<p>The exploration of causes of and solutions to household financial vulnerability has become increasingly prominent. This study proposes the theoretical framework of financial capability through which financial technology (Fintech) is related with household financial vulnerability. Using multi-wave data from China Household Financial Survey (CHFS), we find that there is a negative association between the development of Fintech and household financial vulnerability. The finding still holds after a series of robustness tests and endogeneity problem treatment. Mechanism analysis provides evidences that Fintech alleviates household financial vulnerability as it improves household financial capability, therefore further improving optimal allocation of household assets, debt management, risk transfer through commercial insurance and income structure. Furthermore, heterogeneity analysis reveals that the marginal effects of Fintech are greater for poorer and middle-aged households, households with better access to digital devices and urban households, indicating a mixed role of Fintech in terms of its inclusiveness.</p>