Lived Experiences of Financial Risk and Uncertainty Among Novice Investors in Fintech Contexts
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Abstract
The rapid growth of financial technology (fintech) has significantly transformed personal investment practices, especially among novice investors who engage with digital platforms without formal financial education. While fintech platforms offer greater accessibility, there is limited understanding of how novice users experience and interpret financial risk and uncertainty within these digital contexts. This study seeks to fill this gap by exploring the question: How do novice investors perceive and make sense of financial risk while using fintech applications? An interpretative phenomenological analysis (IPA) was conducted to examine the lived experiences of eight novice investors in Indonesia. Data were gathered through semi-structured interviews, focusing on participants’ emotional, cognitive, and behavioral responses to fintech-based investing. The IPA method facilitated the identification of emergent experiential themes. Three major themes emerged: (1) emotional volatility in decision-making, (2) cognitive overload due to constant digital stimuli, and (3) evolving trust in algorithm-driven systems. These themes reveal the complex interplay between emotional states, perceived uncertainty, and reliance on technology in shaping investment behaviors. The findings underscore the importance of considering emotional and interpretive dimensions in novice investor experiences. This study contributes to a more holistic understanding of investor behavior, complementing and extending traditional behavioral finance models. It also highlights the need for fintech developers and financial educators to prioritize emotional literacy and user-centered design to better support inexperienced investors.
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