Abstract

The growth of the wealth management industry in Indonesia continues to accelerate in line with increasing public awareness of long-term financial planning and asset management. However, investment decision-making among bank customers often deviates from rational behavior due to the influence of financial literacy and behavioral biases. This study aims to explore the influence of financial literacy and behavioral bias on the purchase decisions of wealth management products among affluent customers of Bank Rakyat Indonesia (BRI) in the Jabodetabek area. Using a qualitative phenomenological approach, in-depth interviews were conducted with affluent clients and wealth managers at BRI Priority and BRI Private units. The findings reveal that despite a relatively high level of financial literacy, investment decisions are still shaped by psychological factors such as overconfidence, herding, and loss aversion. Overconfidence leads to excessive risk-taking, herding arises from social influence, while loss aversion encourages conservative choices. Financial literacy serves as a moderating factor that mitigates the negative effects of behavioral bias on investment decisions. This study highlights the importance of contextual financial education and behavioral advisory strategies within BRI’s wealth management services and strengthens the application of Behavioral Finance Theory in the Indonesian banking context.