INVESTOR SENTIMENT TOWARDS FINTECH DURING GLOBAL CONFLICTS

Abstract

Geopolitics problems and cross-border wars have been historically experienced in the financial markets that have caused change in behavior and perceptions of risk among various sectors by investors. The recent several years have witnessed the market to be facing sudden explosion of financial technology (FinTech) that presents some alternative dynamics in the investment decision making process, in particular during periods of uncertainty. This research is aimed at examining how investors feel about the tendency toward investing in FinTech during international conflicts and the assessment of how the existing crises affect investment preferences, maximum risk, and trust in the stock market. The research applies the mixed methodology whereby the quantitative method of analyzing market dynamics has been utilized in conjunction with the primary data that has been collected following the design of structured questionnaires, which were administered to retail and institutional investors. The intention to draw their impacts on investor sentiment credits four important variables, perceived risk, expected returns, technological trust and geopolitical awareness. The testing and the correlations of the statistical tools include the correlation and regression analysis to test the relations of Fintech investment behavior and the global conflict indicators. The findings will indicate that despite the global conflicts being more likely to increase market instability and raise risk aversion, the investments in FinTech will be less vulnerable to such factors due to their digital nature, innovation capabilities, and the possibility to help during times of crisis and access finances. However, the mood of investors is probable to shift based on financial literacy, past experience of investment and the news on geopolitics. The current body of work is a product of this research that forms an understanding of the behavioral and strategy component of the FinTech investment in the context of the geopolitical instability. The results will be of value to investors, policymakers and business managers in designing adaptive strategies of investment and enhancing the financial system stability to the unpredictable global environments.