessible population was 243 and useful responses were 149 to be analyzed. The questionnaire consisted of 5-point Likert scale and consisted of the following themes: financial literacy, FinTech use, financial self-efficacy with digital finance, financial attitude/financial self-efficacy, mediation-related perceptions, and decision orientation. Descriptive statistics, reliability analysis, Chi-square and One-way ANOVA and linear regression were carried out. Average scores are high on the constructs. The observed financial decision-making indicator was strongly predicted by financial literacy when the variable of FinTech usage was controlled (B=0.394, p<.001) but weaker when it had been controlled (B=0.105, p=0.298). The combined variance of financial literacy and FinTech usage was 77.6% to explain the variance in digital financial self-efficacy. The decision-making indicator was significantly predicted by digital financial self-efficacy in the expanded model (B=0.586, p<.001). Positive indirect path(s) via digital financial self-efficacy were also noted in Bootstrap mediation estimates. The results indicated that financial knowledge and confidence in digital financial services play a significant role in the sound financial decision making.