Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania

This study investigates the relationship between the adoption of financial technology (Fintech), financial literacy, and participation in the stock market in Tanzania, employing a thorough analysis of primary data collected through an online self-reported survey. By implementing purposive sampling...

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Main Authors: Abraham Charles Nathanael, Magwana Ibrahim Ngollo
Format: Article
Language:English
Published: Universitas Islam Indonesia, Faculty of Business and Economics, Department of Management 2025-08-01
Series:Asian Management and Business Review
Subjects:
Online Access:https://103.220.113.119/AMBR/article/view/39663
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author Abraham Charles Nathanael
Magwana Ibrahim Ngollo
author_facet Abraham Charles Nathanael
Magwana Ibrahim Ngollo
author_sort Abraham Charles Nathanael
collection DOAJ
description This study investigates the relationship between the adoption of financial technology (Fintech), financial literacy, and participation in the stock market in Tanzania, employing a thorough analysis of primary data collected through an online self-reported survey. By implementing purposive sampling techniques, this research executed a series of diagnostic evaluations, encompassing tests for multicollinearity, normality, and heteroskedasticity, to substantiate the integrity of the regression model utilized. The results indicate that the utilization of fintech substantially enhances involvement in stock market activities, thereby corroborating the hypothesis that fintech acts as a facilitator for individual participation in trading activities. Furthermore, the study emphasizes the essential function of financial literacy, suggesting that elevated levels of financial knowledge are positively correlated with an increase in stock market participation. Notably, the effect of fintech on stock market engagement decreased from a coefficient of β = 0.41 to β = 0.19 upon accounting for financial literacy. However, the association persisted as statistically significant (p = 0.002), thereby demonstrating a condition of partial mediation. These findings highlight the fundamental significance of financial literacy as a crucial determinant in fostering active involvement in financial markets. In conclusion, this research provides insightful contributions to the understanding of the interrelations among fintech, financial literacy, and investment behaviors in Tanzania, presenting implications for the formulation of policies, enhancement of financial education, and improvement of market accessibility.
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spelling doaj-art-2586f1f5ece64a9784e358f4aa4834362025-08-20T04:02:27ZengUniversitas Islam Indonesia, Faculty of Business and Economics, Department of ManagementAsian Management and Business Review2775-202X2025-08-015210.20885/AMBR.vol5.iss2.art9Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, TanzaniaAbraham Charles Nathanael0Magwana Ibrahim Ngollo1Department of Accounting and Finance, Tanzania Institute of Accountancy, P.O Box 526, Kigoma, TanzaniaDepartment of Accountancy, College of Business Education Mbeya campus, P.O Box 3810, Mbeya, Tanzania This study investigates the relationship between the adoption of financial technology (Fintech), financial literacy, and participation in the stock market in Tanzania, employing a thorough analysis of primary data collected through an online self-reported survey. By implementing purposive sampling techniques, this research executed a series of diagnostic evaluations, encompassing tests for multicollinearity, normality, and heteroskedasticity, to substantiate the integrity of the regression model utilized. The results indicate that the utilization of fintech substantially enhances involvement in stock market activities, thereby corroborating the hypothesis that fintech acts as a facilitator for individual participation in trading activities. Furthermore, the study emphasizes the essential function of financial literacy, suggesting that elevated levels of financial knowledge are positively correlated with an increase in stock market participation. Notably, the effect of fintech on stock market engagement decreased from a coefficient of β = 0.41 to β = 0.19 upon accounting for financial literacy. However, the association persisted as statistically significant (p = 0.002), thereby demonstrating a condition of partial mediation. These findings highlight the fundamental significance of financial literacy as a crucial determinant in fostering active involvement in financial markets. In conclusion, this research provides insightful contributions to the understanding of the interrelations among fintech, financial literacy, and investment behaviors in Tanzania, presenting implications for the formulation of policies, enhancement of financial education, and improvement of market accessibility. https://103.220.113.119/AMBR/article/view/39663FintechFinancial literacyStock market participation
spellingShingle Abraham Charles Nathanael
Magwana Ibrahim Ngollo
Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
Asian Management and Business Review
Fintech
Financial literacy
Stock market participation
title Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
title_full Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
title_fullStr Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
title_full_unstemmed Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
title_short Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania
title_sort exploring fintech financial literacy and stock market participants nexus in dar es salaam stock exchange tanzania
topic Fintech
Financial literacy
Stock market participation
url https://103.220.113.119/AMBR/article/view/39663
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AT magwanaibrahimngollo exploringfintechfinancialliteracyandstockmarketparticipantsnexusindaressalaamstockexchangetanzania