Research and publications

Digitising investing in the light of behavioural finance findings

Investing is still very much the least digitised banking service. All too often, digitisation boils down to cold automation, which explains why digital conversion rate ...

Author(s) :

Jurgen Vandenbroucke

Summary :

Investing is still very much the least digitised banking service. All too often, digitisation boils down to cold automation, which explains why digital conversion rates are well below those at a branch. This paper discusses that, in order to be successful, the process needs to (over)compensate the lack of human encouragement in a digital context.

In this paper, the author demonstrates how behavioural finance enhances the business value of digital investing. Use cases illustrate the power of insights from behavioural economics such as framing, nudging and refined investor profiling. We propose three important metrics to guide the digitisation of investing: conversion, rejuvenation and retention.

Type : Academic Publication
Date : 03/05/2021
Keywords :

Journal of Digital Banking, Volume 5, Issue 4.