In the past decade, behavioural science has gained traction in the public and private sectors by practically applying scientific insights into real-world situations with real stakes and outcomes.
To put it simply, behavioural science is the study of why we do what we do. It seeks to understand the ways we make judgments and decisions that inform our behaviour.
Part of the reason that this science has come of age in the past decade has had to do with respected academics publishing works that were accessible and relatable. In 2008, Richard Thaler and Cass Sunstein published their bestselling book Nudge, which started to shift the way we think about decision-making and choices.
The book centred on the concept of a "nudge". Nudges are subtle interventions based on the insights of psychology, economics, neuroscience and cognitive science that help determine customer choices.
An example of nudging has to do with the way options are presented. Research shows that in school cafeterias, students choose healthier food when it is presented at eye level and when it is the last thing they see in the checkout line. These subtle changes lead to different decisions.
Another example of a nudge has to do with retirement savings in the US. Richard Thaler, who won a Nobel prize for this, created a Save More Tomorrow programme which helped increase retirement savings by changing the way the options were presented. Instead of saving being an opt-in process (something you actively must choose) it became an opt-out process (something you actively must choose not to do). Behavioural science and nudging are about helping people make better decisions by better understanding the human experience, the brain and the complexity of modern life. Behavioural science takes people as they are and not as we imagine ourselves to be, a rational agent in charge of our choices.
At Standard Bank, we use behavioural science's composite parts to create services that lead to better outcomes for customers and staff. For example, we know how people behave when they are under financial pressure and how that negatively affects decision-making. Research has also shown how customers act when faced with uncertainty and that they will often make decisions based on the most relatable point of information. This has enabled us to make things simpler for customers as we know this can have significant effects on making financial services more inclusive.
We also know that there is a discrepancy between what people say motivates them and what motivates them. This enables us to create experiences and services that help ensure our staff are motivated and engaged by "gamifying" the work experience.
Neuroscience and linguistics also play a part in informing our development of inclusive services. By leveraging these insights, we are able to design digital font faces with specific colours and word combinations that align to what the brain is most sensitive towards; ensuring that we create easier and better digital customer experiences across our channels.
Behavioural science is about bridging the gap between academic insights and business practices. By applying this science, banks can better serve their customers while improving staff performance.
• Gottlich is a behavioural scientist at Standard Bank
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