The Moderating effect of Digital and Financial Literacy on the Digital Financial Services and Financial Behavior of MSMEs

(Pages 505-515)

Imelda T. Angeles*
Research Center for Social Sciences and Education, College of Commerce and Business Administration, University of Santo Tomas, Manila, Philippines.


The rapid advancement of technology has become an integral part of society. Improved financial technology accelerates and plays a critical role in MSMEs' savings, financing, and investment. The efficient flow of funds from these sectors is vital to the growth and development of the economy. However, despite their benefits, digital finance and financial inclusion have not sufficiently permeated large segments of the population, indicating a gap between the availability, accessibility, and utilization of finance. Despite the benefits of digital financial services, there is a large disparity in one area that is gaining momentum, particularly in financial inclusion and digital finance. These barriers can impede an individual’s ability to save, gain access to capital, and invest. The purpose of the study is to determine the extent to which digital financial services impact the savings, financing, and investing behavior of micro, small, and medium-sized enterprise (MSMEs) owners. The study explored a causal research design with moderation analysis to determine the impact of digital financial services and digital and financial literacy on the savings, borrowing, and investing behavior of MSME owners in the Philippines. The result of the study revealed that digital financial services do not stimulate savings, borrowing, and investing of the owners, however, digital and financial literacy significantly influence the financial behavior of the owners. The result of the study adds additional evidence to the existing literature highlighting the role of digital and financial literacy in enhancing the impact of digital financial services on the financial behavior of MSME owners.


Digital Financial Services, Financial Technology, MSMEs, Digital Literacy, Financial Literacy.

JEL Codes:

D9-D91; O1-O16; O5-O53

How to Cite:

Imelda T. Angeles. The Moderating effect of Digital and Financial Literacy on the Digital Financial Services and Financial Behavior of MSMEs. [ref]: vol.20.2022. available at:

Licensee REF Press
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