Bridging Neural Technologies With Financial Decision-Making in Neurofinance

Abstract

This book chapter delves into neurofinance, an interdisciplinary domain merging neuroscience, psychology, and financial economics to investigate the neural mechanisms driving financial decision-making. It highlights the role of brain regions such as the prefrontal cortex, amygdala, and striatum in processing emotions, risks, and rewards, alongside the influence of neurotransmitters like dopamine and serotonin. The chapter discusses technological tools like fMRI, EEG, and BCIs, emphasizing their application in studying biases, risk tolerance, and reward anticipation. Practical implications include personalized investment strategies, improved financial planning, and enhanced market stability. Addressing ethical concerns and methodological challenges, the chapter underscores the potential of neurofinance to transform financial systems by integrating neural insights with AI and emerging technologies for better decision-making.