The Center for Financial Inclusion at Accion has released extensive new research funded by JPMorgan Chase & Co. on the current state of financial-capability building - that is, how providers help to prepare and support customers to make sound financial decisions.
Highlighting a trend in its early stages, "A Change in Behavior: Innovations in Financial Capability" explores innovations from around the world that focus on triggering positive customer behaviors, especially at critical decision-making moments, such as when clients sign up for and use financial products, or when they are prompted to put money aside to meet savings goals.
The research identified seven behaviorally informed practices that show great promise in affecting changes in behavior. It also found that major redeployment of resources is needed to ensure that the millions of dollars spent on building consumer capability yield substantial benefits. It recommends six major changes in resource deployment and approach. The top recommendation is to enable financial-service providers to take a greater role in building financial capability.