Financial Literacy and Fintech Exposure As Determinants of Investment Decisions: The Mediating Role of Investment Interests – A Study of Individual Investors in Hyderabad, India

  • Authors

    • Dr. Syed Jaffer Assistant Professor, School of Business, GITAM -Deemed to be University, Hyderabad, ‎India
    • Dr. Mohamed Zaheeruddin Lecturer, Accounting and Finance Unit, Department of Business Administration, University of ‎ Technology and Applied Sciences- Shinas, Sultanate of Oman
    • Dr. Roopalatha N Assistant Professor, School of Business, GITAM -Deemed to be University, Hyderabad, India
    • Dr. Farhana Sultana Senior Faculty, Accounting and Finance Unit, Department of Business Administration, ‎University of Technology and Applied Sciences-Shinas, Sultanate of Oman
    • Dr. GNPV Babu Associate Professor, School of Business and Management, Yeswanthpur Campus Christ University, Bengaluru
    • Mr. Pinninti Siva Kumar Assistant Professor, Department of Commerce, Indian Institute of Management and ‎Commerce, Hyderabad, India
    https://doi.org/10.14419/87y3za88

    Received date: July 7, 2025

    Accepted date: September 6, 2025

    Published date: September 13, 2025

  • Financial Proficiencies; Prudential Investments; Behavioural Finance; Financial Literacy; Fintech ‎Adoption; ETC

  • Abstract

    The evolution of the financial sector, particularly the rise of financial technologies (Fintech), ‎has reshaped how individual investors make investment decisions. This study investigates the ‎influence of financial literacy and fintech exposure on individual investment decisions in the ‎underexplored emerging markets like Hyderabad, emphasising the mediating role of ‎investment interest. Drawing on behavioural finance theory and empirical studies, the research ‎explores how informed financial understanding and engagement with digital financial ‎platforms shape investment behaviour. The data is collected using a structured survey method ‎from 311 individual investors in Hyderabad, India. For the study, Structural ‎Equation Modelling (SEM) was employed to test relationships among the constructs. Unlike ‎prior studies that have often examined financial literacy or fintech exposure in isolation, this ‎paper uniquely integrates these two determinants with the mediating mechanism of ‎investment interest, providing a comprehensive model of investment decision-making in the ‎Indian context.‎

    The study contributes to the understanding of investment psychology within the Indian ‎context and offers insights for policy-makers and financial institutions aiming to foster ‎inclusive and informed investment ecosystems. It can be concluded that financial literacy ‎positively influences investment decisions by providing investors with the necessary ‎knowledge and skills to evaluate options critically and confidently‎.

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  • How to Cite

    Jaffer, D. S. . ., Zaheeruddin , D. M. ., N, D. R. ., Sultana , D. F. ., Babu , D. G. ., & Kumar , M. P. S. . (2025). Financial Literacy and Fintech Exposure As Determinants of Investment Decisions: The Mediating Role of Investment Interests – A Study of Individual Investors in Hyderabad, India. International Journal of Accounting and Economics Studies, 12(5), 542-549. https://doi.org/10.14419/87y3za88