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The Use of Alternative Financial Services (AFS): A Social Cognitive Approach Cover

The Use of Alternative Financial Services (AFS): A Social Cognitive Approach

Open Access
|Jan 2026

Abstract

Grounded in Social Cognitive Theory (SCT), this study examines how the interplay among cognitive, behavioral, and environmental factors influences an individual’s decision to use AFS. Analyzing the cognitive construct, the current study concludes that while subjective financial literacy has a positive association with AFS use, objective financial literacy has a negative association with AFS use. When examining the environmental construct, financial hardship is positively associated with AFS use, whereas the behavioral construct, responsible credit card behavior, has a negative association with AFS use. Lastly, this study provides evidence that financial hardship moderates the relationship between financial literacy and AFS use.

DOI: https://doi.org/10.2478/fprj-2026-0002 | Journal eISSN: 2206-1355 | Journal ISSN: 2206-1347
Language: English
Published on: Jan 28, 2026
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2026 Ichchha Pandey, Olamide Olajide, Sabina Pandey, published by Financial Advice Association of Australia
This work is licensed under the Creative Commons Attribution 4.0 License.