Title: How FinTech Adoption Translates into Financial Well-Being: The Mediating Role of Embedded Finance and the Moderating Effect of Digital Capability
Authors: Chau Minh Tran, Duyen Luong Gia Ky, Ha Nguyen Manh
Volume: 10
Issue: 4
Pages: 61-68
Publication Date: 2026/04/28
Abstract:
The fast-growing reach of financial technology (FinTech) across ASEAN has altered the way that financial services can be accessed. However, the effect of this technology on customers' financial well-being is still unknown. While much of the existing literature associates higher FinTech adoption with better financial outcomes, it offers limited insight into the mechanisms through which these outcomes arise. This study aims to explain the conditions surrounding FinTech adoption that determine the positive financial impact of FinTech by treating embedded finance as a behavioral impact mechanism and digital capability as a boundary condition. Data were collected from 280 users of digital platforms across diverse ASEAN economies, and structural equation modeling was employed to assess the proposed moderated mediation model involving FinTech adoption, embedded finance usage, digital capability, and financial well-being. The findings demonstrate that FinTech adoption influences financial well-being indirectly by increasing usage of embedded financial services. Additionally, there is a considerable positive correlation between financial well-being and usage of embedded financial services for users possessing a higher digital capability. The benefits of digital financial services are not experienced uniformly across users. This study, focusing on the inconsistency between FinTech and financial well-being, contributes to the literature explaining how, and in what ways, the digital finance ecosystem, in platform economies, might be developed sustainably.