How Financial Literacy and Fintech Usage Influence Generation Z Investment Behavior: The Mediating Role of Financial Behavior

Irdawati Irdawati(1*), Septy Indra Santoso(2), Roswiyanti Roswiyanti(3), Johannes Baptista Halik(4),

(1) Master of Management Department, Mulia Pratama College of Economics, Bekasi, Indonesia
(2) Accounting Department, Khairun University, Ternate, Indonesia
(3) Management Department, Cokroaminoto University of Makassar, Makassar, Indonesia
(4) Master of Management Department, Paulus Christian University of Indonesia, Makassar, Indonesia
(*) Corresponding Author

Abstract


This study examines the influence of financial literacy and fintech usage on the investment behavior of Generation Z in Indonesia, with financial behavior serving as a mediating variable. A quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS) was employed to analyze data collected from 200 Generation Z respondents with investment experience. The findings indicate that financial literacy and fintech usage significantly enhance financial behavior, while financial behavior significantly promotes investment behavior. Financial literacy also exerts a direct positive effect on investment behavior, whereas fintech usage has no significant direct influence. Financial behavior significantly mediates the relationships between financial literacy and investment behavior, as well as between fintech usage and investment behavior. The structural model demonstrates moderate explanatory power, with R² values of 0.413 for financial behavior and 0.406 for investment behavior, indicating that the proposed model explains a substantial proportion of the variance in both endogenous constructs. These findings emphasize that strengthening healthy financial behavior is the primary mechanism through which financial knowledge and digital financial technology translate into better investment decisions among Generation Z. Practically, the study suggests that policymakers, educational institutions, and fintech providers should integrate behavioral-based financial education with digital financial services to encourage sustainable investment participation among young adults.

Keywords


Financial Literacy, Fintech, Financial Behavior, Investment Behavior, Generation Z

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DOI: http://dx.doi.org/10.33019/ijbe.v10i3.1278

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