Behavioral Economics

Behavioral Economics explores the psychological influences on economic decisions, aiming to develop strategies that lead to better financial outcomes.

Talk to Dominick Mitchell about our research

Understanding Human Behavior in Finance

Behavioral economics stands at the intersection of psychology and economic theory, offering insights into how people make financial decisions. Pecunia integrates these insights into the development of financial products and educational programs. Our approach emphasizes understanding cognitive biases and decision-making processes, which can profoundly impact financial behavior and market outcomes.

Nudging Towards Savings: A Success Story

The introduction of a “round-up” savings feature for a major banking client. This feature automatically rounds up transactions to the nearest dollar and deposits the difference into a savings account, simplifying the act of saving while aligning with users’ spending habits. The program saw a 50% increase in user savings rates within the first six months, demonstrating the effectiveness of subtle nudges in promoting financial health.

We apply behavioral economics to design interventions that help individuals and organizations make better financial decisions. These include nudges, financial literacy programs, and customized digital tools that make saving and investing more intuitive and effective. By aligning our strategies with natural human tendencies, we can significantly enhance the effectiveness of financial behaviors.

Furthermore, Pecunia collaborates with academic institutions and industry leaders to conduct research and develop new theories in behavioral economics that can be practically applied to increase financial well-being. Our initiatives not only educate but also implement real-world applications that demonstrate the power of thoughtful, behaviorally-informed financial planning.

Publications

The Psychological Underpinnings of Financial Decisions: Implications for Financial Products Design

Delve into the cognitive processes influencing financial decisions and the practical applications for creating more user-friendly financial products. By understanding these dynamics, financial institutions can design tools that better align with human behavior, leading to improved financial outcomes for consumers.

Central Themes

Decision-Making Biases: Exploring the common biases that lead to suboptimal financial decisions.

Risk Perception and Management: Analyzing how individuals assess and respond to financial risks.

Financial Behavior Change: Developing strategies to alter financial behaviors in beneficial ways.

Impact of Social Norms: Investigating how societal expectations shape financial choices.

Emotional Finance: Understanding the role of emotions in economic decision-making.

Nudging for Better Outcomes: Implementing subtle cues to guide better financial behaviors.

Metrics of Behavioral Change

Over the past five years, Pecunia has launched over 30 projects utilizing principles of behavioral economics, impacting over 200,000 individuals. Our team of 7 experts in psychology and finance has contributed to a measurable increase in financial literacy and improved savings rates among targeted populations. These initiatives have not only fostered healthier financial habits but have also informed policy recommendations for economic development at various governmental levels.

Explore partnering with Pecunia to leverage groundbreaking research in behavioral economics, enhancing the efficacy of financial services with scientifically-backed strategies.

Core Research Themes

Explore Our Impact

Core Research Themes

Explore Our Impact