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Original scientific paper

https://doi.org/10.1080/1331677X.2020.1820362

Improving financial capability: the mediating role of financial behaviour

Gentjan Çera
Khurram Ajaz Khan
Ahmad Mlouk
Tomáš Brabenec


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Abstract

This paper investigates the collective impact of financial literacy
and inclusion on individuals’ financial capability focusing on the
mediating role of financial behaviour. The research is conducted on
an individual-level survey. The relationships were examined by
using PLS-SEM. Financial capability can be improved by increasing
individuals’ financial knowledge, financial behaviour and promoting
their inclusion in financial services. Furthermore, the indirect effect
of financial knowledge and attitude on financial capability is found
to be significant, highlighting the importance of financial behaviour. The results assist policymakers and industry leaders in understanding the most influential factors on financial capability in the
context of a post-communist transition country. This enables them
to design policies and services aimed at equipping citizens with
knowledge and skills to make best use of their financial resources.

Keywords

Financial capability; financial attitude; financial knowledge; financial behaviour; financial inclusion; transition country

Hrčak ID:

301227

URI

https://hrcak.srce.hr/301227

Publication date:

31.12.2021.

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