Loss aversion and financial decisions

The Financial Conduct Authority (FCA) in the United Kingdom worked to aid customers in decisions regarding switching savings accounts. They determined that customers could use help in three areas: search and comparison, ease of implementation, and attention. The interventions utilized by the FCA at various financial institutions included one with a front-page account switching box, one with a reverse-page switching box, one with a return switching form, a digital reminder, and an SMS reminder. It was found that the pre-filled return switching forms and the aptly-timed digital reminders led to the greatest increase in customers switching accounts.

Biases Used


Other Applications: Charitable Giving, Energy and Environmental Efficiency