Implementation Of Financial Technology In Mediating The Effect Of Financial Literacy On Investment Decisions

Julita Julita

Abstract


Investment decisions are a process where a financial actor organizes and allocates funds in the form of money or goods owned into a form of investment that can be profitable in the future. The presence of fintech has had a positive impact on improving the economy because the volume and value of shopping transactions continues to increase. However, behind this positive side, the culture of online and cashless shopping raises problems, namely consumerism which can affect a person's financial behavior (Ulinnuha, et al., 2020). The existence of financial technology can make it easier for someone to carry out financial transactions. This research aims to find out the role of financial technology in mediating the influence of financial literacy on investment decisions. The population in this study was 681 students who were active at North Sumatra State Universities, with the sample determination method using a purposive random sampling technique and using the Slovin formula to obtain a sample of 88 respondents. The analysis technique used in this research is SEM-PLS. The results of the data analysis carried out show that a) financial literacy has a positive and significant effect on investment decisions, b) financial technology has no effect on investment decisions, and c) financial technology is unable to mediate the influence of financial literacy on investment decisions. This means that even with technological developments in the financial sector, we are not able to improve investment decisions even though we already have an understanding or knowledge of existing financial institution products/services.


Keywords


Financial Literacy, Financial Technology, Investment Decisions

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References


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DOI: https://doi.org/10.30596/miceb.v2i0.825

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