The Role of Financial Literacy, Risk Perception and Lifestyle to Influence Online Loan Decision

Purpose: This study aims to investigate the role of risk perception and lifestyle in mediating the influence of financial literacy on online loan decision by study on generation z. Methodology/approach: The type of research is explanatory research through a quantitative approach with a positivism paradigm. Primary data were collected from 240 generation z in East Java through questionnaire. Findings: Financial literacy and lifestyle have a positive and significant effect on online loan decision, beside that financial literacy has a positive and significant effect on risk perception and lifestyle. Furthermore, risk perception doesn’t have a significant effect on online loan decision. Overall, risk perception can’t mediate financial literacy on online loan decision while lifestyle is partially mediate financial literacy on online loan decision. Practical implications: This research is expected to contribute knowledge for generation z to make online loan decision wisely and can be an input for financial institutions to stricter regulations to maintain financial stability. Originality/value: This study adds mediating variable of risk perception and lifestyle, which are thought to have a combined the influence of financial literacy on online loan decision which the aims to answer inconsistency of previous research.