Development of a financial behaviour model: a PLS-SEM approach

Abstract

This study investigates the influence of financial knowledge, financial attitude, and financial technology on individuals’ financial behaviour within the context of an increasingly digital financial environment. Data were collected through a structured online survey administered between June and July 2024. The questionnaire comprised two main sections: demographic information and measurement items related to the proposed constructs. To test the hypothesised relationships, partial least squares structural equation modelling (PLS-SEM) and the PLS predict technique were employed. The findings provide empirical support for all three hypotheses, indicating that financial knowledge, financial attitude, and financial technology each have a direct and positive effect on financial behaviour. The study contributes to the existing literature on financial behaviour and offers practical implications for educators, policymakers, and fintech developers aiming to promote financial well-being through targeted interventions and digital innovation.