Heuristics in financial decision-making: the selection of SME financing by advisers in an increasingly diverse market

What is it about?

The findings suggest a strong bias of decision-making towards the more traditional banking products. Yet advisers state they are aware of, and familiar with, other financial solutions. We have also found that fintech solutions are hardly used to prepare financing solutions up front. Financial advisers estimate the likelihood of acceptance by a few financial providers they know well within their personal network. We suggest that financial advisers are guided by previous experiences, do not fully assess a wide range of options in their work but need shortcuts to fulfil the needs of their clients. Heuristics are not fixed decision-making guidelines, but help the practitioner in decision-making in which he has to take various perspectives into account. Within these processes satisficing is a crucial mechanism, a best possible solution is being developed given circumstances and cognitive and emotional abilities and limitations.

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