The impact mobile banking adoption intention has on the relationship between financial literacy and financial well being in South Africa

Abstract

This purpose of this paper is to consider the impact that mobile banking adoption intention has on the relationship between financial literacy and financial well-being within the South African context. This paper leverages the Unified Theory of Acceptance and Use of Technology (UTAUT) as a grounding theoretical framework, integrated into the relationship between financial literacy and financial well-being. An alternative conceptual model was proposed based on related literature and a range of hypotheses were postulated. This study adopted a quantitative research methodology and utilised survey data from 199 banked adult consumers with a mobile banking application installed on their device. The study makes use of Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess the paths between the three constructs: financial literacy, financial well-being and mobile banking adoption intention. Findings from the study suggest that financial literacy may not be an antecedent to financial well-being without it being integrated to a third variable that influences the relationship between these two constructs. The results provide insights that can aid financial institutions such as banks and policymakers to consider the influencing impact of these relationships when attempting to enhance financial literacy initiatives and formulating strategies to increase adoption and usage of mobile banking applications in the ultimate pursuit of enhancing a consumer’s financial well-being.