How do Digitalization and the Fintech Phenomenon Affect Financial Decision-Making in the Younger Generation?

Abstract

Generation Z, who can handle almost everything online, from the picture taken by their mobile phone to purchasing or transferring money. Therefore, using several tech solutions, they are not looking for traditional banking solutions, like the ones where physical presence is needed. Their wish is to obtain secure, fast, easy financial solutions, and services. Additionally, to ensure payments can be easily made and investments are available on hand. All of this being virtually available any time when it is needed, even from their mobile phones and also providing a high-level of personalization possibilities. In our study, we surveyed risk attitudes governing individual investment decisions based on primary research conducted on a large sample size among university students. When surveying risk attitudes, we presented a group of university students studying in Hungary with questions of a test published in an international journal article by John Grable and Ruth H. Lytton (Grable – Lytton, 1999). Between early December 2020 and 15 January 2021, more than 2,000 students filled out our questionnaire. The results of the questionnaire show that risk attitude values among the group of Hungarian university students are in line with international experiences. Primary data collection will continue in the spring of 2021, and it will subsequently allow a comparison to be made between the attitudes to risk and investment of university students from different fields of study. The composition of the questionnaire's respondents will make it possible to survey and compare the 'Z’ generation’s attitude with that of other generations.

Keywords: digitalization, fintech, investment, Grable-Lytton test, COVID-19 pandemic, Finfluencer