Digital Finance for Sustainable Living: The Role of Digital Financial Literacy and FinTech with Mediation of Financial Behaviour among Malaysian Working Adults

Abstract

The rapid digitalisation of financial services has transformed how individuals manage their personal finances, particularly in emerging economies such as Malaysia. While financial technology (FinTech) and digital financial services have expanded access to financial products, their implications for long-term financial sustainability remain insufficiently understood. This study investigates the role of digital financial literacy and FinTech usage in shaping financial behaviour and financial sustainability among Malaysian working adults. A quantitative research design was employed using a structured survey administered to working adults aged 30–65 across five Malaysian states. A multistage probability sampling approach was adopted, resulting in 410 valid responses. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that digital financial literacy and FinTech are significantly associated with financial behaviour. In turn, financial behaviour demonstrates a strong positive effect on financial sustainability. Mediation analysis further indicates that financial behaviour partially mediates the relationships between digital financial literacy and financial sustainability, as well as between FinTech usage and financial sustainability.These results highlight the critical role of financial behaviour as a behavioural mechanism through which digital financial capabilities translate into sustainable financial outcomes. The study contributes to the growing literature on financial capability by integrating digital financial literacy and FinTech within a unified behavioural framework. From a policy perspective, the findings underscore the importance of strengthening digital financial literacy and promoting responsible financial behaviour to enhance household financial resilience. Such initiatives are particularly relevant for Malaysia as it advances towards a digitally inclusive financial ecosystem.