The Mediating Role of Trust in Linking Digital Financial Capability and Technology Usage with Digital Financial Consumer Behavior

Abstract

This study attempts to explain the relationship between two independent variables Digital Financial Capability and Technology Usage and the dependent variable Digital Financial Consumer Behavior in the context of the banking sector in Pakistan with the help of the mediating construct, Trust. Based on Capability Theory developed by Sen and the diffusion of innovation theory, the enquiry aims at contributing to the academic understanding of consumer behavior in the Pakistani Digital Banking System. A questionnaire was compiled as an online survey after administering it to 385 respondents in the Punjab Province, Pakistan. Descriptive statistics, inferential procedures, correlation coefficients, and reliability tests were found to give statistically significant and positive association between digital financial capability, technology usage, and digital financial consumer behavior and a mediating role of trust in this association. These results serve the theoretical model by highlighting how important the concept of trust in digital financial contexts is and how the trust-based approaches play an essential role in the development of digital banking in the developing economy.

Key words: Digital Financial Capability, Technology Usage, Trust and Digital Financial Consumer Behavior.