The Effect Of Financial Technology (Fintech) And Financial Experience On Generation Z’s Financial Management Behavior Mediated By Locus Of Control

Abstract

This study aims to analyze the influence of financial technology (fintech) and financial experience on the financial management behavior of Generation Z, with locus of control as a mediating variable. The background of this research is based on the phenomenon of poor financial management among Generation Z in Indonesia, characterized by high levels of consumptive behavior and low awareness of long-term financial planning. This study employs a descriptive quantitative approach using a survey method, with questionnaires distributed to 110 Generation Z respondents in Malang City who have used at least one fintech service. Data were analyzed using Structural Equation Modeling-Partial Least Square (SEM-PLS) with the SmartPLS 4.1.9 software. The results reveal that fintech has no significant effect on financial management behavior, whereas financial experience has a positive effect. Both fintech and financial experience positively influence locus of control. Furthermore, locus of control is proven to fully mediate the influence of fintech on the financial management behavior of Generation Z. However, locus of control does not mediate the effect of financial experience on financial management behavior. This study contributes to the development of financial behavior literature and provides practical implications for fintech developers and Generation Z in improving the quality of personal financial management.

Keywords: Fintech, Financial Experience, Locus of Control, Financial Management Behavior, Generation Z