Unlocking the Neural Mechanisms of Consumer Loan Evaluations: an Fnirs and Mlbased Consumer Neuroscience Study

Abstract

This study conducted a comprehensive exploration of the neurocognitive processes underlying consumer credit decision-making using cutting-edge techniques from neuroscience and artificial intelligence (AI). Employing functional Near-Infrared Spectroscopy (fNIRS), the research examines the hemodynamic responses of participants while evaluating diverse credit offers. The study integrates fNIRS data with advanced AI algorithms, specifically Extreme Gradient Boosting, CatBoost, and Light Gradient Boosted Machine, to predict participants' credit decisions based on prefrontal cortex (PFC) activation patterns. Findings reveal distinctive PFC regions correlating with credit behaviors, including the dorsolateral prefrontal cortex (dlPFC) associated with strategic decision-making, the orbitofrontal cortex (OFC) linked to emotional valuations, and the ventromedial prefrontal cortex (vmPFC) reflecting brand integration and reward processing. Notably, the right dorsomedial prefrontal cortex (dmPFC) and the right vmPFC contribute to positive credit preferences. This interdisciplinary approach bridges neuroscience and finance, offering unprecedented insights into the neural mechanisms guiding financial choices. The study's predictive model holds promise for refining financial services and illuminating human financial behavior within the burgeoning field of neurofinance. The work exemplifies the potential of interdisciplinary research to enhance our understanding of human financial decision-making.