Digitalization of the banking sector as a factor of change in behavioral models of financial decision-making
DOI:
https://doi.org/10.26565/2786-4995-2026-3-02Keywords:
cognitive biases, behavioral design, nudging, choice architecture, dark patterns, fintech, financial inclusion, behavioral digital divide, algorithmic personalizationAbstract
The article examines behavioral models of financial decision-making by economic agents in the context of the digital transformation of the banking sector, which made it possible to identify key cognitive biases that become activated in the digital banking environment, to develop a four-level conceptual model of the interaction between digital technologies and behavioral factors, and to substantiate approaches to regulating the behavioral risks of digital banking.
Introduction. The digitalization of banking encompasses a broad range of technological innovations - mobile banking, artificial intelligence algorithms, open banking, BNPL services, and decentralized finance - which fundamentally transform the environment of interaction between financial institutions and their clients.
Problem statement. Despite the rapid development of digital banking technologies, the question of how the digital environment transforms the cognitive mechanisms of financial decision-making remains insufficiently studied. Classical economic theory postulates the rationality of the economic agent, whereas real-world practice demonstrates systematic deviations from rational behavior that acquire new forms and scales in the digital context.
Unresolved issues. The scholarly literature lacks comprehensive models that integrate the technological and behavioral dimensions of banking digitalization while accounting for feedback loops between client behavior and algorithmic systems, as well as the unevenness of behavioral consequences across different socio-demographic groups. A separate gap concerns the absence of systematic approaches to regulating the behavioral risks of digital banking under the conditions of the Ukrainian market.
Purpose of the article. To investigate the mechanisms through which the digitalization of the banking sector influences behavioral models of financial decision-making, to identify the key behavioral effects of the digital banking environment, and to develop conceptual approaches to regulating the corresponding risks.
Main material. Based on the methods of theoretical analysis, comparative analysis, and conceptual modeling, five key cognitive biases of the digital banking environment are systematized: the framing effect, transaction painlessness, overconfidence, the recommendation algorithm effect, and digital procrastination. A four-level conceptual model of the interaction between digital banking technologies and behavioral factors is developed, encompassing the technological level, the behavioral mediator level, the behavioral response level, and the regulatory context. The model accounts for the mechanism of "behavioral reinforcement loops" and the concept of the "behavioral digital divide" between different user groups.
Conclusions. The ambivalent nature of digitalization's impact on financial behavior is established: the digital environment simultaneously generates proximal effects - automation of savings, enhanced financial literacy, effective nudging - and dysfunctional effects associated with increased impulsivity, the transaction painlessness effect, and manipulative dark patterns. The practical significance of the results lies in their potential use by banking institutions in designing digital products, by regulatory authorities in developing behavioral oversight standards, and within the financial education system to strengthen the behavioral resilience of financial service consumers.
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