Navigating Eco-Fintech And Neuro Finance: Unravelling The Impact Of Financial Literacy And Behavioural Biases On Millennial Investment Decisions In Telangana's Digital Economy

Abstract

In the rapidly evolving digital economy, understanding the interplay between Eco-FinTech, neurofinance, and investor behavior is crucial. This study explores the impact of financial literacy and behavioural biases on millennial investment decisions within Telangana’s dynamic FinTech ecosystem. Leveraging both Eco-FinTech applications and neurofinance insights, the research investigates how financial knowledge moderates’ biases such as overconfidence, loss aversion, mental accounting, and herding behavior among millennials. A structured questionnaire was administered to a sample of 450 millennial investors across Telangana. Statistical tools such as Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) were employed to examine relationships between variables. Findings reveal that financial literacy significantly mitigates the adverse effects of behavioural biases, fostering more rational investment decisions. The study contributes to the growing literature on behavioural finance in emerging markets, offering valuable insights for policymakers, digital platforms, and educators promoting financial inclusion and sustainable investment behavior in the context of Eco-FinTech and neuroeconomic frameworks.