This document discusses how behavioral economics can be used in open banking to help frame customers' and employees' financial decisions. It notes that money triggers emotional responses in the brain and that humans tend to make better long-term than short-term decisions. Various cognitive biases that affect financial decisions are described, like loss aversion and confirmation bias. Examples of startups using behavioral insights are provided. The importance of chief behavioral officers and "nudge units" that design solutions based on behavioral economics for open banking is discussed.

1. SECRET WEAPONS
ALIREZA RANJBAR SHOURABI
@ARSHOURABI

2. I HELP BUSINESSES
CHANGE THE BEHAVIOR OF THEIR
CUSTOMERS AND EMPLOYEES
2

3. WHAT IS THE MAIN PURPOSE OF
OPEN BANKING?
3

4. YOU KNOW THIS SIDE
4

5. GIVING PEOPLE MORE OPTIONS
TO MOVE, MANAGE AND MAKE MORE OF THEIR MONEY
5

6. 6
More
Options
More
Freedom
More
ERRORs
?

7. HOW WE REALLY DECIDE?
LOGIC VS. EMOTION
7

8. MONEY
IS AN EMOTIONAL THING!
8

9. RELATED TO MONEY & HEALTH
HUMANS TEND TO MAKE BETTER DECISIONS
FOR THE FUTURE THAN THEY DO FOR TODAY.
9

10. SPENDING MONEY
LIGHTS UP THE SAME AREAS IN BRAIN AS
PHYSICAL PAIN!
10

11. PREDICTING USER BEHAVIOR WITH
“ABSOLUTE CERTAINTY”
WE CANNOT
11

12. BUT WE CAN
HELP THEM FRAMING THEIR FINANCIAL DECISIONS
BY UNDERSTANDING HOW CHOICES ARE MADE
12

13. BEHAVIORAL ECONOMICS
THE STUDY OF HOW AND WHY WE MAKE
DECISIONS
13

14. 14
More
Options
More
Freedom
More
ERRORs

15. HEURISTIC & BIAS
RULE OF THUMB, MENTAL SHORTCUT,
COGNITION
15
TIME AND EFFORT REDUCTION

16. AFFECT HEURISTIC
16
Errors caused by our brain

17. COUNTERFACTUAL THINKING
17
Errors caused by our brain

18. OPPORTUNITY COST
18
Errors caused by our brain

19. CONFIRMATION BIAS
19
Errors caused by our brain

20. MENTAL ACCOUNTING
20
Errors caused by our brain

21. LOSS AVERSION
21
Errors caused by our brain
SUNK COST

22. AVAILABILITY BIAS
22
Errors caused by our brain
HALO EFFECT
BANDWAGON EFFECT
OPTIMISM BIAS
ATTENTIONAL BIAS
…

23. WHO ARE AWARE OF THESE?
23

24. EARNUP
24
Sample

25. LEMONADE
25
Sample

26. ACORNS
26
Sample

27. TINK
27
Sample

28. MERRILL LYNCH
28
Sample

29. –Heraclitus
“There is nothing permanent except change.”
29

30. FINANCIAL INDUSTRY WILL
SURVIVE THE DISRUPTION?
30
DO YOU THINK

31. BE SUGGESTS A WAY!
31

32. CBO
CHIEF BEHAVIORAL OFFICER
32
NUDGE UNIT
DESIGNING HUMAN-FOCUSED SOLUTIONS
BASED ON BEHAVIORAL ECONOMICS

33. 33
Human-
Focused
Persuasive
Design
Psychology
Experimental
Design
Data
Analysis
NUDGE UNIT

34. DELOITTE
KEY INNOVATIONS FOR 2020
• AI and Cognitive opportunities
• Blockchain and DLT
• Robotic process automation
• Cyber security
34

35. BIG PLAYERS
(WITH NUDGE UNIT)
• Barclays
• BBVA
• PNC bank
• Bank of America
35

36. IN MY OPINION
OPEN BANKING WITHOUT USING
BEHAVIORAL ECONOMICS
WILL DO NO GOOD!
36

37. START BEFORE IT IS TOO LATE!
37

38. THANK YOU!
ALIREZA RANJBAR SHOURABI
@ARSHOURABI