Financial Literacy, Fintech, and Behavioural Dynamics in Generation Z Investment Behavior: A Qualitative Review

Abstract

The rapid growth of financial technology (fintech) has transformed investment behavior among Generation Z, a cohort characterized by high digital connectivity and early participation in financial markets. Despite increased access to investment platforms, concerns remain regarding behavioral vulnerability among young investors. This study aims to explore how financial literacy, fintech usage, Fear of Missing Out (FOMO), internet addictive behavior, and social relations interact to shape fintech-based investment behavior among Generation Z. Using a qualitative literature review approach, this study synthesizes findings from peer-reviewed academic journals and selected industry reports published over the last decade. The analysis reveals that while financial literacy provides an important cognitive foundation for investment decision-making, its influence is often weakened by emotionally driven factors and digitally intensive environments. Fintech platforms accelerate decision-making processes and reduce deliberation, while social exposure and real-time information contribute to heightened FOMO. Excessive internet use further amplifies emotional responses and impulsive behavior, increasing financial stress and behavioural risk.

The findings suggest that Gen Z’s investment behavior is shaped by complex interaction of cognitive, psychological, social, and technological factors rather than by financial knowledge alone. This study contributes to the literature by offering an integrative perspective on fintech-based investment behavior and financial education.