What does it take to change people’s financial behaviors for the better? Mondato explains in this article how financial services providers are increasingly relying on a tactic called ‘nudging.’ The article features Juntos as an example of how nudging, when combined with other engagement strategies and innovative technology, can help close the trust barrier between customers and their institutions.
So what exactly is nudging? Nudging is a behavioral design concept which emphasizes positive reinforcement and indirect suggestions building on existing behavior to influence decision-making. The Mondato blog asserts that nudging can be far more effective and cost-efficient than traditional financial incentives or penalties. Heavy-handed nudging done in isolation, though, may cause fatigue effects that decrease customer engagement
“Inherently, nudging requires a longer-term strategy with other communications layered under it… Promotions can be really effective, especially done with the right customers at the right moment, but they have to be a part of a longer-term strategy rather than as a silver bullet.” Jack Parker, Senior Client Services Manager at Juntos
Here at Juntos, we believe that long-term, warm conversations build trust and engagement with customers. Once this foundation is built, Juntos incorporates nudging, along with a range of other techniques, to influence positive financial behavior change.
You can read the full article here.