["Australian Economic Papers, EarlyView. ", "\nABSTRACT\nThis study analyzes customers' acceptance of algorithmic decisions in bank loan approvals, focusing on the differences in preferences between algorithmic and human decisions and the underlying psychological mechanisms. Experimental results indicate a marked tendency toward “algorithm aversion” among customers in loan approval scenarios, where they generally prefer decisions made by human loan officers, perceiving them as more humane and trustworthy. Further analysis reveals that perceived transparency is a critical factor influencing the acceptance of algorithms; the more comprehensible the algorithmic decision‐making process, the higher the acceptance. Additionally, humanized design elements, such as friendly interfaces and interactive features, also alleviate algorithm aversion to some extent, making customers more inclined to accept algorithmic decisions.\n"]