DI-FI AND PSYCHOLOGICAL BIASES: AN EXPLORATION
DOI:
https://doi.org/10.61841/cibg.v32i1.2951Keywords:
fintech, cognitive bias, behavioral finance, financial decision makingAbstract
Rapid growth of financial technology (fintech) has changed the financial landscape by providing unmatched speed, efficiency and deepening financial inclusion. Still, the existing narrative has many a times assumed that users are making perfectly rational choices, ignoring the element of how these platforms interact with their own biases and cognition towards taking such financial decisions. Addressing this gap, this paper is presenting a purely theoretical framework finding how such digital environments change biases while making financing decisions. This paper conceptually examined how the features of such digital platforms such as immediate transactions, smoothness, and the abstraction of money acting as a catalyst that can influence errors, biases, and overconfidence. Contrasting to this, this paper also shows the two facets of these digital platforms, proposing that such platforms have the capacity to control such errors and biases if it is intentionally designed as such. Ultimately by positioning these biases as the mediator between technology and decision making, this work posits fintech not just as a delivering mechanism, but also as a behavior shaping system.
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