CIMAHI – Online loan adoption among urban Generation Z is driven more strongly by consumptive lifestyle demands than by financial literacy levels. A 2026 scientific study conducted by Tiara Fani Anti and Novi Susyani from Universitas Jenderal Achmad Yani examined the effects of financial literacy and lifestyle on online loan decisions among Generation Z in Cimahi City, while evaluating the moderating role of locus of control. These findings provide critical insights for financial regulators and educators, emphasizing that youth financial education must address consumption behavior management alongside theoretical knowledge.
The rapid expansion of financial technology applications has simplified access to digital credit for young consumers. However, surging online lending volumes in West Java have generated significant socio-economic concerns, ranging from default risks to debt distress triggered by impulsive spending. In Cimahi City, the high concentration of residents aged 18 to 25 makes young people primary targets for app-based credit services. This environment highlights the urgent need for empirical research to determine the primary behavioral drivers behind digital borrowing decisions.
To investigate these dynamics, the researchers executed a quantitative study integrating descriptive and confirmatory techniques. Using a non-probability purposive sampling approach, data were gathered from 170 Generation Z respondents in Cimahi City who had used online loan applications within the past two years. Primary survey data were evaluated using multiple linear regression and Moderated Regression Analysis (MRA) to test direct effects and moderating relationships.
The statistical results demonstrate that financial literacy exerts a significant negative effect on online loan decisions, indicating that higher financial knowledge reduces the likelihood of digital borrowing. Conversely, lifestyle exhibits a highly significant positive effect, proving to be the primary driver of online loan usage decisions. The positive impact of lifestyle was found to be substantially stronger than the restraining effect of financial literacy.
Crucially, the study revealed that locus of control does not significantly moderate the relationship between financial literacy or lifestyle and online loan decisions. This indicates that psychological control beliefs neither strengthen nor weaken the influence of financial literacy or consumptive lifestyle on digital borrowing among Generation Z in Cimahi City. Seamless digital application access and social media trends exercise a more decisive influence on borrowing actions than internal psychological control.
These findings carry important implications for the Financial Services Authority (OJK), educational institutions, and public policy makers. Financial literacy programs targeted at young adults must evolve beyond basic financial concepts to include practical guidance on digital lifestyle management and impulsive buying control. Regulatory frameworks should focus on strengthening responsible lending standards and consumer protection mechanisms to safeguard young citizens from unsustainable debt accumulation.
This study was authored by Tiara Fani Anti and Novi Susyani from the Management Study Program, Faculty of Economics and Business, Universitas Jenderal Achmad Yani, Cimahi, Indonesia.
Author Profile:
Tiara Fani Anti, Novi Susyani (Universitas Jenderal Achmad Yani)
Research Source:
Article Title: The Influence of Financial Literacy and Lifestyle on the Decision to Use Online Loans with Locus of Control as a Moderating Variable among Generation Z in Cimahi City
Journal: International Journal of Scientific Multidisciplinary Research (IJSMR), Vol. 4, No. 9, 2026, pp. 2161-2178
DOI: https://doi.org/10.55927/ijsmr.v4i9.158
Journal Link: https://journalijsmr.my.id/index.php/ijsmr
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