Financial institutions have an important role in gender equality and the fight against domestic violence. Behavioral Science to drive engagement for financial institutions is a big ally to drive change and financial wellbeing.
Last month we celebrate International Women's Month, a time to remember the social, economic, cultural, and political achievements of women throughout history and remember that there is still a lot to achieve for gender equality. Financial empowerment is a critical component as it allows women to gain greater control and economic security allowing them to more easily leave violent relationships.
We all know that changing habits is hard, and managing finances well is a far away dream for many women (and men) in our society. Behavioral science research has shown that understanding the psychological and emotional factors that influence financial decision-making can help people to make better financial choices and improve their financial well-being.
At Flourish FI we celebrated March 8th with a talk about Behavior Chance with our COO and co-founder Jessica Eting and Katie Dove from Irrational Labs about Behavior Science and how to develop responsible financial products using behavioral design.
The first step is to understand that people don't always act in their long-term best interests, and that having information doesn't change behavior. That means that when designing behavioral interventions, product teams need to tap into the breadth of research that shows how people systematically act irrationally. Taking into account people’s context and the systems at play to achieve the desired outcomes. As well as testing and experimentation are critical pillars of creating impactful interventions.
When developing our technology we used behavior design to identify bad financial behaviors that we could change, developing financial wellbeing for the end-user and engagement to financial institutions.
We developed personalized missions (eg. payments on time, deposits increase, using the mobile banking…) and educational games (eg.trivia) where the user can win points. Those points can be used to play instant win activities with chances of prizes.
Developing good money habits is hard! There are so many things playing against you: from basic human needs that cost money, to desire, sales, showcases, social media. So it is important, when designing behavior change products to give the brain rewards and nuggets. Our technology give the user points for every little step on the financial journey.
Finally, our technology is in use by financial institutions in more than four countries and has proven to double the in app usage, raise 270% the transactional volume and have a 32% increase in the deposit values.