The Influence of Over Confidence and Loss Aversion on Investment Decision of Gen Z Fintech Users

Abstract

This study aims to analyze the effect of Over Confidence (OC) and Loss Aversion (LA) on the Investment Decision (ID) of Generation Z Fintech users in Garut Regency in 2026. The study employed a quantitative method with descriptive and associative (causal) approaches. The population comprised all Generation Z individuals (born 1997–2012) domiciled in Garut Regency who actively invest through Fintech platforms, whose exact number is unknown. A sample of 336 respondents was selected using a purposive sampling technique. Primary data were collected through an online questionnaire measured on a five-point Likert scale and analyzed using validity and reliability tests, classical assumption tests, and multiple linear regression analysis with IBM SPSS. The results show that Over Confidence has a positive and significant effect on Investment Decision (t = 3.930; Sig. 0.000 < 0.05), and Loss Aversion also has a positive and significant effect on Investment Decision (t = 3.033; Sig. 0.003 < 0.05). Simultaneously, both variables significantly affect Investment Decision (F = 12.989; Sig. 0.000 < 0.05) with an R Square of 0.072 (7.2%). These findings indicate that psychological biases need to be considered by Fintech platform developers in designing investment education to encourage more rational decision-making among Generation Z investors.