The Role of Online Networking Channels in Shaping Financial Decision-Making
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Abstract
Online networking channels have rapidly emerged as decisive forces in shaping how individuals access financial information, evaluate investment options, and execute money-related decisions. This study examines the influence of social media platforms, messaging applications, video communities, and online forums on retail financial decision-making in the contemporary digital ecosystem. The objectives are to assess the extent of online channel exposure among retail investors and to identify behavioral mechanisms such as herding, social proof, sentiment contagion, and credibility heuristics through which these platforms affect financial choices. A mixed-method approach was adopted, integrating a structured survey of 420 retail investors with secondary data from DataReportal, World Bank Findex, CDSL, and SEBI publications. Hypotheses were tested using descriptive statistics, correlation, and regression analysis. Results indicate that exposure to online networking channels is significantly associated with higher trading frequency, greater risk-taking, and stronger herding tendencies, while financial literacy moderates these effects. The discussion highlights both empowering and harmful dimensions of networked finance. The paper concludes with implications for investors, regulators, and platforms regarding disclosure, credibility, and investor protection.
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