IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v10y2026i3p4174-4191.html

Digital Finance for Sustainable Living: The Role of Digital Financial Literacy and FinTech with Mediation of Financial Behaviour among Malaysian Working Adults

Author

Listed:
  • Siti Shazwani Ahmad Suhaimi

    (Faculty of Human Ecology, Universiti Putra Malaysia, 43400, UPM Serdang, Selangor)

  • Mohamad Fazli Sabri

    (Faculty of Human Ecology, Universiti Putra Malaysia, 43400, UPM Serdang, Selangor)

  • Syuhaily Othman

    (Faculty of Human Ecology, Universiti Putra Malaysia, 43400, UPM Serdang, Selangor)

  • Nur Shuhamin Nazuri

    (School of Economics, Finance and Banking (SEFB), Universiti Utara Malaysia, 06010, Sintok, Kedah)

Abstract

The rapid digitalisation of financial services has transformed how individuals manage their personal finances, particularly in emerging economies such as Malaysia. While financial technology (FinTech) and digital financial services have expanded access to financial products, their implications for long-term financial sustainability remain insufficiently understood. This study investigates the role of digital financial literacy and FinTech usage in shaping financial behaviour and financial sustainability among Malaysian working adults. A quantitative research design was employed using a structured survey administered to working adults aged 30–65 across five Malaysian states. A multistage probability sampling approach was adopted, resulting in 410 valid responses. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that digital financial literacy and FinTech are significantly associated with financial behaviour. In turn, financial behaviour demonstrates a strong positive effect on financial sustainability. Mediation analysis further indicates that financial behaviour partially mediates the relationships between digital financial literacy and financial sustainability, as well as between FinTech usage and financial sustainability.These results highlight the critical role of financial behaviour as a behavioural mechanism through which digital financial capabilities translate into sustainable financial outcomes. The study contributes to the growing literature on financial capability by integrating digital financial literacy and FinTech within a unified behavioural framework. From a policy perspective, the findings underscore the importance of strengthening digital financial literacy and promoting responsible financial behaviour to enhance household financial resilience. Such initiatives are particularly relevant for Malaysia as it advances towards a digitally inclusive financial ecosystem.

Suggested Citation

  • Siti Shazwani Ahmad Suhaimi & Mohamad Fazli Sabri & Syuhaily Othman & Nur Shuhamin Nazuri, 2026. "Digital Finance for Sustainable Living: The Role of Digital Financial Literacy and FinTech with Mediation of Financial Behaviour among Malaysian Working Adults," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 4174-4191, March.
    • Handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:4174-4191
    as

    Download full text from publisher

    File URL: https://rsisinternational.org/journals/ijriss/uploads/vol10-iss3-pg4174-4191-202604_pdf.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/view/digital-finance-for-sustainable-living-the-role-of-digital-financial-literacy-and-fintech-with-mediation-of-financial-behaviour-among-malaysian-working-adults/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Asli Demirguc-Kunt & Dorothe Singer & Leora Klapper & Saniya Ansar & Dorothe Singer, 2022. "The Global Findex Database 2021," World Bank Publications - Books, The World Bank Group, number 37578, April.
    2. Jon Frost & Leonardo Gambacorta & Yi Huang & Hyun Song Shin & Pablo Zbinden, 2019. "BigTech and the changing structure of financial intermediation," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 761-799.
    3. M. M. Naeser Seldal & Ellen K. Nyhus, 2022. "Financial Vulnerability, Financial Literacy, and the Use of Digital Payment Technologies," Journal of Consumer Policy, Springer, vol. 45(2), pages 281-306, June.
    4. Rinaldi, Laura & Sanchis-Arellano, Alicia, 2006. "Household debt sustainability: what explains household non-performing loans? An empirical analysis," Working Paper Series 570, European Central Bank.
    5. Guy Debelle, 2004. "Macroeconomic implications of rising household debt," BIS Working Papers 153, Bank for International Settlements.
    6. Farrell, Lisa & Fry, Tim R.L. & Risse, Leonora, 2016. "The significance of financial self-efficacy in explaining women’s personal finance behaviour," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 85-99.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gric, Zuzana & Ehrenbergerova, Dominika & Hodula, Martin, 2022. "The power of sentiment: Irrational beliefs of households and consumer loan dynamics," Journal of Financial Stability, Elsevier, vol. 59(C).
    2. Jorge Padilla, 2020. "Big Tech “banks”, financial stability and regulation," Revista de Estabilidad Financiera, Banco de España, issue Spring.
    3. Alessandra Canepa & Fawaz Khaled, 2018. "Housing, Housing Finance and Credit Risk," IJFS, MDPI, vol. 6(2), pages 1-23, May.
    4. Hong, Claire Yurong & Lu, Xiaomeng & Pan, Jun, 2021. "FinTech adoption and household risk-taking," BOFIT Discussion Papers 14/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    5. Rishabh, Kumar & Schäublin, Jorma, 2021. "Payment Fintechs and Debt Enforcement," Working papers 2021/02, Faculty of Business and Economics - University of Basel.
    6. MEMDANI Laila, 2017. "Macroeconomic And Bank Specific Determinants Of Non-Performing Loans (Npls) In The Indian Banking Sector," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(2), pages 125-135, August.
    7. Benyan Tan & Yingzhu Guo & Yan Wu, 2024. "The influence and mechanism of female-headed households on household debt risk: empirical evidence from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    8. Tang, Yunfeng & Zhang, Xuan & Lu, Shibao & Taghizadeh-Hesary, Farhad, 2023. "Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences," Resources Policy, Elsevier, vol. 86(PA).
    9. Paulo Cox & Eric Parrado & Jaime Ruiz-Tangle V, 2007. "The distribution of assets, debt and income among Chilean households," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 2, volume 26, pages 172-201, Bank for International Settlements.
    10. Kristina Kocisova & Martina Pastyriková, 2020. "Determinants of non-performing loans in European Union countries," Proceedings of Economics and Finance Conferences 10913085, International Institute of Social and Economic Sciences.
    11. Khan, Habib Hussain & Qureshi, Fiza & Jamali, Dima, 2025. "Digital disruption in financing: Are fintech and bigtech credit reshaping corporate access to capital?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 103(C).
    12. Lu Fan, 2021. "A Conceptual Framework of Financial Advice-Seeking and Short- and Long-Term Financial Behaviors: An Age Comparison," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 90-112, March.
    13. Raphael Auer, 2019. "Embedded supervision: how to build regulation into blockchain finance," BIS Working Papers 811, Bank for International Settlements.
    14. Wang, Qiqi & He, Yunxin, 2025. "Platform-based fintech and bank loan maturity structure: Evidence from Chinese commercial banks," Finance Research Letters, Elsevier, vol. 86(PE).
    15. Óscar Dejuán & Eladio Febrero & Maria Cristina Marcuzzo (ed.), 2011. "The First Great Recession of the 21st Century," Books, Edward Elgar Publishing, number 14193.
    16. Ashley Dunstan & Hayden Skilling, 2015. "Commercial property and financial stability," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 78, pages 1-10, March.
    17. Mariona Segú & Benjamin Vignolles, 2016. "Taxing Vacant Apartments: Can fiscal policy reduce vacancy?," Working Papers 2016.02, International Network for Economic Research - INFER.
    18. Rodolfo Signorino, 2011. "Economics in the Mirror of the Financial Crisis," Chapters, in: Steven Kates (ed.), The Global Financial Crisis, chapter 11, Edward Elgar Publishing.
    19. Ivana Herceg & Danijel Nestić, 2012. "A New Cluster-Based Financial Vulnerability Indicator: The Analytical Concept and its Application for Stress Testing in a Post-Socialist Economy," wiiw Balkan Observatory Working Papers 100, The Vienna Institute for International Economic Studies, wiiw.
    20. Raluca Maran, 2023. "Impact of macroprudential policy on economic growth in Indonesia: a growth-at-risk approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 575-613, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:10:y:2026:i:3:p:4174-4191. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.