People have apparently conflicting  goals regarding money: 
Enjoy spending money and having financial security.

Indulge in spur of the moment purchases and avoid the regret of overspending. 
Good financial services should be able to accommodate these (apparently) conflicting goals.

Communicate Risk & Financial Information in an Easy to Process Way.

Encourage Financially 
Responsible Behaviors

by Designing Self-Control Support Tools. 

Design Incentives, Rewards, Reminders and Notifications that Work.

Learn the Behavioral Design Methodology and How to Run Experiments.

Learn how to use Behavioral Design to create consumer finance products that fit with human nature.
People deal with money daily. Nonetheless, people's behavior and decisions about money often violate economic rationality.

It is (economically) Irrational to:

  • Have, at the same time, 500$ debt (loan) and 7000$ in savings.

  • Pay very high interest rates for seemingly useless purchases.

  • Get a loan of 400$ at 10% interest, then put 400$ in a savings account with 4% interest.

  • Gladly pay 10$ for a bottled water in a restaurant and spend 20 minutes looking for a 20¢ coupon at the local grocery.

  • Forgo a 10$ discount and be outraged by an 8$ surcharge.

Nonetheless, lots of real people do some of these things and for very good reasons.

Behavioral Science & Behavioral Design for Consumer Finance Products includes:
  • 10 weekly lessons (2 - 2.5 hours),
  • Assigned reading materials,
  • Applications of learned knowledge - case-based assignments,
  • Personalized feedback on the case-based assignments,
  • Relevant workbooks,
  • 1 practical lesson (guiding participants through the behavioral design process).
The learning program can be delivered both "in person" and through an online training platform.
Shorter, more compact, versions of the program are available.
Curriculum for Behavioral Science & Behavioral Design for Consumer Finance Products:
Lesson 1 Rationality and Irrationality 

  General introduction 

  Presentation of the Dual System of Reasoning Theory (System 1, System 2 and their interactions).

  How to adapt messages (communication) to System 1’s particularities.

 

Lesson 2 Decision making under uncertainty and heuristic judgment

  How we should make decisions in conditions of uncertainty.
  How we actually make decisions in conditions of uncertainty.
  Heuristic judgment – an adaptation for dealing with high levels of uncertainty.

Lesson 3 Thinking about the future 
  Decision making that involves time.
  Decisions about the future and associated shortcomings.
  Possible ways of tackling these shortcomings.

 
Lessons 4 & 5 Behavioral science for product* design 
  Thinking about money.
  Limitations of Self-Control (Willpower), implications for behavior and possible solutions. 
  Some elements of choice architecture.

  * product refers to consumer finance products (insurance, banking)
 

Lesson 6 Social influences on human behavior
  Peer influences.
  Social competition.
  Authority influences.
  How social influences can be used in communication and product design. 

Lesson 7 Designing incentives and feedback (rewards, reminders and notifications)
  Principles and illustrations of good incentive and feedback systems.

Lesson 8 4D Model of Human Behavior & Intro on Behavioral Design Process
  The 4D Model of Human Behavior – a framework for structuring factors that influence human behavior that   is useful for understanding the context in which a behavior occurs. 
  Introduction of the Behavioral Design Process (1) Clarification, (2) Behavioral audit, (3) Ideation and
  Behavioral Intervention Design, (4) Testing.

Lessons 9 & 10 Testing - Designing RCTs
  Methodology lessons on designing randomized control trials (RCTs).

Shorter, more compact, versions of the program are available.

Behavioral Science & Behavioral Design for Consumer Finance Products
An MBA-Style Learning Program

Nick’s behavioral design program has profoundly changed the way we perceive people and their interactions with money. His course covered several key aspects of human behavior, economics and behavioral design in both breadth and depth. This course should become the “must-have” for researchers and product designers in the financial services industry.

Pieter Rossouw, Consumer & Market Insights Manager (Z.A.)

Nick's workshop on Behavioral science for financial products was an illuminating sprint through many behavioral biases that any good product design needs to take into account. The content is sometimes technical, but Nick's explanations make it very easy to follow and understand. We left inspired and with a much better understanding of customer behavior.
Laura C., Associate at Bankable Frontier Associates (USA)

Nick provided our team with an in-depth understanding of the core concepts of behavioral science and behavioral design. It was a phenomenal learning experience with lots of practical examples and challenging yet fun assignments which kept the momentum going. He worked really hard to instill the important concepts in our minds.

Gretel Wundram, Product Manager Financial Services (Z.A.)

Contact Nick Naumof

Contact me to talk about how your organization can benefit from learning how to apply behavioral science insights. 

I customize my programs to fit the specific needs of each corporate client.

Please use the form to make sure that your message ends up in my inbox and not in a spam folder.

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