MOBILE BANKING ADOPTION AND FINANCIAL MANAGEMENT BEHAVIOUR: THE ROLE OF FINANCIAL SELF-EFFICACY AND FINANCIAL ANXIETY

This study examines the effect of mobile banking adoption on financial management behaviour, with financial self-efficacy as a mediator and financial anxiety as a moderator. Drawing on social cognitive theory, the study argues that the regular use of mobile banking builds users' confidence in managing money, which in turn improves their financial management behaviour, while financial anxiety weakens these relationships. Data were collected through a structured questionnaire from 385 young adult mobile banking users in Pakistan, selected through purposive sampling, and the proposed model was tested using partial least squares structural equation modelling. The results show that mobile banking adoption has a positive effect on both financial self-efficacy and financial management behaviour, and that financial self-efficacy positively affects financial management behaviour. Financial self-efficacy partially mediates the relationship between mobile banking adoption and financial management behaviour. Moreover, financial anxiety weakens both the relationship between mobile banking adoption and financial self-efficacy and the relationship between financial self-efficacy and financial management behaviour. The study contributes to the literature by explaining how a digital financial tool shapes financial behaviour through a psychological mechanism and by showing that emotional factors limit the benefits of mobile banking. The findings suggest that banks and fintech firms should design mobile banking features that build users' confidence and reduce financial stress, and that policymakers and financial educators should combine digital access with efforts to strengthen financial confidence and manage financial anxiety. Keywords: Mobile banking adoption; financial self-efficacy; financial anxiety; financial management behaviour.