The Impact of Financial Literacy and Financial Behavior on Financial Resilience through Digitalization

This study aims to analyze the effect of financial literacy and financial behavior on financial resilience with digitalization as a mediating variable. The study was conducted among MSME operators in Makassar City using a quantitative approach with an explanatory research design. Purposive sampling was employed with a total of 200 respondents. Data were collected through Likert-scale questionnaires and analyzed using Partial Least Squares-based Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results indicate that financial literacy has no significant direct effect on financial resilience, but exerts a positive and significant effect on digitalization. Financial behavior is proven to have a positive and significant effect on both financial resilience and digitalization. Digitalization emerged as the variable with the largest direct effect on financial resilience. Mediation analysis reveals that digitalization fully mediates the effect of financial literacy on financial resilience and partially mediates the effect of financial behavior on financial resilience. The R-square value of 0.715 indicates strong explanatory power of the model. This study confirms that enhancing financial resilience must be pursued holistically through strengthening financial literacy, fostering positive financial behavior, and accelerating the adoption of digital financial technology in a synergistic manner.