Does Fintech Usage Improve or Impair Financial Behavior? Evidence from Indian millennials

Title

Does Fintech Usage Improve or Impair Financial Behavior? Evidence from Indian millennials

Creator

Prabhakaran, Shamli; Mynavathi, L.

Description

The fintech revolution has transformed the landscape of personal finance, but its impact on individual financial behavior remains underexplored. Addressing this gap, the present study examines how fintech usage interacts with financial literacy to shape financial behavior among Indian millennials. Using a proprietary dataset, the study employs PLS-SEM to assess the moderating role of fintech usage in the relationship between financial literacy and financial behavior, considering both objective and subjective dimensions of financial literacy. The findings indicate that while financial literacy positively influences financial behavior, using fintech weakens this association. This negative influence is especially evident among users who overestimate their financial competence. The direct impact of fintech usage on financial behavior is also negative, showcasing the need for fintech services that complement users' financial literacy and promote financially healthy behaviors. These findings shed light on the darker side of fintech adoption and have significant implications for policymakers, fintech service providers, and consumers, emphasizing the need for tailored financial literacy programs that promote responsible fintech usage and encourage financial discipline. 2025 Academy of Taiwan Information Systems Research. All rights reserved.

Source

International Journal of Electronic Commerce Studies;Volume;16;Issue;4;pp.1-26

Date

01-01-2025

Publisher

Academy of Taiwan Information Systems Research

Subject

financial behavior; Financial literacy; fintech usage; objective financial literacy; subjective financial literacy

Coverage

Prabhakaran S., CHRIST (Deemed to be University, India; Mynavathi L., CHRIST (Deemed to be University, India

Rights

All Open Access; Gold Open Access

Relation

ISSN: 20739729;

Format

online

Language

English

Type

Article

Identifier

https://doi.org/10.7903/ijecs.2529

https://www.scopus.com/pages/publications/105027252159?origin=resultslist