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Mobile nudging: Youth engagement with banking apps

Author

Listed:
  • Roel Wijland

    (School of Business, University of Otago)

  • Paul Hansen
  • Fatima Gardezi

Abstract

Mobile-banking (m-banking) is of particular interest to banks seeking to sustain their market share because of m-banking’s role attracting and retaining customers, especially young ones. This article reports on a study that applies concepts from behavioural economics (BE) and ‘nudging’ with the objective of promoting young people’s ongoing engagement with m-banking applications (that is, software designed to run on mobile devices, or m-banking ‘apps’ in common parlance). Insights and ideas for new features or refinements for m-banking apps were generated from discussions with a large class of senior marketing students, and then presented to m-banking managers and app designers to refine and to select two features for each of five constructs from BE: loss aversion, power of now, scarcity value, chunking and choice architecture. The relative desirability of these 10 m-banking features was investigated via a survey involving a pairwise-ranking exercise that was completed by 257 young m-banking consumers. Overall, the research reveals that m-banking app design can benefit from fundamentally different approaches (relative to traditional methodologies) that prioritise intuitive interfaces over non-intuitive-based designs, and, in particular, that BE and nudging can supply valuable insights and ideas for new features or refinements.

Suggested Citation

  • Roel Wijland & Paul Hansen & Fatima Gardezi, 2016. "Mobile nudging: Youth engagement with banking apps," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(1), pages 51-63, March.
    • Handle: RePEc:pal:jofsma:v:21:y:2016:i:1:d:10.1057_fsm.2016.1
    DOI: 10.1057/fsm.2016.1
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    References listed on IDEAS

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    1. Altman, Morris, 2012. "Behavioural economics perspectives: Implications for policy and financial literacy," Working Paper Series 2195, Victoria University of Wellington, School of Economics and Finance.
    2. Paul Hansen & Nicole Kergozou & Stephen Knowles & Paul Thorsnes, 2014. "Developing Countries in Need: Which Characteristics Appeal Most to People when Donating Money?," Journal of Development Studies, Taylor & Francis Journals, vol. 50(11), pages 1494-1509, November.
    3. Smith, Kevin F. & Fennessy, Peter F., 2014. "Utilizing Conjoint Analysis to Develop Breeding Objectives for the Improvement of Pasture Species for Contrasting Environments When the Relative Values of Individual Traits Are Difficult to Assess," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 3(2).
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    Cited by:

    1. Joseph Vella & Åsa Wallström & Mana Farshid, 2017. "Financial services Apps: What makes the difference between a great and a ghastly review?," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(3), pages 132-138, September.
    2. Mark McGillivray & Simon Feeny & Paul Hansen & Stephen Knowles & Franz Ombler, 2023. "What are Valid Weights for the Human Development Index? A Discrete Choice Experiment for the United Kingdom," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 679-694, January.
    3. Tiina Koskelainen & Panu Kalmi & Eusebio Scornavacca & Tero Vartiainen, 2023. "Financial literacy in the digital age—A research agenda," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 507-528, January.

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