Enhancing Financial Literacy through Fintech: A Study on Aceh's Millennials with Gender and Education as Moderators

Document Type : Research Paper

Authors

1 Department of Management, Universitas Syiah Kuala, Banda Aceh, Indonesia.

2 Department of Accounting, Universitas Syiah Kuala, Banda Aceh, Indonesia.

3 Department of Economics, Universitas Syiah Kuala, Banda Aceh, Indonesia.

10.22059/ier.2025.358272.1007699

Abstract

Financial technology (fintech) has emerged as a transformative tool for promoting financial inclusion and enhancing financial literacy, particularly among the millennial generation. This study investigates the impact of fintech—specifically its dimensions of knowledge, usage, and accessibility—on the financial literacy of millennials in Aceh, Indonesia. Furthermore, the study examines whether gender and education level moderate these relationships. A quantitative approach was employed, utilizing both Structural Equation Modeling (SEM) and Moderated Multiple Regression (MMR) to ensure robust analysis. The sample consisted of 328 millennial respondents, selected through purposive sampling. The findings reveal that fintech knowledge, usage, and accessibility each have a significant and positive effect on financial literacy. Additionally, both gender and education were found to moderate these relationships; however, the moderation did not differ significantly between male and female groups or across educational levels. This indicates that while gender and education enhance the strength of the relationship between fintech and financial literacy, their moderating effects are consistent across groups. These results suggest the need for inclusive financial education strategies that cater to all demographic segments. Financial institutions and policymakers should focus on increasing access to fintech tools and strengthening financial literacy programs without bias toward gender or educational background. Future studies are encouraged to replicate this research in other regions and to explore additional moderating variables that may influence fintech adoption and financial capability among youth.
 

Keywords

Main Subjects


Abreu, M., & Mendes, V. (2010). Financial Literacy and Portfolio Diversification. Quantitative Finance, 10(5), 515–528. Retrieved from https://doi.org/10.1080/14697680902878105
Aguinis, H. (2004). Regression Analysis for Categorical Moderators. New York: Guilford Press.
Albaity, M., & Rahman, M. (2019). The Intention to Use Islamic Banking: An Exploratory Study to Measure Islamic Financial Literacy. International Journal of Emerging Markets, 14(5), 988–1012. Retrieved from https://doi.org/10.1108/IJOEM-05-2018-0218
Amaliyah, R., & Witiastuti, R. S. (2015). Analysis of Factors Influencing Financial Literacy among SMEs in Tegal City. Jurnal Manajemen Analisis, 4(3). Retrieved from https://doi.org/10.15294/maj.v4i3.8876
Ameer, R., & Khan, R. (2020). Financial Socialization, Financial Literacy, and Financial Behavior of Adults in New Zealand. Journal of Financial Counseling and Planning, 31(2), 313–329. Retrieved from https://doi.org/10.1891/JFCP-18-00042
Ansong, A., & Gyensare, M. A. (2012). Determinants of University Working- Students’ Financial Literacy at the University of Cape Coast, Ghana. International Journal of Business and Management, 7(9). Retrieved from https://doi.org/10.5539/ijbm.v7n9p126
Broby, D. (2021). Financial Technology and the Future of Banking. Financial Innovation7(1), 47. Retrieved from https://doi.org/10.1186/s40854-021-00264-y
Chen, H., & Volpe, R. P. (2002). Gender Differences in Personal Financial Literacy among College Students. Financial Services Review11(3), 289-307. Retrieved from https://www.academia.edu/download/29087611/vol11_a18.pdf
Chrismastianto, I. A. (2017). SWOT Analysis of Financial Technology Implementation on the Quality of Banking Services in Indonesia. Journal of Economics and Business20(1), 133-144. Retrieved from https://doi.org/10.24914/jeb.v20i1.641
Darmawan, A. F., & Pratiwi, A. (2020). The Effect of Family Financial Education, Financial Learning in Higher Education, Financial Attitudes, and Peers on Student Financial Literacy. Fokus Bisnis: Media Pengkajian Manajemen dan Akuntansi, 19(1), 27-37. Retrieved from http://dx.doi.org/10.32639/fokusbisnis.v19i1.499
Daqar, M. A., Arqawi, S., & Karsh, S. A. (2020). Fintech in the eyes of Millennials and Generation Z (The Financial Behavior and Fintech Perception). Banks and Bank Systems15(3), 20-28. Retrieved from http://dx.doi.org/10.21511/bbs.15(3).2020.03
Economy SEA. (2022). Retrieved from https://economysea.withgoogle.com/report/
Frey, W. H. (2018). A Demographic Bridge to America's Diverse Future. Retrieved from https://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1130&context=brookings_lectures_events
Ghozali, I. (2005). Multivariate Analysis Application with SPSS. Semarang: Badan Penerbit UNDIP.
Jaccard, J., & Turrisi, R. (2003). Interaction Effects in Multiple Regression (2nd Ed.). Thousand Oak, CA: Sage Publications.
Li, Y., Li, Z., Su, F., Wang, Q., & Wang, Q. (2020). Fintech Penetration, Financial Literacy, and Financial Decision‐Making: Empirical Analysis Based on Tar. Complexity2020(1), 6696312. Retrieved from https://doi.org/10.1155/2020/6696312
Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. American Economic Journal: Journal of Economic Literature52(1), 5-44. Retrieved from http://dx.doi.org/10.1257/jel.52.1.5
Mahdzan, N. S., & Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: An Exploratory Study in the Malaysian Context. Transformations in Business and Economics, 12(1), 41–55. Retrieved from https://www.researchgate.net/
Margaretha, F., & Pambudhi, R. A. (2015). Financial Literacy Level of Economics Faculty Students. Journal of Management and Entrepreneurship, 17(1), 76-85. Retrieved from https://doi.org/10.9744/jmk.17.1.76-85
Marpaung, O. (2021). The Effect of Knowledge of Using Fintech (Ovo and Gopay) on Financial Literacy. Jurnal Akuntansi & Perpajakan Jayakarta, 2(2), 77-85. Retrieved from http://journal.stiejayakarta.ac.id/index.php/JAPJayakarta/article/view/57
Mulasiswi, C. M., & Julialevi, K. O. (2020). Optimizing Financial Technology (Fintech) to Enhance Financial Literacy and Inclusion of Medium Enterprises in Purwokerto. Performance, 27(1), 12–20. Retrieved from http://dx.doi.org/10.20884/1.jp.2020.27.1.2284
Mustikasari, Y., & Noviardy, A. (2020). The Influence of Financial Technology in Increasing Financial Literacy for Micro, Small, and Medium Enterprises in Palembang City. JIBM, 03(2), 147–155. Retrieved from https://doi.org/10.33557/jibm.v3i2.1135
NDRC. (2022). Retrieved from https://www.ndrc.ie/
OECD. (2016). Retrieved from https://www.oecd.org/
OJK. (2023). Retrieved from https://www.ojk.go.id/
Palameta, B., Nguyen, C., Hui, T. S. W., Gyarmati, D., Wagner, R. A., Rose, N., & Llp, F. (2016). Link between Financial Confidence and Financial Outcomes among Working-Aged Canadians. Ottawa: Social Research and Demonstration Corporation.
Panos, G. A., & Wilson, J. O. (2020). Financial Literacy and Responsible Finance in the FinTech Era: Capabilities and Challenges. The European Journal of Finance26(4-5), 297-301. Retrieved from https://doi.org/10.1080/1351847X.2020.1717569
Rai, K., Dua, S., & Yadav, M. (2019). Association of Financial Attitude, Financial Behaviour, and Financial Knowledge towards Financial Literacy: A Structural Equation Modeling Approach. FIIB Business Review8(1), 51-60. Retrieved from https://doi.org/10.1177/2319714519826651
Robb, C. A., & Woodyard, A. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning22(1), 60-70. Retrieved from https://ssrn.com/abstract=2061308
Silva, T. C., Braz, T., Amancio, D. R., & Tabak, B. M. (2022). Financial Literacy and the Perceived Value of Stress Testing: An Experiment Using Students in Brazil. Emerging Markets Finance and Trade, 58(4), 965–996. Retrieved from https://doi.org/10.1080/1540496X.2020.1856070
Sugiarti, E. N., Diana, N., & Mawardi, M. C. (2019). The Role of Fintech in Improving Financial Literacy in Micro, Small, and Medium Enterprises in Malang. Jurnal Ilmiah Riset Akuntansi, 8(4).
Sugiyono. (2014). Administrative Research Methods. Bandung: Alfabeta.
Usmayanti, V., & Kadar, M. (2022). Systematic Analysis of Financial Literacy Research. Jurnal Manajemen, 1(1), 19-28. Retrieved from https://doi.org/10.33998/jumanage.2022.1.1.28
Walfazri, M. (2019). Distribution of Fintech Lending Loans in Aceh is only 0.3% of the National Total. Retrieved January 19, 2021 from https://amp.kontan.co.id/news/penyaluran-pinjaman-fintech-lending-di-aceh-hanya-03-dari-total-nasional
Yuliani, Y. U. L. I. A. N. I., Fuadah, L. L., & Taufik, T. (2019). The Effect of Financial Knowledge on Financial Literacy with Mediated by Financial Behavior in the Society of Palembang City, South Sumatra. Jurnal Ilmiah Manajemen, 9(3), 421-430. Retrieved from https://www.neliti.com/publications/293234/the-effect-of-financial-knowledge-on-financial-literacy-with-mediated-by-financi