From Digital Financial Competence to Financial Resilience: The Mediating Role of Financial Self-Efficacy among Digital Financial Service Users in Tomohon, Indonesia
Keywords:
Digital financial competence, Financial self-efficacy, Financial resilience, Digital financial services, Social Cognitive TheoryAbstract
The rapid expansion of digital financial services has transformed financial inclusion strategies across emerging economies. However, increasing evidence suggests that access to digital financial technologies does not automatically translate into financial resilience, as many digitally connected individuals remain financially vulnerable. Addressing this gap, this study examines how digital financial competence contributes to financial resilience and investigates the mediating role of financial self-efficacy within this relationship. Drawing on Social Cognitive Theory, the study proposes that digital financial competence enhances financial resilience both directly and indirectly through financial self-efficacy, reflecting individuals’ confidence in managing financial decisions and adapting to financial challenges. Data were collected from 100 users of digital financial services in Tomohon City, Indonesia, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that digital financial competence positively influences both financial self-efficacy and financial resilience. Financial self-efficacy also exerts a significant positive effect on financial resilience and partially mediates the relationship between digital financial competence and financial resilience. The model explains 41.4% of the variance in financial self-efficacy and 52.8% of the variance in financial resilience, indicating moderate explanatory and predictive capability. This study contributes to existing digital finance research by integrating psychological capability into the competence–resilience pathway, demonstrating that digital financial competence strengthens resilience through self-regulatory beliefs rather than through digital access alone. Financial resilience is conceptualized as a higher-order outcome because it reflects individuals' capacity to sustain financial well-being and adapt to financial uncertainty beyond merely possessing financial knowledge or engaging in routine financial behaviors. The findings suggest that sustainable financial inclusion requires not only wider digital access but also the development of digital financial competencies and psychological capabilities that enable individuals to translate digital opportunities into long-term financial resilience.
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