Financial Technology Proficiency as Leverage Factor of Financial Literacy affect on Investment Decisions

Authors

  • Ahmad Rizal Solihudin Universitas Ahmad Dahlan
  • Permata Dian Pratiwi Universitas Ahmad Dahlan
  • Mustika Rahmi Universitas Ahmad Dahlan
  • Bagus Gumelar Universitas Ahmad Dahlan

Keywords:

Financial Literacy, Financial Technology, Investment Decision

Abstract

Indonesia's financial literacy is only 38% in contrast to financial inclusion which reaches 78% resulting in an increased risk of financial management failure, fraudulent investment and embezzlement. On the other hand, fintech developments are increasingly rapidly adding to the dynamics of the financial market during this pandemic. This study aims to examine the effect of financial literacy on investment decisions by mastering fintech as mediation. The object of research focuses on millennial and z generation MSMEs who are considered to have the capacity to invest in the capital market and are technologically literate. The sampling technique in this study was purposive sampling with the sample criteria being young entrepreneurs investing in the capital market. Data analysis was carried out using Moderated Regression Analysis for hypothesis testing. The results in the study are (1) There is a positive effect of financial literacy on the investment decisions of young entrepreneurs. (2) There is a positive effect of fintech literacy on the investment decisions of young entrepreneurs. (3) Fintech literacy do not mediates the influence of financial literacy on the investment decisions of young entrepreneurs.

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Published

2023-12-31