The Effect of Financial Literacy and Financial Technology (Fintech) on Saving Behavior, with Digital Literacy as a Moderating Variable, among Generation Z in Cianjur Regency

Abstract

Despite the growing use of financial technology (fintech), many members of Generation Z still struggle to establish consistent saving habits, despite the fact that saving behaviour is a crucial part of personal financial management. The effects of fintech and financial literacy on saving behaviour have been the subject of conflicting research in the past, and little emphasis has been paid to the moderating influence of digital literacy, especially among Generation Z in Cianjur Regency. With digital literacy acting as a moderating variable, this study attempts to investigate how financial technology (fintech) and financial literacy affect saving behaviour. 161 members of Generation Z who were chosen by simple random sampling participated in a quantitative survey. Structured questionnaires were used to gather primary data, and Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4.0 was used for analysis. The findings show that while fintech has no discernible direct impact on saving behaviour, financial literacy has a favourable and considerable impact. Nonetheless, the F-test shows that fintech and financial literacy both significantly influence saving behaviour at the same time (F = 97.34 > F-table = 3.05), accounting for 55.2% of the variance (R² = 0.552). Additionally, the connections between financial literacy and saving behaviour, as well as between fintech and saving behaviour, are considerably strengthened by digital literacy.