Investment Behavior in the Fintech Era: A Serial Mediation Analysis

Abstract

This study aimed to investigate the correlation between financial self-efficacy and investment behavior, and whether this correlation is influenced by consumer fintech use and digital financial literacy among millennials and Generation Z. A serial mediation model was constructed to examine the potential link. A sample of 301 millennials and Gen Z individuals from the Gaya district of Bihar participated in an online survey questionnaire. SmartPLS4 was used for the data analysis. The study found a significant positive correlation between Financial Self-Efficacy and Investment behavior, Financial Self-Efficacy and Consumer fintech utilization, Consumer fintech utilization and Digital Financial Literacy, and Digital Financial Literacy and Investment behavior. The findings also indicated that Consumer Fintech Utilization and Digital Financial Literacy sequentially moderated the connection between Financial Self-Efficacy and Investment Behavior. The results illuminate the core mechanisms that underpin the investment behavior of Gen Z and millennials in this fintech era. Policymakers need to regulate fintech apps to ensure embedded educational content (e.g., risk disclaimers, glossary features) aligns with literacy development goals. Fintech Developers need to design interfaces that boost user self-efficacy (e.g., onboarding tutorials, confidence-building feedback) to promote sustained engagement and better investment behavior.