Financial behaviour translates digital literacy financial knowledge and financial attitude into sustainable financial capability in Vietnam

Abstract This study examines how financial capability is formed in digitally mediated financial environments by testing whether financial behaviour mediates the effects of financial knowledge, financial attitude, and digital literacy on financial capability. The study advances a behaviour-mediated digital capability perspective, which differs from conventional financial capability explanations by treating knowledge, attitude, and digital literacy as enabling resources that must be enacted through everyday financial practices before they can support capability. Survey data were collected from 402 adult Vietnamese respondents who had prior experience with financial activities and digital financial services, including saving, investment, online banking, mobile payments, and financial applications. The data were analysed using partial least squares structural equation modelling. The findings show that financial knowledge, financial attitude, and digital literacy are positively associated with financial behaviour, with financial knowledge showing the largest behavioural effect. Financial behaviour is positively associated with financial capability and mediates the three antecedent-capability relationships. The findings suggest that financial capability in emerging digital economies is not strengthened by digital access or financial knowledge alone, but by individuals’ ability to convert these resources into responsible behaviours such as budgeting, planning, monitoring transactions, and managing financial risk. The study contributes to sustainable digital finance by showing why capability-building initiatives should combine financial knowledge, digital literacy, and behavioural design. By linking financial capability to inclusive and responsible digital finance, the study also speaks to the Sustainable Development Goals (SDGs), particularly quality education, decent economic participation, innovation, reduced inequality, and responsible consumption.