Authors: Assistant Professor Dr. Ekta Aggarwal
Abstract: The convergence of artificial intelligence (AI) and mobile financial applications is reshaping personal finance. This paper synthesizes theoretical and empirical perspectives on how AI-driven financial apps shape consumer engagement and financial well-being. Drawing on an integrative review spanning technology acceptance, behavioral economics, consumer psychology, and financial services research, we develop a conceptual framework mapping the pathways through which AI capabilities—personalized recommendations, conversational interfaces, predictive analytics, and automated advice—influence engagement behaviors and downstream financial outcomes. Three mechanisms emerge as central to how AI-powered financial apps affect well-being: information personalization that reduces cognitive load and improves decision quality; behavioral nudging that redirects spending and saving patterns; and capability-building that strengthens self-efficacy and financial literacy. At the same time, algorithmic opacity, data privacy vulnerabilities, over-reliance on automated advice, and engagement-maximizing design pose significant risks to consumer welfare. The paper advances five research propositions and concludes with implications for app designers, regulators, and consumer advocates, arguing that realizing AI's potential in personal finance requires subordinating engagement metrics to well-being outcomes, underpinned by ethical governance and evidence-based regulation.
