Financial And Digital Literacy, Community Behavior, And Illegal Online Loan Prevention in Bandar Lampung

Abstract

This study examines whether financial literacy, digital literacy, and community behavior are associated with preventing illegal online loans among young adult residents of Bandar Lampung. A cross-sectional survey collected 100 usable questionnaires from residents aged 17–35 years through purposive, non-probability recruitment. Reflective constructs were measured on a five-point Likert scale and estimated using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. Financial (β=0.394, t=4.067, p<0.001) and digital (β=0.293, t=3.086, p=0.001) literacies and community behavior (β=0.306, t=2.601, p=0.005) were positively associated with self-reported prevention. The model explained 96.0% of outcome variance. Reliability and convergent validity statistics exceeded conventional thresholds after one digital-literacy item was removed. Preventive orientation is strongest when financial judgment and digital verification skills are accompanied by cautious borrowing norms. Cross-sectional self-report data, social-media recruitment, a small age-restricted sample, and substantial indicator overlap limit causal and population-level interpretations. HTMT, collinearity, predictive relevance, and common method diagnostics were unavailable. This study integrates financial capability, digital verification, and behavioral safeguards into a city-level illegal lending prevention model.

Keywords

Community Behavior Digital Literacy Financial Literacy Illegal Online Lending PLS-SEM