Examining the Role of Trust and Financial Self-Efficacy in the Relationship Between Financial and Technological Literacy and FinTech Adoption Among Pakistani University Students

The study evaluated how financial literacy, technology literacy, and financial self-efficacy have some influence on the use of FinTech services by university students in Pakistan. The model takes trust in FinTech as a mediating variable and financial self-efficacy as a moderating variable. Given the fast-growing trend of digital financial systems, these behavioural and cognitive aspects have become important in fostering financial inclusion in the developing economies as well as digital empowerment. Quantitative approach was used as a research design, and structured and self-administered questionnaire was used to collect data. The sample was taken in undergraduate and postgraduate students in the universities in Pakistan (both government and private) which is becoming more digital literate and financial oriented. It was targeted on 340 people; but focusing on the convenience sampling, just based on accessibility and feasibility, a total of 310 valid responses was achieved in the corresponding rule-of-thumb requirements of Structural Equation Modelling (SEM). The results indicate that financial literacy, technology literacy, and financial self-efficacy have a strong positive impact on the FinTech adoption. In addition, the relationship between these two nuisance variables and the adoption behaviour is mediated by trust in FinTech. The study is beneficial to the financial services industry, suggesting FinTech organizations, banks and administrators come up with specific financial literacy programs and trust-inspiring measures. This situation may be resolved by improving digital capabilities among young people to further use FinTech services, which would enhance financial inclusion and benefit Pakistan in its overall objectives of economic and digital financial evolution.