Digital Financial Literacy and Investment Intention: The Mediating Roles of Risk Perception and Financial Self-Efficacy

Abstract

Indonesia's financial inclusion has expanded through digital financial services, while financial literacy remains lower than financial inclusion, creating a persistent capability gap in digital financial decision-making. This study examines the relationship between digital financial literacy and investment intention through two parallel mediators: financial self-efficacy and risk perception. Data were collected in 2026 from 120 Indonesian users of digital financial applications through purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3. The measurement model met the required criteria for convergent validity, discriminant validity, and reliability. Digital financial literacy had significant positive effects on financial self-efficacy and risk perception, but its direct effect on investment intention was not statistically significant. Financial self-efficacy and risk perception each had significant positive effects on investment intention, and both specific indirect effects were significant while the direct path was not. These results establish an indirect-only mediation pattern in which digital financial literacy is associated with investment intention through financial confidence and informed risk perception. The study contributes to behavioral finance by demonstrating two parallel psychological mechanisms that connect digital financial literacy with investment intention and by highlighting practical implications for digital financial education.