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

Sabri Mohamad Fazli (), Suhaimi Siti Shazwani Ahmad, Nazuri Nur Shuhamin, Magli Amirah Shazana, Burhan Nik Ahmad Suffian and Amim Othman Mohd.
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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

International Review of Financial Consumers, 2023, vol. 8, issue 2, 1-20

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.

Keywords: Financial Well-Being; Malaysia B40; Financial Knowledge; Financial Technology; Financial Behaviour (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/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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