MADISON, Wis.-That members and consumers don't always act rationally when it comes to their finances is well-known to any credit union executive. Recognizing that, the Filene Research Institute has published online a new study, "Committed to Savings: Using Behavioral Economics to Motivate Members," that it says seeks to explain how the field can be used to motivate consumers.
The study is authored by Yale Professor Dean Karlan, and is free to Filene members and member institutions. It was released in conjunction with an "Images Matter" webinar.
In 2008, Filene's i3 group piloted a product idea entitled Online Goal Setting, which was inspired by behavioral economic theory. A small group of credit unions beta-tested this concept with help from an organization called stickK.com. The brainchild of this report's author, stickK.com is the application of a truly innovative idea called "commitment devices" or "commitment contracts," according to Filene. Commitment contracts essentially allow people to take a contract out on themselves to spur some sort of positive activity: to stop smoking, lose weight, or save more money.
For info: www.filene.org.
