Behavioral approach to financial education and mitigation of bias in credit decisions

Rodríguez Cairo V.; Vílchez Olivares P.A.; Oscanoa Ponce B.F.; Barrantes Martínez A.M. · Revista Venezolana de Gerencia (2024) · DOI: 10.52080/rvgluz.29.108.5

Resumen

The research examined behavioral financial education and its contribution to the mitigation of biases in the credit decision-making process. The analytical-synthetic method was used to describe the theories on financial education, behavioral finance and biases in credit decision making. Documentary review was used as a data collection technique, including information from scientific articles published in indexed journals and books specialized in behavioral finance. The main result obtained was that there are twenty- four biases that interfere in the credit decision-making process, which are significantly influenced by various behavioral and emotional factors, thoughts, perceptions, desires, values, fears, prejudices or affections. These biases demand special attention to prevent borrowers from becoming over-indebted or delinquent. It was concluded that, although the biases affecting borrowers cannot be eliminated, they can be mitigated through certain effective techniques, so that financial education with a behavioral approach plays a fundamental role towards that purpose.

Instituciones: Universidad Nacional Mayor de San Marcos