Title: Factors influencing Fintech adoption among Malaysian consumers: the moderating role of Fintech literacy

Authors: Mohamad Fazli Sabri; Siong Hook Law; Chong Kok Fei; Anthony Ang Sang Nang; Husniyah Abdul Rahim; Mervin Anthony

Addresses: Faculty of Human Ecology, Department of Resource Management & Consumer Studies, Universiti Putra Malaysia, Serdang, Selangor, 43400, Malaysia ' Division of Economics, School of Business & Economics, Universiti Putra Malaysia, Serdang, Selangor, 43400, Malaysia ' Faculty of Human Ecology, Department of Resource Management & Consumer Studies, Universiti Putra Malaysia, Serdang, Selangor, 43400, Malaysia ' Faculty of Human Ecology, Department of Resource Management & Consumer Studies, Universiti Putra Malaysia, Serdang, Selangor, 43400, Malaysia ' Faculty of Human Ecology, Department of Resource Management & Consumer Studies, Universiti Putra Malaysia, Serdang, Selangor, 43400, Malaysia ' Malaysian Financial Planning Council, Kuala Lumpur, 50480, Malaysia

Abstract: This study explores the factors influencing FinTech adoption among various demographic groups in Malaysia, including public and private sector workers, rural residents, and youths. It also examines the moderating role of FinTech literacy using an integrated framework based on systems theory and the unified theory of acceptance and use of technology (UTAUT). Employing a quantitative approach with survey data and structural equation modelling, the findings show that while FinTech literacy improves awareness and access, it may also increase reliance on traditional banking due to security concerns, regulatory uncertainties, and a preference for personalised services. The study reveals a non-linear relationship between financial literacy and FinTech adoption, challenging traditional assumptions about digital finance behaviour. It offers policy recommendations to enhance consumer protection and develop FinTech solutions. The research highlights the need for building digital trust, strengthening security features, and promoting hybrid financial models that merge traditional and digital financial services.

Keywords: financial capability; FinTech; investment; literacy; risk; social influence.

DOI: 10.1504/IJMEF.2025.148851

International Journal of Monetary Economics and Finance, 2025 Vol.18 No.5, pp.349 - 375

Received: 08 Oct 2024
Accepted: 23 Jun 2025
Published online: 29 Sep 2025 *

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