Personal Finance Transformation in the Digital Era: The Impact of Financial Technology on People's Economic Behavior

The development of financial technology (fintech) has revolutionized the way people access, manage and make decisions in personal finance. The digitization of financial services not only offers convenience and efficiency, but also triggers significant changes in people's economic behavior, especially among the younger generation and urban groups. This study aims to systematically analyze how financial technology affects individuals' economic behavior in terms of consumption, investment, and financial planning. The method used is a systematic literature review of relevant scientific articles published between 2018 and 2025. The results show that financial technology has a positive impact in improving digital financial literacy, encouraging saving and investing behavior, and facilitating financial decision-making. However, there are also negative impacts such as increased impulsive consumption due to digital credit features, as well as technology adoption inequality between urban and rural communities. The implications of this study emphasize the importance of strengthening inclusive financial literacy and consumer protection as prerequisites for creating a safe and sustainable digital financial ecosystem.

1. Abdallah, W., Tfaily, F., & Harraf, A. (2025). The Impact Of Digital Financial Literacy On Financial Behavior: Customers’ Perspective. Competitiveness Review: An International Business Journal, 35(2), 347-370. Https://Doi.Org/10.1108/Cr-11-2023-0297
2. Agárdi, I., & Alt, M. A. (2024). Do Digital Natives Use Mobile Payment Differently Than Digital Immigrants? A Comparative Study Between Generation X And Z. Electronic Commerce Research, 24(3), 1463-1490. Https://Doi.Org/10.1007/S10660-022-09537-9
3. Agarwal, S., & Ann, T. C. (2024). Personal Finance Applications Of Fintech. In The Emerald Handbook Of Fintech: Reshaping Finance (Pp. 235-248). Emerald Publishing Limited. Https://Doi.Org/10.1108/978-1-83753-608-520241029
4. Al Rifai, M., & Albaker, Y. (2025). The Role Of Financial Technology In Enhancing Financial Inclusion: A Regulatory Perspective On Current Industry Trends. Corporate And Business Strategy Review, 6(1), 43-52. Https://Doi.Org/10.22495/Cbsrv6i1art4
5. Alaassar, A., Mention, A. L., & Aas, T. H. (2022). Ecosystem Dynamics: Exploring The Interplay Within Fintech Entrepreneurial Ecosystems. Small Business Economics, 58(4), 2157-2182. Https://Doi.Org/10.1007/S11187-021-00505-5
6. Alam, S. A., Akter, R., Khan, S. N., & Ahmad, S. (2025). Fintech: A New Financial Revolution. In Financial Landscape Transformation: Technological Disruptions (Pp. 301-316). Emerald Publishing Limited. Https://Doi.Org/10.1108/978-1-83753-750-120251017
7. Arsyad, A. W., Marlina, M., Maharani, E. K., & Hero, R. R. (2025). Pelatihan Pembukuan Digital Dengan Bukuwarung Untuk Peningkatan Keuangan Kelompok Usaha Di Kelurahan Baqa, Kalimantan Timur. Jmm (Jurnal Masyarakat Mandiri), 9(2), 1858-1867.
8. Barbu, C. M., Florea, D. L., Dabija, D. C., & Barbu, M. C. R. (2021). Customer Experience In Fintech. Journal Of Theoretical And Applied Electronic Commerce Research, 16(5), 1415-1433. Https://Doi.Org/10.3390/Jtaer16050080
9. Ben Belgacem, S., Khatoon, G., Bala, H., & Alzuman, A. (2024). The Role Of Financial Technology On The Nexus Between Demographic, Socio-Economic, And Psychological Factors, And The Financial Literacy Gap. Sage Open, 14(2), 21582440241255678. Https://Doi.Org/10.1177/21582440241255678
10. Chakravarty, I., Keserwani, H., & Singh, P. (2025, February). The Role Of Fintech In Empowering Women: A Catalyst For Financial Inclusion And Economic Growth. In 4 Th Annual International Research Conference And Doctoral Workshop (P. 91). Iim Lucknow.
11. Challoumis, C. (2024, October). The Evolution Of Financial Systems-Ai’s Role In Reshaping Money Management. In Xvi International Scientific Conference (Pp. 128-151). Https://Conference-W.Com/Wp-Content/Uploads/2024/10/Est.T-1718102024.Pdf#Page=129
12. Choudhury, R. R., Ferrer, M. A., & Roy, P. (2025). Evolution Of Fintech And Implications For Traditional Banking And Finance Sector. Shaping Cutting-Edge Technologies And Applications For Digital Banking And Financial Services, 147.
13. Ediagbonya, V., & Tioluwani, C. (2023). The Role Of Fintech In Driving Financial Inclusion In Developing And Emerging Markets: Issues, Challenges And Prospects. Technological Sustainability, 2(1), 100-119. Https://Doi.Org/10.1108/Techs-10-2021-0017
14. Farida, M. N., Soesatyo, Y., & Aji, T. S. (2021). Influence Of Financial Literacy And Use Of Financial Technology On Financial Satisfaction Through Financial Behavior. International Journal Of Education And Literacy Studies, 9(1), 86-95. Https://Doi.Org/10.7575/Aiac.Ijels.V.9n.1p.86
15. Firmansyah, E. A., Masri, M., Anshari, M., & Besar, M. H. A. (2022). Factors Affecting Fintech Adoption: A Systematic Literature Review. Fintech, 2(1), 21-33. Https://Doi.Org/10.3390/Fintech2010002
16. Hidayati, L. N. (2025). Social Impact Of Digital Payment Technology Adoption In Developing Countries: A Financial Literacy Based Qualitative Study. Start-Up And Financial Technology, 1(1), 1-14. Https://Doi.Org/10.70764/Gdpu-Sft.2025.1(1)-01
17. Hossain, M. N., Hidayat-Ur-Rehman, I., Bhuiyan, A. B., & Salleh, H. M. (2025). Evaluating The Influence Of It Governance, Fintech Adoption, And Financial Literacy On Sustainable Performance. Studies In Economics And Finance. Https://Doi.Org/10.1108/Sef-10-2024-0672
18. Issac, A., & Seranmadevi, R. (2025). Revolutionizing Financial Literacy Through Exploring Finfluencers' Intentions In Chatbot-Driven Financial Information Dissemination. In Creating Ai Synergy Through Business Technology Transformation (Pp. 159-188). Igi Global.
19. Karimova, I. Y. K. (2025). The Role Of Fintech In Driving Economic Growth: Transforming Financial Services And Enhancing Market Efficiency. Oriental Renaissance: Innovative, Educational, Natural And Social Sciences, 5(1), 193-200.
20. Kostyrko, L., Solomatina, T., Hudyma, O., Zhuravlova, I., & Hurina, O. (2025). Financial Management In Small Business: Case Studies. Pacific Business Review International, 17(9). Https://Www.Proquest.Com/Openview/B39bc8510b4c1cc82509a21293f7c370/1?Pq-Origsite=Gscholar&Cbl=7065076
21. Kou, G., & Lu, Y. (2025). Fintech: A Literature Review Of Emerging Financial Technologies And Applications. Financial Innovation, 11(1), 1. Https://Doi.Org/10.1186/S40854-024-00668-6
22. Kovács, L., & Terták, E. (2024). Thematic Review Of Financial Education And Financial Literacy In The Digital Age. Acta Oeconomica, 74(4), 483-506. Https://Doi.Org/10.1556/032.2024.00023
23. Li, Z., Lunku, H. S., Yang, S., & Ngoma, J. B. (2025). Closing The Vicious Poverty Gap: The Role Of Digital Technology And Financial Progress In Mitigating Income Inequality In Sub-Saharan Africa. International Journal Of Economic Policy Studies, 1-34. Https://Doi.Org/10.1007/S42495-025-00153-7
24. Miah, M. (2023). The Role Of Fintech In Bridging The Divide For Economic Empowerment. Economics And Business, 37, 206-219.
25. Molosiwa, T. (2025). The Impact Of Digital Transformation On Botswana’s Banking Strategies. Open Journal Of Business And Management, 13(3), 1519-1551. Https://Doi.Org/10.4236/Ojbm.2025.133079
26. Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The Impact Of The Fintech Revolution On The Future Of Banking: Opportunities And Risks. International Review Of Financial Analysis, 81, 102103. Https://Doi.Org/10.1016/J.Irfa.2022.102103
27. Nam, Y., & Lee, S. T. (2023). Behind The Growth Of Fintech In South Korea: Digital Divide In The Use Of Digital Financial Services. Telematics And Informatics, 81, 101995. Https://Doi.Org/10.1016/J.Tele.2023.101995
28. Peneder, M. (2022). Digitization And The Evolution Of Money As A Social Technology Of Account. Journal Of Evolutionary Economics, 32(1), 175-203. Https://Doi.Org/10.1007/S00191-021-00729-4
29. Pentury, F. (2023). The Role Of Knowledge And Penetration Of Fintech Services In Improving Msmes Of Fishermen And Marine Farmers In Remote Small Islands Region. Jurnal Manajemen Teori Dan Terapan, 16(1). Https://Doi.Org/10.20473/Jmtt.V16i1.43743
30. Putrevu, J., & Mertzanis, C. (2024). The Adoption Of Digital Payments In Emerging Economies: Challenges And Policy Responses. Digital Policy, Regulation And Governance, 26(5), 476-500. Https://Doi.Org/10.1108/Dprg-06-2023-0077
31. Rahayu, R., Ali, S., Aulia, A., & Hidayah, R. (2022). The Current Digital Financial Literacy And Financial Behavior In Indonesian Millennial Generation. Journal Of Accounting And Investment, 23(1), 78-94. Https://Journal.Umy.Ac.Id/Index.Php/Ai/Article/View/13205
32. Respati, D. K., Widyastuti, U., Nuryati, T., Musyaffi, A. M., Handayani, B. D., & Ali, N. R. (2023). How Do Students’ Digital Financial Literacy And Financial Confidence Influence Their Financial Behavior And Financial Well-Being?. Nurture, 17(2), 40-50. Https://Doi.Org/10.55951/Nurture.V17i2.154
33. Robertsone, G., & Lapiņa, I. (2023). Digital Transformation As A Catalyst For Sustainability And Open Innovation. Journal Of Open Innovation: Technology, Market, And Complexity, 9(1), 100017. Https://Doi.Org/10.1016/J.Joitmc.2023.100017
34. Salleh, M. N. M., Alwi, S., Rosnan, H., & Wahab, N. A. (2025). Exploring The Impact Of Fintech On Sustainable Development In Malaysia: An Interpretative Phenomenological Analysis. Discover Sustainability, 6(1), 1-16. Https://Doi.Org/10.1007/S43621-025-01205-W
35. Simahatie, M., Aswadi, K., & Chadafi, M. F. (2024, July). Study Of Accelerating Technology, Consumerism And Credit Risk Issues. In Proceeding Medan International Conference On Economic And Business (Vol. 2, Pp. 1121-1130). Https://Doi.Org/10.30596/Miceb.V2i0.745
36. Soedarwati, E. (2024). The Influence Of Financial Technology On Changes In Consumer Behavior. Journal Of Management, 3(2), 715-729. Https://Myjournal.Or.Id/Index.Php/Jom/Article/View/279
37. Soviatri, M., & Rismawati, R. (2024). The Significant Role Of Fintech In Empowering Students In The Digital Era: An Analysis Within The Context Of Digital Financial Transformation. The Significant Role Of Fintech In Empowering Students In The Digital Era: An Analysis Within The Context Of Digital Financial Transformation, 15(01), 01-09. Https://Doi.Org/10.21009/Jrmsi.015.1.01
38. Yadav, O. P., Teotia, R., & Baliyan, R. (2025). Fintech And Data Science: Shaping The Future Of The Digital Economy. In Synergy Of Ai And Fintech In The Digital Gig Economy (Pp. 332-349). Crc Press.
39. Yoganandham, G. (2025). Mastering Economic And Financial Sources With Reference To Budgeting, Savings, Early Investing, Debt Management And The Power Of Financial Planning-A Comprehensive Analysis. Degres Journal, 10(1), 19-33.
40. Zaw, K. K. T. (2024). Personal Financial Planning Towards Family Financial Investment Of Employee At Atom Myanmar Co., Ltd (Khin Khin Tra Zaw, 2024) (Doctoral Dissertation, Meral Portal).
41. Zeidy, I. A. (2022). The Role Of Financial Technology (Fintech) In Changing Financial Industry And Increasing Efficiency In The Economy. Comesa Monetary Institute, 1-20. Https://Www.Comesa.Int/Wp-Content/Uploads/2022/05/The-Role-Of-Financial-Technology.Pdf.