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Getting to grips with Behavioural Economics as part of Money Advice Service’s service delivery Cait Hurley

18/06/2014

MAS’s commitment to behaviour change

Money Lives report, 2014

Business plan 2013-14

Mindspace:

Messenger:

Incentives:

Norms:

Defaults:

Salience:

Priming:

Affect:

Commitment:

Ego:

We are more likely to act on information if the messenger has authority

We dislike losses more than we like gainsWe overweight small possibilitiesWe live for today at the expense of tomorrow

Influenced by those around us

We rarely opt out of the status quo

We respond better when we easily understand

We are influenced by un/conscious prior exposure

We are influenced by emotional response

We try to keep our promises

We try to measure up to our image of ourselves

Mindspace:

Messenger:

Incentives:

Norms:

Defaults:

Salience:

Priming:

Affect:

Commitment:

Ego:

We are more likely to act on information if the messenger has authority

We dislike losses more than we like gainsWe overweight small possibilitiesWe live for today at the expense of tomorrow

Influenced by those around us

We rarely opt out of the status quo

We respond better when we easily understand

We are influenced by un/conscious prior exposure

We are influenced by emotional response

We try to keep our promises

We try to measure up to our image of ourselves

East:

Easy

Attractive

Social

Timely

DefaultsSalienceReduce the ‘hassle’

Attract attentionRewards and sanctionsSocial Norms

The power of networksCommitment to others

Right timeImmediate costs/benefitsHelp to plan response

gameful designMindspace:

Messenger:

Incentives:

Norms:

Defaults:

Salience:

Priming:

Affect:

Commitment:

Ego:

We are more likely to act on information if the messenger has authority

We dislike losses more than we like gainsWe overweight small possibilitiesWe live for today at the expense of tomorrow

Influenced by those around us

We rarely opt out of the status quo

We respond better when we easily understand

We are influenced by un/conscious prior exposure

We are influenced by emotional response

We try to keep our promises

We try to measure up to our image of ourselves

East:

Easy

Attractive

Social

Timely

DefaultsSalienceReduce the ‘hassle’

Attract attentionRewards and sanctionsSocial Norms

The power of networksCommitment to others

Right timeImmediate costs/benefitsHelp to plan response

Gameful:

The goal

The task

Show rewards

Show progress

Progressively satisfy

Tell them they’re winning

Tetris task completion gets harder

Project 1: Money Lives

Mortgage calculator

New mortgage calculator

New mortgage calculator

Healthcheck

Healthcheck diagnosis

Healthcheck

Healthcheck dataNew user registrations on website 11146 4968 5656 4243 4012

New user registrations with Advice Plans 2185 870 862 706 588

New user registrations due to Health Check 1512 550 577 461 364

Percentage of user registrations due to Health Check 14% 11% 10% 11% 9%

Advice Plans 383551

Tasks

Active 2100

Completed 8082

Dismissed 7777

Overdue 2076

Inactive 1744715

References:

Daniel Kahneman“Thinking Fast and Slow”ISBN 978-0141033570

Jane McGonigal“Reality is Broken”ISBN 987-0099540281http://www. janemcgonigal.com/

Endhil Mullainathan, Eldar Shafir“Scarcity”ISBN 978-1846143458

The Behavioural Insights Team“East: Four simple ways to apply behavioural insights”http://www.behaviouralinsights.co.uk/

Fair Banking Foundationhttp://www.fairbanking.org.uk/