18 July 2014

Financial consumer protection: 5 lessons from behavioral research

Be the first to share

In its new Focus Note, Applying Behavioral Insights in Consumer Protection Policy, CGAP (a unit affiliated with the Worldbank) presents a summary of the growing evidence from consumer and behavioral research for consumer protection policy on four topics—disclosure and transparency; complaints handling and recourse; debt stress; and fair treatment.

These new research methods provide deeper understanding of the context of the financial lives of base-of-the-pyramid financial consumers, and how that should influence consumer protection policy. Perhaps just as importantly this new research agenda is leading to more empathy for the experiences and challenges poor customers face every day. Empathy, combined with better evidence and insights, can lead to highly motivated, increasingly effective, consumer protection policies and approaches.

The CGAP experiences researching this publication — and running field experiments ourselves — have led them to five key takeaways on the role of behavioral research in consumer protection policy:
1. The behavioral evidence base in consumer protection is growing quickly.
2. To be effective, regulations need to account for incentives and how they drive behavior.
3. Innovation in base-of-the-pyramid financial markets is changing consumer protection priorities.
4. Context can greatly influence financial behavior.
5. Start small, start cheap, but just get started!

Be the first to share
8 May 2016
Two reports on age-friendly banking
Age-friendly banking: What it is and how you do it Age UK 30 April 2016 The new report showcases examples of good practice which, if rolled out more widely, could revolutionise the way in which the banks interact …
1 April 2016
Financial Times: the inflation enigma requires ethnographic analysis
Gillian Tett is the Financial Times' US Managing Editor, a very frequent writer, and an anthropologist. Her column this week unconventionally argues for on-the-ground ethnographic research on people's expectations on inflation: What we need is not …
1 April 2016
Should financial advisors nudge their clients?
Should advisors nudge clients to make prudent saving and spending decisions, asks Morey Stettner in Investor's Business Daily. Or should they step aside after educating clients and laying out the options? Some economists argue that nudging …
8 March 2016
Behavioral modeling – Shaping cultural change and behavioral evolution
One of the things we do here at Experientia that really sets us apart from other UX agencies is behavioral modeling. Our cognitive and behavioral models go beyond the standard customer journeys and personas (both …
5 March 2016
How the World Bank is ‘nudging’ attitudes to health and hygiene
Many of the problems governments and NGOs in developing countries are trying to fix are at least partly behavioural. This is where nudge theory comes in. It is about using insights from behavioural science to identify …
1 January 2016
Uday Dandavate: “stupidity wrapped in ignorance” underlies Facebook’s Free Basics program
Uday Dandavate, co-founder and CEO of design research company SonicRim, is appalled about Facebook pushing its Free Basics program in India, which he think is driven by "an attitude that represents stupidity wrapped in ignorance". …
29 October 2015
An ethnography of tax-avoidance experts
Sociologist Brooke Harrington realized that if she were ever going to understand global inequality she would have to become one of the people who helps create it. So she trained to become a wealth manager …
26 September 2015
[Book] The first-ever ethnographic study of the global reinsurance industry
Making a Market for Acts of God: The Practice of Risk Trading in the Global Reinsurance Industry By Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee Oxford Scholarship Online April 2015 Abstract Reinsurance is financial market trading in the risk of …

We are an international experience design consultancy helping companies and organisations to innovate their products, services and processes by putting people and their experiences first.

5 September 2016
Great engine, but the fuel seems poor. Discussing insight development in corporate marketing

The September issue of the Harvard Business Review (HBR) contains a lengthy essay, entitled Building an Insights Engine, on how Unilever has created the organizational capabilities to “transform data into insights about consumers’ motivations and to turn those insights into strategy.” The article was written by Frank van den Driest and Keith Weed of a […]

29 August 2016
Experientia discussing ethnography and patient-centricity at EPIC 2016

This week Experientia joins our colleagues and peers in Minneapolis at EPIC 2016, the premier international gathering on ethnography and design in industry. The theme for the conference this year is Pathmaking, emphasizing the power of ethnography to create transformative innovation, growth and strategic success for companies, industries and communities. On the second day of […]

22 June 2016
A united energy economy: Experientia helps wrap up the CITYOPT Nice pilot project

Can behavioral change address local energy issues, raise people’s awareness energy consumption issues, and directly support non-profit organizations at the same time? With the Nice pilot of the CITYOPT project, we have seen strong suggestions that it can. It also suggests that the sense of belonging to a local community is a strong motivation for […]

23 May 2016
Experientia white paper: “Conducting clinical trials is about working with patients”

Patient-centricity is one of the defining issues facing clinical trials in the pharma industry. The past few years have seen a growing awareness by pharmaceutical companies of the importance of patient-centricity – but they have also illustrated that not everyone is clear on just what patient-centricity is, or how to achieve it. After using UX […]

12 April 2016
The latest on innovation in Energy Efficient Buildings: annual round-up of EU Commission projects

Every year, the Energy-efficient Buildings (EeB) Public Private Partnership (PPP) publishes the EeB PPP project review – a round-up of energy-efficiency projects that have been co-funded by two European Commission schemes. This year, the print and digital booklet design was done by Experientia, in particular by our talented visual and interaction designer Dohun Jang. Experientia […]

8 March 2016
Behavioral modeling – Shaping cultural change and behavioral evolution

One of the things we do here at Experientia that really sets us apart from other UX agencies is behavioral modeling. Our cognitive and behavioral models go beyond the standard customer journeys and personas (both useful tools, and often preliminary steps to behavioral modeling) to create frameworks that can be used to make people more […]

See all articles