The effect of financial literacy and fintech usage on income levels: a study in Vietnam

Purpose Drawing from the economic growth theory and the human capital theory, this study investigates the relationship between financial literacy, the use of financial technology (fintech) and income levels of graduates in Vietnam. Design/methodology/approach Data were collected through a web-based survey in 2023. The questionnaire was designed on “Google Form” and sent randomly to Vietnamese graduates via social networks such as Facebook and Zalo. Final data consisted of 450 respondents. The three techniques used are ordinary least square, ordinal logit and structural equation model. Findings The results show that financial literacy and the use of fintech positively affect income levels. Basic and advanced financial literacy have an impact on the use of fintech and income levels. Financial literacy also has an indirect impact on income levels. Practical implications The scale of postgraduate financial training in Vietnam needs to be increased as the financial literacy of Vietnamese is still low compared to the world. An increase in financial literacy will increase the effectiveness of using fintech services and increase income levels. Originality/value This study is the first to build a research model focusing on the role of financial literacy and fintech usage in increasing income levels. In particular, fintech usage is a mediator between financial literacy and income levels. Next, this is also the first time these issues have been mentioned in Vietnam. Finally, this paper helps policymakers in attracting more businesses to invest in Vietnam and developing a fintech market that can help people increase their income and thus reduce poverty.