Digital financial services use and life satisfaction: Is financial well‐being a mediator?

As digital financial services (DFS) become increasingly important in personal financial management, understanding their implications for individual well‐being is critical. Although prior research has focused on financial inclusion and digital finance access, less is known about the mechanisms through which DFS influence broader well‐being outcomes. This study examines the relationship between DFS use, financial well‐being, and life satisfaction, with financial well‐being conceptualized as a mediating factor. Data were drawn from a sample of 1552 Korean adults aged 25–59 who completed an online survey and provided valid responses for analysis. Financial well‐being was assessed with the Consumer Financial Protection Bureau's financial well‐being scale, and life satisfaction was measured using Cantril's ladder and the feeling thermometer. Mediation analyses reveal that DFS use is positively associated with financial well‐being, which in turn significantly influences life satisfaction. Importantly, the relationship between DFS use and life satisfaction is fully mediated by financial well‐being, with no significant direct effect once financial well‐being is accounted for. This mediation pathway is driven primarily by transactional DFS—such as mobile banking, payments, and credit card management—rather than investment‐oriented DFS. These findings suggest that the well‐being benefits of DFS arise from the ways digital services enable individuals to manage routine financial matters more effectively. This study highlights the importance of designing inclusive DFS platforms that enhance financial well‐being as a pathway to improving life satisfaction.