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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.
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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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