BEHAVIORAL FINANCE IN THE DIGITAL AGE: HOW FINANCIAL APPS AFFECT OUR SAVING AND CONSUMPTION DECISION

Abstract

Digital financial apps, such as mobile banking and budgeting platforms, as well as robo-advisors and automated savings tools, have completely changed the way people manage their personal finances. Behavioral finance studies how psychological factors influence financial decisions. This requires an analysis of how technology influences investment, saving and consumption behaviors. Through a theoretical and exploratory approach based on literature and secondary sources, this paper aims to examine how financial applications influence people's decisions, reduce cognitive errors, and sometimes amplify irrational or impulsive behaviors. Digital nudging, decision architecture, fear of loss, financial procrastination and the illusion of control are all discussed in the context of digital interfaces. The article questions both the benefits of these tools - such as automating savings or increasing financial awareness - and the risks associated with gamifying financial decisions or overestimating the ability to control. The paper presents concrete examples of applications using elements of behavioral design, such as Revolut, Qapital, Mint or Robinhood. We consider that the article contributes to the understanding of how digital design can be used to incentivize sound financial behaviors, but also to the debate on the ethics of influencing economic decisions through technology.