Promoting Inclusive Markets and Financial Systems
Webinar Series: Behavioral Approaches for Financial Product Design
This webinar series, brought to you by SEEP and ideas42 with the support of MetLife Foundation, will introduce behavioral approaches to financial product design, before offering a deeper dive into behavioral principles to incorporate when designing financial services products.
Through these webinars, practitioners will come to view key challenges in the financial inclusion space through a behavioral lens, gaining valuable insights about design features that will help clients accomplish their financial goals.
Learning about the ins and outs of effective behavioral design for financial products will enable participants to:
- Build intuition to identify design features and environmental factors that affect key behaviors in financial decision-making;
- Understand, through concrete examples, how to use product design to work around potential psychological biases and directly improve consumer outcomes; and
- Learn how to apply behavioral principles and design concepts to create financial products that better serve their target consumers.
Webinar 1: Introduction to Behavioral Design in Inclusive Finance
February 24 | Recording & Materials >>
Webinar 2: Behavioral Design: Savings Products
Tuesday, March 29 | Recording & Materials >>
Why Behavioral Design?
Effectively designed financial products have the power to unlock the potential of customers to achieve their life goals—grow their businesses, get out of poverty, and educate their children. In this series, practitioners will learn how a growing body of applied insights from behavioral science can improve the design and effectiveness of financial products, services and programs (such as loan repayment, savings accounts, and mobile transaction services).
The ultimate impact of a financial product or service depends on how end-users interact with the offering: whether they notice it in the first place, decide to try it out, or continue using it. In short, a product or service’s capacity to influence behavior is a crucial component of its success. Designing an effective financial product or service that can influence human behavior, then, begins with understanding the drivers of financial behaviors.
Traditional economics can fall short in helping financial inclusion practitioners grasp why people make the choices they do. Fortunately, behavioral science can help us paint a fuller picture of decision-making and consumer behavior, accounting for a variety of psychological and contextual factors that influence. Properly used, behavioral science applications can lead to better financial decisions and actions from consumers leading to better outcomes overall.
The contextual factors that behavioral science helps us understand better may include anything from how information on services is displayed to the time of month at which a service or program is first offered. These elements can be key to figuring out, for example, why someone wouldn’t open a savings account when he would otherwise derive many benefits from it. Anticipating key contextual factors and understanding how they influence behavior can thus be a critical yet low-lift consideration when designing a financial product. For example, re-designing a complicated account opening form to make it simpler and easier to navigate can have a significant effect on increasing product take-up rates, all without changing the product itself. Drawing from research in economics, psychology, and other social sciences, we can start to identify where small product design tweaks can be made to better address the financial needs of the end-user and improve financial outcomes, both for the provider and consumer.