Evolving finance: the power of behavioral finance and innovative financial instruments
DOI:
https://doi.org/10.51896/rilco.v6i23.646Keywords:
FinTech, Market Psychology, Behavioral Finance, Behavior, Financial InnovationAbstract
The revolution in behavioral finance has signaled a shift toward a more diverse approach to financial models, surpassing the predominance of the neoclassical movement. This trend towards model diversification has propelled faster advancements with expectations of significant benefits for different social actors. The narrative has played a pivotal role in the success and identity of finance, stimulating innovation and promoting challenging and disruptive stances. Despite the challenges associated with the scientific study of economic and financial narratives, their analysis can provide a deeper understanding of the need for constant innovation in economic processes to achieve social objectives. Recent examples such as social enterprises, crowdfunding, and social impact bonds underscore the necessity and interest. Collectively, the revolution in behavioral finance offers new perspectives and approaches to explore financial behavior and its global impact, creating opportunities to address economic and social challenges creatively and efficiently.
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