Groupthink in Money Service Businesses: An In-Depth Exploration of its Forms, Effects, and Preventive Measures

This paper explores the occurrence of groupthink in Money Service Businesses (MSBs), emphasizing its key traits, root causes, and detrimental effects on organizations. Building on Irving Janis’s foundational theories and later academic advancements, it illustrates how excessive group cohesion, inadequate structural processes, and high-pressure situations can hinder critical thinking and discourage dissent. Through in-depth case studies of Binance and JP Morgan Chase, the paper illustrates the real-life implications of groupthink, including compliance and operational failures that lead to considerable financial and reputational harm. Additionally, the study reviews practical, evidence-driven strategies, such as fostering psychological safety, promoting diverse teams, implementing structured decision-making processes, and initiating leadership-driven cultural changes that can reduce groupthink and enhance institutional resilience. By highlighting the crucial role of leadership, especially in team settings, the paper stresses the necessity of nurturing open communication and critical evaluation in high-risk financial contexts. The research concludes by indicating areas for future exploration, such as the impact of digital communication, the influence of AI, and variations in culture on groupthink behaviours. This study adds to the expanding literature on organizational behaviour and conflict resolution by contextualizing groupthink within the regulatory and operational frameworks of MSBs.