Analysis of Financial Therapy as a Design Thinking Tool for Selected Entrepreneurs working in Personal Financial Management

Abstract

A research titled Analysis of Financial Therapy as a Design Thinking Tool for newlineSelected Entrepreneurs working in Personal Financial Management was undertaken. newlineObjectives of the study included understanding the challenges faced by individual newlineportfolio managers in scaling-up their services, finding out psychological challenges newlinefaced by individual investors while making financial decisions, examining the role of newlinefinancial therapy in improving the quality andamp; quantity of investments, and ascertaining newlinethe value of design thinking achieved by implementing financial therapy. 75 portfolio newlinemanagers and 400 investors from Pune were surveyed through two separate newlinequestionnaires. The average agreement for challenges in scaling-up of business for newlineportfolio managers was 87% and was statistically significant (p=0.004). The average newlineagreement for psychological challenges faced by investors while investing was found newlineto be 86% and was statistically significant (pandlt;0.0001). The average agreement for newlinerole of financial therapy in improving the quality andamp; quantity of investments for newlineinvestors was found to be 81% and was statistically significant (pandlt;0.0001). The newlineaverage agreement for design thinking achieved by implementing financial therapy newlinehas a significant value for portfolio managers was 88% and was statistically newlinesignificant (p=0.003). In case of portfolio managers, the demographic factors have a newlinesignificant bearing on Section I (Challenges) responses, they do not have a significant newlineimpact on Section II (Design Thinking) responses. Overall it can be concluded that newlinewhile the concept of financial therapy is still at a very nascent stage in India, it holds a newlinehigh potential for both portfolio managers and investors. The concept can be newlineleveraged as a design thinking tool and can be of immense benefit for the investment newlinefraternity. Implications of this study are for both portfolio managers and investors. newlineBoth should gain an understanding of the concept of financial therapy and use it in newlinepractice to make investment decisions