Behavioral finance in fintech : biases & opinions

• Autor(a) principal: Francisco, Daniela Sofia Baeta e Silva
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29829
• topic: Adoption; Fintech; Behavioral finance; Bias; Opinion; Adoção; Finanças comportamentais; Preconceito; Opinião; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Fintech has become a worldwide and continuously growing phenomenon, yet fintech adoption has still not reached its full potential. The customer value proposition is now the core of development of any platform, and it is necessary to implement tools and measures that improve the experience. As such, the present thesis proposes the introduction of Behavioral Finance into modern fintechs as a provider of an enhanced customer engagement and increased value. The behavioral finance tool is described as an abstract algorithm, based on the concepts and methodologies of the subject, then tested via a two-part survey. The first part aims to understand the impact of two drivers behind the adoption of fintechs, namely behavioral biases and pre-conceived opinions. It is found that, on average, opinions have a positive impact on the likelihood of fintech adoption, whereas behavioral biases, despite present in the population, are not statistically significant in the engagement decision. In addition, past usage had a positive influence on the future usage, and this expected use had a positive influence in the future recommendation of the technology. The second part aims to study whether the introduction of the behavioral finance tool impacts the decision of adoption. It is found that, on average, future usage and future recommendation increase with the insertion of the algorithm, but the increase is not statistically significant. Furthermore, market perception of adoption is above 70%, indicating a possible opportunity.