Article: Development of a financial capability model: a hybrid dual-stage partial least square structural equation modelling and artificial neural network analysis Journal: International Journal of Economics and Business Research (IJEBR) 2025 Vol.29 No.14 pp.37 - 54 Abstract: This study investigates the impact of financial knowledge, financial attitude, financial technology, and financial advice on financial capability. Additionally, it analyses the influence of financial attitude and financial capability on financial satisfaction. The research is conducted through an individual-level survey in Albania. Two methods are used: first, partial least square structural equation modelling (PLS-SEM) is used to determine which constructs have a significant effect on financial capability; in the second phase, an artificial neural network (ANN) model is applied to rank the relative influence of significant determinants identified through by PLS-SEM. The findings reveal that financial knowledge and financial technology have a significant impact on financial capability. Furthermore, the study identifies financial attitude and financial capability as key predictors of financial satisfaction. In practice, these insights can help policymakers and financial institutions in Albania develop effective strategies to enhance financial technology programmes and tailor financial education initiatives. Inderscience Publishers - linking academia, business and industry through research

Title: Development of a financial capability model: a hybrid dual-stage partial least square structural equation modelling and artificial neural network analysis

Authors: Migena Petanaj; Lorena Çakërri; Robert Kosova

Addresses: Faculty of Economy, University of Vlora 'Ismail Qemali', Vlora, Albania ' Faculty of Economy, University of Vlora 'Ismail Qemali', Vlora, Albania ' Department of Mathematics, Faculty of Information Technology, University 'Aleksander Moisiu', Durres 2000, Albania

Abstract: This study investigates the impact of financial knowledge, financial attitude, financial technology, and financial advice on financial capability. Additionally, it analyses the influence of financial attitude and financial capability on financial satisfaction. The research is conducted through an individual-level survey in Albania. Two methods are used: first, partial least square structural equation modelling (PLS-SEM) is used to determine which constructs have a significant effect on financial capability; in the second phase, an artificial neural network (ANN) model is applied to rank the relative influence of significant determinants identified through by PLS-SEM. The findings reveal that financial knowledge and financial technology have a significant impact on financial capability. Furthermore, the study identifies financial attitude and financial capability as key predictors of financial satisfaction. In practice, these insights can help policymakers and financial institutions in Albania develop effective strategies to enhance financial technology programmes and tailor financial education initiatives.

Keywords: financial capability; financial satisfaction; financial knowledge; financial attitude; financial technology; financial advice; FAD; artificial neural network; ANN; PLS-SEM.

DOI: 10.1504/IJEBR.2025.146968

International Journal of Economics and Business Research, 2025 Vol.29 No.14, pp.37 - 54

Received: 20 Mar 2025
Accepted: 24 Apr 2025
Published online: 28 Jun 2025 *

Title: Development of a financial capability model: a hybrid dual-stage partial least square structural equation modelling and artificial neural network analysis

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