Loss Aversion and Financial Decisions
Can pre-filled forms help make switching accounts easier?
Intervention Description
The Financial Conduct Authority (FCA) in the United Kingdom has conducted numerous studies aimed at understanding the barriers preventing people from switching savings accounts. They determined that customers could use help in three areas: search and comparison, ease of implementation, and attention. The FCA tested a variety of different behavioral interventions finding that pre-filled switching forms and aptly-timed digital reminders led to the greatest increase in customers switching accounts.
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Effective interventions start with a nuanced understanding of how decisions are made. Our mission is to help large organizations be better and do better, using behavioral science.
Sources
OECD (2017), Behavioral Insights and Public Policy: Lessons from Around the World, OECD Publishing, Paris. https://www.oecd-ilibrary.org/governance/behavioural-insights-and-public-policy_9789264270480-en
