Abstract

Purpose: This study examines the impact of multi-channel distribution strategies on investor portfolio allocation within the context of digital transformation in the financial sector. As financial institutions increasingly combine traditional and digital channels, understanding how integration and efficiency affect investor behavior becomes crucial. Research design, data, and methodology: A quantitative survey of 250 active retail investors in the Indonesian capital market was conducted using a structured questionnaire and analyzed through Structural Equation Modeling–Partial Least Squares (SEM-PLS). The model includes channel integration and distribution efficiency as independent variables, investor trust as a mediating variable, and portfolio allocation as the dependent variable. Results: The results reveal that channel integration and distribution efficiency significantly enhance investor trust and portfolio allocation. Moreover, investor trust partially mediates this relationship, highlighting its essential role in fostering diversification and long-term investment commitment. Conclusions: The study contributes to distribution science by extending channel management theory to the financial domain, emphasizing how multi-channel distribution enhances efficiency and accessibility in the financial supply chain. Practically, the findings offer insights for financial institutions and fintech platforms to strengthen digital integration, optimize investor experience, and promote inclusive investment participation in emerging markets.