{"id":42184,"date":"2022-05-03T09:30:12","date_gmt":"2022-05-03T08:30:12","guid":{"rendered":"https:\/\/www.ccpc.ie\/business\/?p=42184"},"modified":"2022-05-03T08:32:33","modified_gmt":"2022-05-03T07:32:33","slug":"ccpc-research-shows-financial-institutions-how-they-can-use-behavioural-insights-to-improve-consumer-saving-habits-and-financial-well-being","status":"publish","type":"post","link":"https:\/\/ccpc.inventise.ie\/business\/ccpc-research-shows-financial-institutions-how-they-can-use-behavioural-insights-to-improve-consumer-saving-habits-and-financial-well-being\/","title":{"rendered":"CCPC research shows financial institutions how they can use behavioural insights to improve consumer saving habits and financial well-being"},"content":{"rendered":"

The Competition and Consumer Protection Commission (CCPC) has today launched findings from its successful behavioural research trial on consumer saving habits. The research was carried out in response to an identified need to encourage short-term saving habits among Irish consumers to increase financial resilience against unexpected financial shocks.<\/p>\n

Designed and analysed by the Economic and Social Research Institute (ESRI)\u2019s Behavioural Research Unit and facilitated by Bank of Ireland in a research trial with real consumers, the findings clearly show a positive increase in savings behaviours when behavioural insights are incorporated into savings product design and marketing materials.<\/p>\n

The CCPC has used the findings to develop a guide for financial providers<\/a> on how they can encourage short-term saving habits and improve the financial well-being of their customers.<\/p>\n

\u2018First of its kind\u2019 behavioural research in Ireland<\/h2>\n

This behavioural study represents the first trial of its kind in Ireland and one of the first in Europe. Developed as a large-scale randomised controlled trial (RCT) with real consumers, the study examined the effects of behavioural science interventions on whether consumers open a savings account and engage in precautionary saving. The results of the behavioural research demonstrated how altering savings application forms with \u2018pledge tools\u2019, interactive calculators and using infographics about financial shocks can support consumers in developing positive short-term savings habits, which is an important part of financial well-being.<\/p>\n

Behavioural interventions boost savings account uptake by 25%<\/h2>\n

The research shows that by applying behavioural science to customer communications and the design of application forms, a financial provider can increase the uptake of savings accounts by over 25%. The ESRI\u2019s research report also records the greatest benefit among customers on lower incomes, who are most vulnerable to the negative effects of unexpected expenses and financial shocks.<\/p>\n

Future \u2018financial shocks\u2019 shown as key savings motivator<\/h2>\n

As part of the behavioural research trial, customers were sent marketing emails with consumer-friendly infographics that illustrated financial shock statistics, for example; \u201c6 in 10 people face an unexpected expense each year\u201d. Customers who received these emails were 20% more likely to open a savings account than those who received standard marketing materials. The study\u2019s financial shock emails and digital ads saw a \u201cclick-through\u201d rate increase of almost 10%.<\/p>\n

Additional evidence-based findings showed:<\/h2>\n