Describing Behavioral Finance Consequences on the Banking Organization

Document Type : Original Article


1 Department of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Associate Professor, Department of Management, Islamic Azad University, Tehran Centeral Branch, Tehran, Iran.

3 Associate Professor, Department of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran.

4 Associate Professor, Department of Accounting, Shahid Beheshti University, Tehran, Iran.


In behavioral finance and economics; the role of natural reactions of (not necessarily rational) human behaviors as an influencing variable on other economic and financial variables (which has not been considered in the past) is studied with further emphasized.The main issue is the existence of various behavioral biases in the decision making pro-cesses and selection of banking network in financial markets. Delphi and Excellence method test for data collection. In this research, we used a grounded theory approach initially based on data gathering through interviews with 74 experts, taking field notes, participatory obser-vation, documentation, abstract events, data generation, data analysis with a systematic ap-proach, open coding, axial coding, selective coding, and finally, after evaluating the model's validation with the approval of 222 subject matter experts, the model is presented with four dimensions and 20 categories and 239 features. Behavioral Finance for Private Banking: From the Art of Advice to the Science of Advice’ is nonetheless a far-reaching architecture for client-centric bespoke private wealth management, entailing a symbiosis of behavioral finance and private banking, handling state-of-the-art domains of FinTech and neuroscience.