Financial Distress in Muslim Students: Determinants, The Role of Fintech, and Implications for Financial and Personal Well-Being

This study aims to examine the influence of religiosity, debt, financial optimism, financial literacy, and fintech on Financial Distress among Muslim university students in Greater Bandung, as well as the impact of Financial Distress on financial sustainability, academic performance, productivity, mental health, and quality of life.The research employed a quantitative approach using a questionnaire-based survey and was analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method.The results show that religiosity has a significant negative effect on Financial Distress, while debt has no significant effect.Conversely, financial optimism and financial literacy have a significant positive effect on Financial Distress.Fintech was also found to have a positive effect on both financial literacy and Financial Distress.Furthermore, Financial Distress significantly and positively affects all measured aspects of student well-being: financial sustainability, academic performance, productivity, mental health, and quality of life.These findings suggest that Financial Distress does not always lead to negative outcomes; in certain contexts, it can trigger adaptive responses among students.In addition, fintech plays a dual role as both a financial education tool and a potential source of financial pressure.This study offers valuable insights into the financial dynamics of students from the perspectives of religiosity, literacy, and modern financial behavior.