DIGITAL FINANCIAL INFORMATION OVERLOAD AND REINFORCEMENT OF BEHAVIOURAL BIASES AMONG YOUNG INVESTORS: THE ROLE OF FINANCIAL LITERACY
Keywords:
Digital financial information overload, behavioural biases, financial literacy, young investors, behavioural finance, investment decision-making.,,Abstract
The rapid expansion of digital financial platforms has transformed the way investors access
and process financial information. Mobile trading applications, financial news portals, social
media platforms, and digital influencers have significantly increased the availability and speed
of financial information. While this digital transformation has enhanced market accessibility
and participation, particularly among young investors, it has also created challenges associated
with digital financial information overload. When investors are exposed to excessive and often
conflicting financial information, their ability to process and interpret such information
rationally may be compromised, leading to reliance on psychological shortcuts and behavioural
biases.
The present study examines the impact of digital financial information overload on the
reinforcement of behavioural biases among young investors and investigates the moderating
role of financial literacy in this relationship. The research adopts a descriptive and analytical
research design and focuses on young investors aged between 18 and 30 years. Primary data
were collected through a structured questionnaire administered to respondents with exposure
to financial markets and commerce-related education. Statistical techniques such as descriptive
statistics, correlation analysis, and regression analysis were used to examine the relationships
among digital financial information overload, financial literacy, and behavioural biases
including overconfidence, herding behaviour, and confirmation bias.
The findings reveal that young investors experience a high level of exposure to digital financial
information, which often results in information overload. The analysis indicates a significant
positive relationship between digital financial information overload and behavioural biases,
suggesting that excessive information can intensify irrational investment behaviour. Among
the biases examined, overconfidence emerged as the most prominent, followed by confirmation
bias and herding behaviour. The results also indicate that financial literacy plays a moderating
role by slightly reducing the influence of information overload; however, it does not completely
eliminate behavioural biases. Even financially literate investors may exhibit biased decision
making when confronted with large volumes of financial information.
The study highlights the need for a balanced approach that combines financial education with
behavioural awareness to improve investment decision-making. The findings have important
implications for educators, policymakers, financial regulators, and fintech platforms in
designing effective investor education programs and responsible digital financial information
frameworks. Promoting critical evaluation skills and awareness of behavioural biases can help
young investors make more informed and rational investment decisions in an increasingly
digital financial environment.
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