Financial Planning, Digital Financial Literacy, and Financial Management Capability: The Moderating Role Of Digital Financial Service Adoption

Abstract

Retired bank customers face unique financial vulnerabilities, including fixed incomes, rising healthcare costs, and the need for long-term financial security, yet remain underrepresented in digital financial literacy research. This study examines the impact of financial planning and digital financial literacy on financial management capability among retired customers of Bank Woori Saudara in Kuningan Regency, Indonesia, with digital financial service adoption as a moderating variable. Using a quantitative-associative survey method, 302 retired bank customers were selected through proportional random sampling. Data were collected using a validated 1–7 interval scale questionnaire and analyzed using Moderating Regression Analysis (MRA). Results show that financial planning (β=0.428), digital financial literacy (β=0.451), and digital financial service adoption (β=0.318) each positively and significantly improve financial management capability. Critically, digital financial service adoption strengthened both the financial planning–capability relationship (interaction β=0.118; p=0.003) and the digital literacy–capability relationship (interaction β=0.142; p=0.001), with the full model explaining 74.1% of variance (R²=0.741). These findings confirm that digital financial service adoption serves as a practical bridge between financial knowledge and effective financial behavior. For practitioners, the results underscore the importance of designing user-friendly digital banking services and targeted financial education programs tailored to retired customers’ specific needs and life-stage challenges.