The Trust-Inclusion Paradox: How Fraud Risk Perceptions Shape Digital Financial Behavior in Vietnam's Emerging Fintech Ecosystem

This study investigates the complex relationships between trust dynamics, fraud risk perception, and digital financial behavior in Vietnam's emerging FinTech ecosystem, with particular attention to the mediating role of digital financial literacy and the moderating effect of institutional support. Using a quantitative approach, data were collected from 726 digital financial service users through a structured questionnaire. The research employed a dual analytical strategy combining structural equation modeling (SEM) with fuzzy-set qualitative comparative analysis (fsQCA) to provide comprehensive insights into both net effects and configurational conditions leading to digital financial inclusion. The findings reveal that trust dynamics positively influence digital financial behavior, with technological trust showing the strongest effect (β = 0.356), while fraud risk perception demonstrates significant negative impacts. Digital financial literacy emerges as a crucial mediating mechanism, accounting for approximately one-third of the total effects in both trust-risk relationships. The fsQCA results identify three distinct configurational paths to high digital financial behavior, with the combination of high trust, low fraud risk, and high digital literacy showing the strongest empirical relevance. This study contributes to the literature by providing an integrated model of digital financial behavior, establishing the crucial role of digital financial literacy as a mediating mechanism, and identifying multiple pathways to digital financial inclusion in emerging markets. These findings offer valuable insights for policymakers and FinTech providers in developing effective strategies for promoting digital financial inclusion.