Behavior Science Led Technology for Financial Wellness: A Critical Review

Abstract

Individuals' general well-being is said to be strongly influenced by their financial situation. To be financially well-off, one must have a sense of control over one's finances and the ability to make informed decisions about one's financial future. This directly affects one's general quality of life, including one's productivity at work, the quality of one's relationships, and one's health. Additionally, achieving financial health can be a challenge for many people because the paths to achieving it aren't always clear and can be daunting to many. The epidemic in India has made financial security a top stressor for the majority of people, according to recent reports in the country. Consequently, a fundamental issue for the country is a lack of financial stability. Across the globe, people are concerned about their financial well-being. Many behavioral biases and impediments to financial decision-making have been discovered in the study of behavioural finance as a means of alleviating this problem. Lack of self-control, inability to make sound financial decisions, or a failure to recognise one's own financial requirements and the correct items to purchase are just a few examples. We propose a comprehensive and hyper-personalized way to impact financial behaviour that blends technology and behavioural science. Financial well-being may be improved with this strategy by using behavioral levers and nudges. This strategy works because it combines two distinct characteristics: (1) an appealing front-end user interface and (2) Analytical and consumer insights are used to provide clients with valuable suggestions. With the help of a financial counselor, you can ensure that your long-term financial goals are met. In order to reach as many Indians as possible with financial inclusion, we need to broaden the definition of financial health to include everyone in the country.