Financial literacy, financial behavior and financial resilience: the mediating role of digital financial services

The rapid advancement of digital financial services has reshaped the global financial ecosystem, offering enhanced accessibility and efficiency while also requiring users to possess a certain level of financial and digital literacy. This study aims to examine the impact of digital financial services on financial literacy in the city of Banjarmasin, South Kalimantan, Indonesia. Employing a quantitative research design, data were collected from 100 users of mobile and internet banking services at Bank Kalsel through structured questionnaires. Analysis was conducted using descriptive and simple linear regression methods. The findings reveal a strong positive relationship between digital financial services and financial literacy, with an elasticity coefficient of 8.172 and a correlation coefficient (R) of 0.662. The coefficient of determination (R² = 0.438) indicates that 43.8% of the variation in financial literacy is explained by digital financial services. These results underscore the importance of digital financial inclusion, technology adoption, and service quality in enhancing users' financial knowledge, skills, and behavior. The study recommends integrated efforts from the government, financial institutions, and digital service providers to develop inclusive, user-friendly, and secure digital platforms, supported by targeted financial education programs to promote financial empowerment and reduce socio-economic disparities in South Kalimantan.

This study examines the importance of digital financial literacy among college students, particularly in the wake of the COVID-19 pandemic, which has intensified financial challenges. As digital services become increasingly prevalent, understanding college students' awareness and knowledge of digital financial services is crucial for improving financial literacy in the digital age. A sample of 200 college students was selected through convenient sampling. Data were collected and analyzed using SPSS software to assess their knowledge of and engagement with digital financial services. The research aims to explore the extent of students' digital financial knowledge and their need for digital financial services. The study identifies current levels of awareness among college students regarding digital financial literacy, highlighting knowledge gaps and areas where improvement is needed. By examining these gaps, the research aims to provide actionable insights for enhancing financial education among students in the digital era. The findings will inform strategies for improving digital financial literacy programs, ensuring that students are better equipped to navigate and utilize digital financial platforms. These insights can help educational institutions and policymakers develop more effective financial education initiatives. This study uniquely focuses on digital financial literacy among college students, an area of increasing importance in today’s digital age. It offers new insights into students' awareness and knowledge gaps, contributing to the broader understanding of financial literacy in a digital context.

Background: Financial management in the digital era has shifted significantly due to the rapid adoption of digital financial services and technologies. Specific background: Despite increased financial inclusion in Indonesia, financial literacy remains low, leading to inconsistent financial behavior across demographic groups. Knowledge gap: Previous studies have rarely examined the comprehensive moderating role of financial technology in the relationship among financial literacy, lifestyle, financial inclusion, and financial behavior within the general public. Aims: This study aims to analyze the relationship between financial literacy, lifestyle, and financial inclusion with financial behavior, and to examine how financial technology moderates these relationships. Results: Using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with 96 respondents, results indicate that financial literacy, financial technology, and lifestyle significantly shape financial behavior, while financial inclusion does not. Financial technology strengthens the relationship between financial literacy and financial inclusion with financial behavior but not with lifestyle. Novelty: The study identifies the dual moderating role of financial technology in linking literacy and inclusion to responsible financial practices. Implications: These findings emphasize the need for integrated financial education and digital literacy programs to promote smarter and more sustainable financial management in the digital economy. Highlights Financial literacy and technology jointly shape responsible financial behavior Financial inclusion alone does not ensure improved financial management Financial technology strengthens the link between knowledge and financial discipline Keywords Financial Literacy, Financial Technology, Lifestyle, Financial Inclusion, Financial Behavior

MSMEs in Gedeg District are facing a decline in the number of MSMEs and financial vulnerability, which requires analysis of external factors, namely Regulation, Financial Inclusion, and Financial Technology, as well as internal factors, namely Financial Behavior and Financial Risk, which shape Financial Resilience. This study aims to examine the influence of these three external factors on MSMEs' financial behavior, risk, and resilience, and analyze the mediating role of financial behavior and risk, as well as the moderation of Good Financial Governance (GFG). Using a quantitative approach with primary data obtained from 310 MSMEs through a purposive sampling survey and analyzed using PLS-SEM. The results show that regulation, inclusion, and fintech have a significant effect on financial behavior and risk, which then mediate their influence on financial resilience. However, the direct effect of Regulation and Financial Inclusion on resilience is statistically insignificant. Good Financial Governance (GFG) as a moderator shows insignificant results, implying that governance practices alone may not strengthen resilience without risk management mechanisms and financial behavior. These findings underscore the importance of synergy between financial access, effective regulation, financial literacy, and transparent governance in enhancing the resilience of MSMEs.

Financial inclusion is essential for economic development, providing individuals and firms access to fundamental services such as savings accounts, credit, and insurance. Despite its relevance, according to the Word Bank data, nearly 1.5 billion adults worldwide still lack access to a formal bank account and almost 2 billion do not have access to credit, with the majority in developing countries. This lack of access limits their economic opportunities and perpetuates inequality. Promoting financial inclusion is crucial for driving sustainable economic growth, improving equal opportunities, and strengthening a country's financial resilience in these turbulent times. Financial and technological literacy play a fundamental role in advancing inclusion. Equipping individuals with these skills enables them to make well-informed financial decisions and effectively utilize digital financial services. This research provides quantitative evidence, through panel data analysis, of the importance of technological and financial literacy in determining financial inclusion, alongside education. It also reveals that, on the supply side, a robust infrastructure for digital financial services—particularly through mobile phones—is a prerequisite for formal savings and credit. Additionally, mitigating the impact of asymmetric information, a characteristic of the financial sector, through credit bureaus is crucial. On the demand side, both digital and financial competencies and employment resilience positively correlate with financial inclusion. The institutional attributes of a country are also fundamental.

One of the economic sectors that has attracted the most attention is the manufacturing sector, especially Micro, Small and Medium Enterprises (MSMEs). MSMEs are able to survive the existing financial crises. In addition, MSMEs also make a very large contribution to the Indonesian economy. This article aims to determine the effect of Financial Literacy and Financial Behavior on Financial Resilience in MSMEs in Surabaya, especially in the Ngagel Village. The objects that become variables in this study are Financial Literacy, Financial Behavior, and Financial Resilience. The subjects in this study were MSME actors. This article is a quantitative descriptive using primary data in the form of a questionnaire distributed to MSME actors. The results of this article can be concluded that financial literacy and financial behavior have a positive effect on Financial Resilience in MSMEs to improve behavior in managing business finances well for financial well-being.

Savings and Credit Co-operative Societies (Saccos) in Kenya have realised a tremendous growth in the subsector and are investing huge amount of their scarce financial resources in digital technology to enhance services delivery and offer a wide variety of products and services range, increased membership mobilisation and size, ensure better structure and effective financial performance. Digital financial Services as used in the Saccos industry is as a result of Information Communication Technology revolution commonly referred to as digital commerce. Many Saccos are steadily changing from manual banking system of operations to providing digital Financial (e-banking) services that include internet banking, M-banking and Automated Teller machine support. The adoption of digital financial Services by the Saccos is a strategic attempt to deal with increased cut throat competition from traditional banking institutions and non-banking financial institutions, to cut costs and add value to their services in order to optimise benefits to the shareholders. Despite the fact that Saccos have rapidly adopted digital financial services to provide services, and that they drive a huge section of the financial sector savings of the economy, they have experienced various challenges such as uncertainty and risk due to digital financial services. The study sought to establish the influence of digital financial services on the financial performance of SACCOs in Kakamega County, Kenya. The specific objectives was to determine the effect of the mobile banking, internet banking, use of credit cards and digital funds transfer on the financial performance of SACCOs in Kakamega County, Kenya. The research was guided by three theories of innovation and technology: Diffusion of Innovation Theory, The Theory of Task-Technology Fit Theory and the Technological context, Organisational context and Environmental context Theory.The study used a descriptive research design. The population of study were staff at the three SACCOs operating in Kakamega County. This consisted of 162 respondents who are the staff of the SACCOs. A sample of 49 respondents was taken which forms 30% of the target population which shall be evenly spread across the three SACCOs. The primary data was collected by use of self-administered semi-structured questionnaire.Collected data was analysed through descriptive and inferential statistics by the use of SPSS. Findings were presented by use of tables, frequencies, percentages, means and standard deviation.The study found that the financial performance of the SACCOs was significantly influenced by the digital financial services instituted by the SACCO managements. They demonstrated to have reliable mobile banking system where most of their customers had enrolled on the mobile banking platform and most of customer queries and updates were sorted via the mobile platform.Given the limitations and findings of this study, the researcher recommends that since there exists a positive relationship between digital financial services and bank performance and that e-banking has brought services closer to bank customer’s hence improving banking industry performance, SACCOs must also enhance the dynamics of the sector and embrace digital banking fully and extensively. Mobile banking faces various challenges among them being, system delays by the mobile money transfer service providers, slow processing of transactions, high transactions costs, limit on the amount of money that can be withdrawn in a day and fraud.

PurposeThe first objective of this study is to analyze whether financial behavior (FB), financial stress (FS), financial literacy (FINLIT) and the locus of control (LOC) influence subjective financial well-being (SFWB) among low-income households in Malaysia. The second objective is to investigate whether the use of digital financial services (DFS) moderates the influence of FB and FS, on SFWB.Design/methodology/approachMotivated by the literature on transformative service research (TRS), this study examines how the use of DFS impact SFWB among low-income households in Malaysia. Low-income households are chosen as they are more likely to be financially excluded and lack financial knowledge and skills. Using an interviewer-administered survey, trained enumerators collected data from 1,948 low-income households in Malaysia, selected using a two-stage sampling based on the National Household Sampling Frame obtained from the Department of Statistics Malaysia.FindingsResults reveal that SFWB is positively influenced by FB and the LOC, and is negatively impacted by FS and FINLIT. The evidence shows that the use of DFS counterintuitively weakened the strength of the relationship between FB and SFWB, but effectively reduced the adverse effect of FS on SFWB.Practical implicationsTo reverse the signs of relationship, financial services marketers need to identify the specific types of DFS that low-income households use in order to provide targeted marketing efforts and financial education to promote the use of DFS on a more holistic basis to increase financial well-being.Originality/valueThe findings of this study add to the body of knowledge deliberating on the opposing effects of technology on consumers' welfare and well-being. This study focuses on the lower-income stratum of Malaysian households as this group of the population is more likely to be financially excluded and have deficiencies in financial knowledge and skills. Findings of this study show that DFS use can actually diminish the positive impact of FB on SFWB while reducing the adverse effect of FS on SFWB.

This study explores the moderating effect of digital literacy on the relationship between digital financial services and financial behaviour in the context of manufacturing MSMEs. It highlights the transformative impact of digital financial services, including expanded access to formal financial services, financial inclusion, simplified payment processes, and improved credit accessibility for MSMEs. The study emphasizes the importance of digital literacy in effectively utilizing digital technologies and accessing digital financial services, which in turn influences financial behaviour, specifically in terms of savings, financing, and investment decisions. Drawing on the Technology Acceptance Model and Perceived Behavioural Control (PBC) theories, the research investigates the complex interplay among digital financial services, PBC, and financial behaviour among manufacturing MSME owners. The findings provide valuable insights for policymakers and financial institutions to enhance digital financial services and promote financial activities among MSMEs. Overall, this study underscores the significance of digital literacy and its role in empowering MSMEs and facilitating their financial growth in the digital era.

Financial literacy and financial inclusion are critical components of economic empowerment, particularly among the millennial generation, who are actively engaged with digital financial services. This study employs a bibliometric analysis using data exclusively from Scopus and analyzed with VOSviewer to map the intellectual structure, trends, and key research themes in financial literacy and inclusion. The findings reveal that financial literacy is a dominant theme, with strong interconnections to financial behavior, financial knowledge, investment decision-making, and digital finance. The role of social media and fintech innovations is increasingly shaping millennials' financial engagement, highlighting the need for digital financial literacy. Co-authorship analysis identifies three primary research clusters: (1) financial literacy and personal finance, (2) behavioral and methodological frameworks, and (3) technology acceptance in financial behavior. The study underscores the interdisciplinary nature of financial literacy research, incorporating insights from economics, behavioral psychology, and technology adoption models. Implications suggest the need for updated financial education programs integrating investment literacy and digital finance competencies. Future research should explore regional financial inclusion disparities, the role of digital platforms in financial education, and emerging fintech trends influencing millennials' financial behavior.

The world of finance has long been shrouded in complexity, creating an impediment for the economically vulnerable and less powerful populations in developing and emerging economies who lack the resources or knowledge to access it. However, with the evolving digital landscape coupled with digital financial innovation, these barriers are beginning to crumble. From digital banking apps to mobile money platforms, digitization is revolutionizing access to financial services like never before. Digital financial services (DFS) have emerged as a critical enabler of financial inclusion, bridging the longstanding gaps in access, usage, and affordability of financial services that previously existed in traditional brick-and-mortar financial systems. In Liberia, where access to financial services is limited or unavailable for the population residing in rural and semi-urban areas of the country, digital financial services provide a vital lifeline for financial inclusion. Through a descriptive correlation quantitative research design, this study examines the impact of digital financial services adoption on financial inclusion in Liberia from 2011 to 2024. Using secondary cross-sectional data collected from the central bank of Liberia's annual reports (2016-2024) and the World Bank's Findex global database (2011-2024), the study results show a direct positive correlation between digital financial services and financial inclusion in Liberia, characterized by a shift towards digital financial services and an increase in banked individuals. The research findings also highlight that the adoption rate of digital financial services has increased considerably, thereby expanding financial inclusion in Liberia from 18.18% in 2011 to 52.21% in 2024. Notwithstanding, despite the DFS's potential to enhance financial inclusion in Liberia, the study identified several challenges and limitations hindering the widespread adoption of digital financial services in Liberia. These include inadequate digital public infrastructure (DPI), limited financial and digital literacy, security and privacy concerns, and regulatory and policy issues. Thus, the paper recommends that the Government of Liberia should augment Liberia's digital public infrastructure (DPI), strengthen the digital regulatory framework, enhance financial and digital literacy programs, and promote stakeholders' collaboration for more comprehensive financial inclusion through digital financial services in Liberia.

The crisis caused by the COVID‑19 pandemic has clearly demonstrated the importance of financial resilience for households. It is necessary as a measure of preparedness for the economic shocks that may arise, especially in connection with the recession problem, which has been increasingly discussed recently. Financial resilience can be formed through resilience-building financial behaviors, including saving behavior. This study investigates the predictors that shape household saving behavior in a digital context by adopting the Theory of Planned Behavior (TPB), i.e., how human behavior is guided. This model also adds digital financial literacy (DFL) as an extension of the TPB. The digital context is taken because of the oblique shift in financial behavior with the rise of Digital Financial Services (DFS) in society. This study used a survey method with a well-structured questionnaire. The reflective measurement was performed using the Partial Least Square Structural Equation Model (PLS-SEM). Analysis was conducted on respondents in Java, Indonesia, to the survey’s screened data (N = 900). The study results show that all predictors influencing household decisions to save include all predictors of TPB and DFL. In the mediating effect, the intention toward saving behavior act as a partial mediating variable on the relationship between exogenous and endogenous variables. This study suggests policymakers, government, and educational institutions provide DFL to households.

Micro, small, and medium-sized enterprises (MSMEs) are among the cornerstones of the Indonesian economy that managed to survive the world crisis. The development of MSMEs also demands that owners be ready to compete with other MSMEs. This study aims to analyze whether business sustainability is influenced by financial literacy with financial behavior and financial technology as mediators. The research sample includes owners and managers of MSMEs in Indonesia, totaling 342 respondents. Data collection methods used are non-probability sampling techniques by distributing questionnaires. This study uses SEM analysis with PLS analysis tools. It was found that financial literacy does not directly affect business sustainability but affects financial behavior and financial technology. Financial behavior and financial technology are proven to influence business sustainability. Furthermore, financial behavior and financial technology mediate the effect of financial literacy on business sustainability. The results of this study show that financial behavior and financial technology can fully mediate the relationship between financial literacy and business sustainability. Moreover, financial literacy cannot directly affect business sustainability, which must be fully mediated by financial behavior and financial technology. This study also provides practical value regarding the sustainability of MSMEs. Thus, companies can survive in the long term not only with a robust financial literacy foundation but they must be supported by good financial behavior and also be able to choose the right financial technology in their business activities.

Digital financial services have become essential in strengthening the financial operations of Micro, Small, and Medium Enterprises (MSMEs), particularly as businesses adapt to an increasingly digital economic environment. While digital tools are widely recognized for enhancing business processes, limited research has focused on how digital financial services and digital literacy influence the financial behavior of MSMEs. This study examined the relationship between Digital Financial Services (DFS), digital literacy, and financial behavior among MSMEs in the food sector of Calapan City. A descriptive-correlational research design was used, and data were collected from 170 MSMEs using a researcher-developed questionnaire assessing DFS usage, digital literacy, and financial behavior across saving, financing, investing, and spending. The results further showed that digital literacy strengthens the effectiveness of DFS by enabling MSMEs to apply digital tools more confidently and strategically. The study highlights specific behavior areas with lower adoption, such as separating digital savings, using digital loan platforms, monitoring investments digitally, and maximizing digital payment systems. These gaps reflect the need for targeted interventions that improve MSMEs’ competencies in leveraging financial technologies. The findings emphasize the importance of DFS and digital literacy as key drivers of improved financial decision-making, stronger financial management, and greater business resilience within the MSME sector.

PurposeFinancial inclusion plays an essential role in today’s modern era. There has been a growing recognition that financial inclusion is an important enabler in poverty reduction. It is an essential tool in enabling inclusive growth and reducing poverty. This study aims to identify the barriers that limit customers to use digital financial services (DFS) in Pakistan. Second, this study aims to spread awareness of DFS and benefits of digital financial inclusion and services to retain customers in Pakistan. Third, the study purposes to retain old customers toward DFS in Pakistan.Design/methodology/approachThis study is qualitative phenomenology study. The data were collected through interviews (i.e., online or face-to-face, depending on participants convenience). The sample comprised respondents with different age and different nature of work. Before conducting actual interviews, the interview questions were validated by three experts working in the State Bank of Pakistan in the relevant field. The interviews took from those individuals who were have digital financial account, but not using it due to some reasons. Data analysis carried out by using the NVivo software to deliver the themes after analyzing the data by querying, visualizing and coding.FindingsThe study categorized s6 themes as second order themes including dependency, illiteracy, lack of trust, cost, lack of access to financial services and financial instability by emerging 16 subject themes as 1st order themes. It including financial illiteracy, digital illiteracy, lack of knowledge, depend on spouse, depend on parents/children, depend on siblings, fear, security issues, privacy issues, lack of internet access, lack of account access, unemployment, low income, high expenses, other cost and transaction cost. These barriers limit DFS adoption and its use. This study found that 90% respondents were financial illiterate and 80% respondents do not have the knowledge of new recent e-payment system.Originality/valueHowever, this study contributes to reducing these barriers and spreading knowledge about financial inclusion and DFS. From a managerial perspective, additional attention needs to be devoted to the adoption of financial inclusion and innovation in DFS.