Year: 2026
Type: review
Study design: Systematic Review
Abstract: Structured Abstract: Purpose: The aim of this study is to undertake the systematic review of academic paper on digital and financial technology to describe the impact of various digital and financial technologies on the behaviour of retail investor under several cognitive and influence their investment decision-making. The study includes internet, social media and social trading platform as a advanced communication channel and social trading application and a financial technology facilitating in execution of trading decision. Study design/methodology/approach: A systematic literature review has been conducted of 94 academic work which includes published journals, conference proceedings, working papers and published books with the systematic search of academic works from several electronic databases to identify relevant studies even though there was research work released between 2000 and 2023. The publication of notable works began in 2014. The search terms included "technological advancements," "internet," "social media," "social trading applications," "trading applications”, "retail investors," "investor behaviour," and "investment decision-making and fintech. Findings: The paper suggest that the digital and financial technological variable collectively impact investor in not only in providing with financial information but also in decision making and trade execution. The increased accessibility to information and trading avenues has led to challenges, such as information overload and the potential for overconfidence in decision-making which results in impulsive and frequent trading affecting their return. Moreover, digital communication technology such as social media, one of the essential sources of information and opinion, also is to be credited with impacting investor sentiment and behaviour leading to herd behaviour and suboptimal return. Research limitations/implications: This paper reports that investors’ behaviour post digital and financial technology adoption have high potential for further study by various stakeholders in the field of behavioural finance from academia, practitioners to regulators. Practical implications: The paper summarizes the lessons which is of importance for the retail investor, implies that retail investor should be careful in relying too much on the digital technology in terms of fetching financial information and trade execution especially when they are not financial experts. Social implications: Under this study, investors can recognize various cognitive biases that can influence their trading behavior and impact their returns. Originality/value: The paper add value in the understanding of digital and financial technological evolution and its impact, post-adoption, on the retail investors’ behaviour
DOI: 10.18848/fccber41
Authors: Saba Fatima, Dr. Syed Afzal Ahmad
Institution: Integral University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7220699492
FWCI:
Cites:
Cited by:
Related to: