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The Moderating Role of Fintech App Usage in Lower-Income Households in Malaysia: A Financial Well-Being Roadmap

Author

Listed:
  • Sabri Mohamad Fazli

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

  • Suhaimi Siti Shazwani Ahmad

    (Ph.D. Candidate, Faculty of Human Ecology, Universiti Putra Malaysia, 43400 UPM, Serdang, Selangor, Malaysia)

  • Nazuri Nur Shuhamin

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

  • Magli Amirah Shazana

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

  • Burhan Nik Ahmad Suffian

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

  • Amim Othman Mohd.

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

Abstract

In Malaysia, the B40 group represents households with a monthly income below MYR4,850 (USD1,093), constituting the lowest 40% of earners facing economic challenges. Amid rising living costs and employment instability, managing finances becomes crucial. Fintech apps, known for accessibility and convenience, offer various financial services. A cluster sampling strategy was used to identify 1,948 B40 households from across Peninsular and East Malaysia to serve as the study’s sample population. The data was obtained through a cross-sectional study then scrutinised via SEM-PLS. This study aims to determine factors such as locus of control, financial knowledge, and financial behaviour concerning the usage of fintech apps that impact the financial well-being of Malaysian B40 households. The study findings indicate a significant positive correlation between an individual’s Financial Knowledge and Locus of Control toward Malaysia B40 Financial Well-Being. The study suggests that Financial Behaviour partially mediates the relationship between Financial Knowledge, Locus of Control, and Financial Well-Being. The study also indicates that Fintech App Use moderates the relationship between Financial Knowledge, Locus of Control, and Financial Well-Being. The present study contributes to the theoretical understanding of financial well-being by investigating the mediating and moderating factors influencing this construct.

Suggested Citation

  • Sabri Mohamad Fazli & Suhaimi Siti Shazwani Ahmad & Nazuri Nur Shuhamin & Magli Amirah Shazana & Burhan Nik Ahmad Suffian & Amim Othman Mohd., 2023. "The Moderating Role of Fintech App Usage in Lower-Income Households in Malaysia: A Financial Well-Being Roadmap," International Review of Financial Consumers, Sciendo, vol. 8(2), pages 1-20.
    • Handle: RePEc:vrs:irfinc:v:8:y:2023:i:2:p:1-20:n:1001
    DOI: 10.36544/irfc.2023.8-2.1
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    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General

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