Consumer financial information processing: An integrated approach to examine individual differences

This study applied an integrated approach to construct a hierarchical framework for consumer financial information processing. Individual differences in customers' psychological, cognitive and motivational characteristics were examined as antecedents. Using data collected from a sample of 613 U.S. adults, this study used the structural equation modeling method to identify significant direct and indirect relationships amongst personality traits, financial self-efficacy, financial information-gathering ability, search motivation, financial information sufficiency and the utilization of heuristics and systematic financial information-processing modes. The results showed that consumers' information sufficiency (+) directly explained the application of the heuristic mode, whereas consumers' information gathering ability (+), motivation to search (+) and information sufficiency (+) directly explained the use of the systematic mode. Financial self-efficacy demonstrated positive indirect associations with both heuristic and systematic modes. The results also revealed that personality traits including agreeableness, emotional stability and extraversion indirectly explained the use of information-processing modes. Agreeableness (?) and emotional stability (+) were indirectly associated with both heuristic and systematic information processing modes, whilst extraversion (+) was only indirectly associated with the heuristic mode. Openness (+) was the only trait that was directly associated with the systematic mode. This study contributes to the literature on consumer financial information processing by connecting individuals' psychological, cognitive and motivational characteristics. The findings of this study provide valuable insights and policy and practical implications within the industry.