Financial Literacy Gaps, Cognitive Load, and Client Satisfaction in Emerging Market Wealth Management

This study applies Cognitive Load Theory (CLT) to wealth management in an emerging market context. Analyzing survey data from 357 Taiwanese bank clients using a two-step structural equation modeling approach, we examine how intrinsic, extraneous, and germane cognitive load shape advisor professionalism, process satisfaction, and outcome satisfaction. Results indicate that intrinsic load is statistically insignificant, supporting the “masking effect” hypothesis driven by heterogeneous financial literacy. Conversely, extraneous load significantly reduces process satisfaction, underscoring the necessity of digital filtering to mitigate information noise. Crucially, germane load serves as a pivotal driver, enhancing professionalism and satisfaction through constructive engagement with sustainable risk management strategies. By integrating digital capabilities into the CLT framework, this study extends behavioral finance to emerging markets and offers policy implications for improving disclosure quality and advisory effectiveness.