Purpose This study investigates the impact of Digital Financial Literacy (DFL) on Sustainable Financial Decisions (SFD) among citizens of India, with particular emphasis on the mediating role of Environmental Concern (EC) and the moderating influence of demographic variables. The research aims to examine whether digital financial capability translates into sustainability-oriented financial behaviour within an emerging economy context, and how the resulting household demand shapes the funding environment and market for green start-ups and sustainable small and medium enterprises (SMEs). Design/Methodology/Approach A quantitative, cross-sectional research design was employed using primary data collected from 399 respondents across rural and urban regions of Delhi NCR through a structured questionnaire. Structural Equation Modelling (SEM) with bootstrapping techniques was applied to test direct, indirect, and moderated relationships among constructs. Independent sample t-tests and ANOVA were conducted to assess demographic differences in DFL, EC, and SFD. Findings The results indicate that DFL significantly predicts Environmental Concern (β = 0.472, p < 0.001) and Sustainable Financial Decisions (β = 0.518, p < 0.001). Environmental Concern partially mediates the relationship between DFL and SFD (β = 0.345, p < 0.001), demonstrating that environmental awareness strengthens the translation of digital financial capability into sustainable financial behaviour. Moderation analysis reveals that age and income significantly influence the EC–SFD relationship. Higher levels of DFL were observed among urban, educated, and private-sector respondents, highlighting demographic inequalities. Practical Implications The findings suggest integrating sustainability modules into digital financial literacy programmes, promoting ESG-based fintech interventions, and expanding inclusive digital infrastructure to reduce sustainability gaps, and highlight the opportunities for fintech entrepreneurs to design ESG-screening and green-investment products that channel retail household funds toward sustainable enterprises. Originality/Value The study provides early empirical evidence from India validating a moderated mediation framework linking DFL, EC, and SFD, contributing to the emerging literature on sustainable digital finance and on the household demand side of the green entrepreneurial finance ecosystem.

Digital financial literacy and sustainable finance decisions among households

期刊论文
发表日期：

2026年7月31日

查看全文

Happy Gupta,
Mansi Yadav

摘要

Purpose

This study investigates the impact of Digital Financial Literacy (DFL) on Sustainable Financial Decisions (SFD) among citizens of India, with particular emphasis on the mediating role of Environmental Concern (EC) and the moderating influence of demographic variables. The research aims to examine whether digital financial capability translates into sustainability-oriented financial behaviour within an emerging economy context, and how the resulting household demand shapes the funding environment and market for green start-ups and sustainable small and medium enterprises (SMEs).

Design/Methodology/Approach

A quantitative, cross-sectional research design was employed using primary data collected from 399 respondents across rural and urban regions of Delhi NCR through a structured questionnaire. Structural Equation Modelling (SEM) with bootstrapping techniques was applied to test direct, indirect, and moderated relationships among constructs. Independent sample t-tests and ANOVA were conducted to assess demographic differences in DFL, EC, and SFD.

Findings

The results indicate that DFL significantly predicts Environmental Concern (β = 0.472, p < 0.001) and Sustainable Financial Decisions (β = 0.518, p < 0.001). Environmental Concern partially mediates the relationship between DFL and SFD (β = 0.345, p < 0.001), demonstrating that environmental awareness strengthens the translation of digital financial capability into sustainable financial behaviour. Moderation analysis reveals that age and income significantly influence the EC–SFD relationship. Higher levels of DFL were observed among urban, educated, and private-sector respondents, highlighting demographic inequalities.

Practical Implications

The findings suggest integrating sustainability modules into digital financial literacy programmes, promoting ESG-based fintech interventions, and expanding inclusive digital infrastructure to reduce sustainability gaps, and highlight the opportunities for fintech entrepreneurs to design ESG-screening and green-investment products that channel retail household funds toward sustainable enterprises.

Originality/Value

The study provides early empirical evidence from India validating a moderated mediation framework linking DFL, EC, and SFD, contributing to the emerging literature on sustainable digital finance and on the household demand side of the green entrepreneurial finance ecosystem.