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The Influence Of Behavioral Psychology On Financial Decisions Of Consumers In The Banking Sector

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  • NIOATA (CHIREAC) ROXANA-MIHAELA

    (UNIVERSITY OF CRAIOVA, EUGENIU CARADA DOCTORAL SCHOOL OF ECONOMIC SCIENCES, CRAIOVA, ROMANIA)

  • BARBACIORU IULIANA CARMEN

    (UNIVERSITY CONSTANTIN BRANCUSI OF TARGU JIU, TARGU JIU, ROMANIA)

  • FILIP ROBERT DORIN

    (UNIVERSITY OF CRAIOVA, DOCTORAL SCHOOL OF ECONOMIC SCIENCES EUGENIU CARADA, CRAIOVA, ROMANIA)

Abstract

The main objective of this paper is to analyze how the principles of behavioral psychology influence the financial choices of consumers in the banking sector. In this study, we aim to explore and highlight the impact of various cognitive biases, emotional affect and other psychological factors on financial decisions, particularly in the context of consumers' interaction with financial institutions. Through this analysis, we will pursue a deeper understanding of the decision-making process in relation to key banking products, bank loans, savings and investments, and how these may be shaped by non-rational psychological factors. At the same time, the paper aims to address a number of fundamental questions, such as "How will cognitive biases, the anchoring effect or risk aversion, influence our and consumers' financial choices?" or "To what extent will the application of nudge techniques in the banking sector influence or encourage financial choices to be more rational or beneficial for consumers?".

Suggested Citation

  • Nioata (Chireac) Roxana-Mihaela & Barbacioru Iuliana Carmen & Filip Robert Dorin, 2025. "The Influence Of Behavioral Psychology On Financial Decisions Of Consumers In The Banking Sector," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 142-152, February.
    • Handle: RePEc:cbu:jrnlec:y:2025:v:1:p:142-152
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    References listed on IDEAS

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    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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