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IJAES International Journal of Accounting and Economics Studies E-ISSN 2309-4508

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 and Affiliations

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

About this article

DOI
https://doi.org/10.14419/87y3za88
Received
07-07-2025
Accepted
06-09-2025
Published
13-09-2025
Views
1550
Downloads
607
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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.

Keywords

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

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How to Cite

Jaffer, S., Zaheeruddin, M., N, R., Sultana, F., Babu, G., & Kumar, 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

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