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Mobile nudging: Youth engagement with banking apps

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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.

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Authors and Affiliations

  1. School of Business, University of Otago, Clyde Street, Dunedin, 9054, New Zealand

    Roel Wijland

Authors
  1. Roel Wijland
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  2. Paul Hansen
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  3. Fatima Gardezi
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Corresponding author

Correspondence to Roel Wijland.

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3has recently completed her Masters of Business degree at the University of Otago.

Appendix

Appendix

Table A1

Table A1 Questions asked in the exploratory phase for the five BE constructs for generating insights and nudging ideas for m-banking features
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Wijland, R., Hansen, P. & Gardezi, F. Mobile nudging: Youth engagement with banking apps. J Financ Serv Mark 21, 51–63 (2016). https://doi.org/10.1057/fsm.2016.1

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  • DOI: https://doi.org/10.1057/fsm.2016.1

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