At the intersection of behavioural economics, sociology, and FinTech lies a dynamic field of opportunity for platforms to improve user decision-making, boosting profitability and fostering mutually beneficial outcomes. Recent insights from the London School of Economics (LSE) and The Open University (OU) shed light on how digital platforms can harness behavioural insights to craft services that drive better choices and create more sustainable interactions with users.
One of the leading voices in this domain, Ruth Persian, Principal Advisor of the Behavioural Insights Team (BIT)—commonly known as “The Nudge Unit”—emphasised the importance of behavioural insights at a joint LSE and OU event. Persian explained how guiding users towards making informed decisions can have a significant impact on both user welfare and platform profitability. A prime example can be found in the gambling industry, where BIT has collaborated with the Gambling Harms Research to explore how behavioural nudges can mitigate the risks associated with gambling.
Activity Statements: Empowering Users for Better Choices
Ruth Persian’s work in gambling harms research provides a clear framework for FinTech platforms to consider. BIT tested four different types of activity statements, designed to help users better understand and control their gambling behaviours. These statements included:
• Baseline: An Australian Government-mandated activity statement for gambling platforms. • UK Industry Leader’s Statement: A non-mandated version of an activity statement from a major UK gambling provider. • Prediction Correction: A statement where users were asked to predict their gambling usage before seeing their actual activity, testing recall accuracy. • Call to Action: A lab-based approach where users set up a gambling limit after reviewing their activity statement.
Across all tests, users with activity statements were significantly better at recalling their betting behaviour, demonstrating the clear value of feedback in guiding better decisions. Persian concluded that these tools can help users make more informed choices about their gambling, and by extension, similar approaches can be applied across digital platforms.
At Ecolibero, we have successfully implemented these insights for clients seeking to offer better financial or service-based decision-making tools for their users. For example, we’ve applied prediction correction strategies to FinTech platforms, helping users forecast and track their savings or investment goals more effectively.
Behavioural Economics Beyond Rationality
While there is compelling evidence supporting the use of behavioural economics to steer better decisions, relying solely on rational decision-making—a notion often aligned with ‘homo economicus’—is a limited approach. Not all users behave rationally, and acknowledging this can unlock new ways to engage users. Platforms should consider irrational behaviour patterns by introducing controls that account for emotions, cognitive biases, and irrational choices.
Dan Ariely, a renowned behavioural economist, has also addressed this concept in the context of financial platforms. Speaking on the Australian podcast Inside the Rope, Ariely critiqued traditional portfolio statements, which typically focus on external market factors. Instead, he advocated for statements that highlight actions within a user’s control. When portfolio statements are centred on market fluctuations, users can become emotionally driven—leading to decisions that contradict their original investment strategies, such as selling in a panic when stock prices drop.
One effective strategy Ariely suggested is having users write future letters to themselves. For example: “Dear David, I know the market will drop one day, and right now, I’m telling you not to sell even if it drops by 5%.” Such reminders reinforce long-term goals and help users resist short-term emotional impulses.
At Ecolibero, we’ve integrated similar techniques into financial platforms for our clients, enabling users to visualise their long-term goals, progress, and personalised strategies through tools such as goal-oriented account statements. These empower users to remain focused on their objectives, even during market volatility, as seen in successful examples like Bondora’s Go and Grow product. This service offers users a visual representation of their progress towards savings goals through pie charts and graphs, providing constant feedback and helping them stay on course.
A Balanced Approach for Digital Platforms
The insights from Ruth Persian and Dan Ariely highlight the power of integrating behavioural nudges and emotional safeguards into platform design. At Ecolibero, we see immense potential in combining these approaches to drive more engaged, responsible, and satisfied users. Whether through activity statements that help users understand their behaviours or goal-tracking tools that reinforce long-term intentions, the right behavioural insights can unlock growth and improve user retention.
At Ecolibero, we specialise in applying these behavioural economic insights to help FinTech platforms create user experiences that are both mutually beneficial and profitable. If you’re interested in how we can enhance your platform, get in touch today and discover how we can help your users make better decisions—leading to better outcomes for your business.