Doctoral candidate, City University of Hong Kong
Changing savings behavior using mobile technologies
Many people consider the behavior of regularly setting aside money for future consumption to be a difficult task. As a result, financial savings goals are often not achieved. Research suggests that multiple behavioural biases can inhibit an individual's ability to set aside savings for the long-term. Persuasive technology is defined as technology designed to reinforce, change, or shape users’ attitudes or behavior. Mobile phones have been described as potentially the most powerful channel for persuasion and the most important platform for changing human behavior. While many studies have explored the usage of persuasive technologies in various behavior change scenarios such as health, sustainability, security, etc., rarely has research systematically explored the application of mobile technology to influence financial decision making in general and savings behavior in particular. This paper serves as a contribution to the limited body of knowledge in this domain. First, the theoretical background of savings behavior research is presented. Second, current academic research endeavours and industry products/services that can be classified as persuasive technologies and/or nudging interventions for increasing savings behavior are highlighted. Finally, the author’s ongoing work to incorporate behavioural research into the design of mobile persuasive technologies that encourage saving behavior is outlined.
Mr. Floyd Newsum is currently a Senior Solution Architect responsible for technical design of mobile banking solutions at one of the world’s leading multi-national banks. Prior to his current role, Floyd served as a Vice President at a regional (Asia) investment service provider with responsibilities for behavioral finance product development. In addition, he was employed as an Assistant Vice President at one of America’s leading financial institutions as a senior internal consultant for process improvement and business change initiatives. Floyd has over 10 years of experience as a technical project manager and has led the development of multiple award winning mobile apps which serve as platforms to collect behavioral finance data. Floyd is also currently a doctoral student attending the City University of Hong Kong. His research topic involves the behavioral science and influence of digital banking product design on consumer financial decision making (Persuasive Technology).