HelloWallet Inc - Essay Example

chieved through their independence as they neither receive any influences from any financial institutions that would like to push for their products nor receive any finances from individuals who are making purchasing decisions (Campbell 1554). HelloWallet also looks over 130,000 financial products in order to assist users in finding the best products that are available. Finally, it also uses subscription models thereby enabling their clients to pay their monthly fees (Lusardi & Mitchell 413). The company has previously encountered problems associated with pricing their products and allocating resources for their two channels which are namely the enterprise and/or the direct to consumer’s channel.

This explains how the concepts of behavioral finance can help in creating opportunities for the company while describing the concepts and opportunities (Campbell 1561). The study of behavioral finance combines both the cognitive psychological and behavioral theories for the purpose of explaining why individuals make financial decisions that are irrational (Lusardi & Mitchell 421). This discipline has also been defined as a financial field that uses theories that are psychology-based in order to explain anomalies that take place in the stock market.

The field assumes that the information structures or the traits of the market participants may systematically have influences on an individual’s investment decision or the market outcomes. The concept of anchoring in the field of behavioral finance draws from the tendency of attaching thoughts to certain reference points even if they do not have any logical references to the decisions at hand (Lusardi & Mitchell 423). The concepts may greatly benefit the company’s customers in the purchase of products that are new or original.

The concepts may create opportunities for growth within the company as they may bring in customers to purchase their new products as they may attach their thoughts to other products that have