The Effect of Financial Literacy on the Investment Decisions of Investment Applications Users

Abstract

This research was conducted with the aim of knowing the effect of financial behavior, financial attitude, and financial literacy on the decisions of investment application (with robo advisor technology) users. The total population in this study was 270.661 people, and a total of 471 respondents filled out the questionnaires online. The validity and reliability tests were also carried out to test whether a research instrument can be used as a variable measuring tool in the study. The results of this study indicate that financial behavior has a positive effect on the investment decisions of the investment application users. Financial attitudes have a significant positive effect, and financial literacy also have a significant effect on investment decision making. The findings show that long-term intentional efforts are essential for increasing financial literacy. Therefore, it is important to evaluate people's decision-making processes to enable them to investigate whether they display positive behavior and attitude financially, which can result in increased resilience in times of crisis, in encouraging greater financial well-being and bigger financial satisfaction.