Abstract/Summary

Little is known in the current literature about the factors affecting retail investor (RI) propensity to engage with financial products other than their attitude towards financial risk (ATFR). This study explores the role of a number of variables, thematically grouped into domain-specific (product information and attitudes towards finance) and general impact factors (life variables). Data from 970 UK-based RIs, collected in 2017 across a variant of products, suggest that when analysed thematically, variables related to product information emerge as the most important group of influence factors. While the relevance of ATFR is also vindicated in the findings of this study, the results bring a dose of life-context to situations of financial decision-making by illustrating that information about the product as well as life variables matter significantly, in particular negative emotions and sensation seeking – thereby highlighting a duty of care towards potentially vulnerable people. The study discusses implications arising from the findings in relation to research, practice and policy.