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𝗪𝗵𝘆 𝗲𝘃𝗲𝗿𝘆 𝘁𝗿𝗶𝗽 𝘁𝗼 𝗠𝗲𝘅𝗶𝗰𝗼 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗮 𝘃𝗶𝘀𝗶𝘁 𝘁𝗼 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸 𝘄𝗶𝘁𝗵 𝗺𝘆 𝗺𝘂𝗺

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I love visiting my mum in Mexico. However, one part of these trips that I don't enjoy is becoming her 'banking companion'. Every trip, I invariably go to the bank with her, painfully observing her queuing, and requesting a task that could be performed through the banking app 😨 Trying to convince her to use the app? Believe me, I have tried! My mum isn't alone in this struggle. Two-thirds of unbanked adults around the world have mobile phones, highlighting a mismatch between innovation and impact.  Several demographic factors influence inclusion in digital financial products, such as socioeconomic status, gender, and education. For example, women in Latin America have lower ownership of debit cards because men traditionally managed finances. Additionally, older people face unique financial and technological challenges compared to younger adults. Talking to my mum and gathering more external evidence, I identified three main issues preventing her from using the app and p

From smiley faces to stock markets: The Bandwagon Effect explained

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In the late 90s, smiley face fashion became a widespread trend, with people buying and wearing clothing and accessories adorned with the iconic yellow smiley face logo 🙂 For a rebel child like myself, this trend didn't really suit me well, but I was carried away by its popularity. Despite never really liking them, I begged my mother to buy me smiley face t-shirts, lunch boxes, and more. Looking back, I still don't like them, not even for a pyjama top! So why did I desperately want them back then? As a behavioural scientist, I'd blame the Bandwagon Effect. The Bandwagon Effect refers to our habit of adopting certain behaviours or beliefs simply because many other people do the same. This phenomenon is often observed in consumer behaviour and political settings. The Bandwagon Effect is a specific instance of herd mentality, which is a broader term describing how individuals in a group can act collectively without centralized direction. Here are some examples of the Bandwago

Behavioural steps to overcome insomnia

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A few years ago, I experienced a spell of insomnia that turned my life upside down. Having always been a good sleeper, this sudden change felt like a nightmare. If you've ever dealt with insomnia, you know how debilitating it can be. Waking up in the middle of the night with my heart pounding, unable to go back to sleep, and rolling from one side to the other was exhausting and frustrating. This period of my life was particularly stressful, and in my desperation, I tried several herbal remedies and over-the-counter drugs. Nothing seemed to work until I found a book that completely changed my approach. Colin A. Espie's "Overcoming insomnia and sleep problems: A self-help guide using cognitive behavioural techniques" was transformative for me. I highly recommend this book to anyone struggling with insomnia or simply looking to improve their sleep quality. Here are some key points from Professor Espie that I found most helpful: 1. Establish a pre-bed time routine: Develo

How does hyperbolic discounting affect financial well-being?

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One key concept in behavioural science is hyperbolic discounting , a topic I've written about in the past and on which I focused my Ph.D. Hyperbolic discounting is our tendency to focus more on immediate rewards, than on those in the distant future. This bias helps explain why people spend money on an expensive holiday rather than saving money for future needs. Here are three examples of how hyperbolic discounting affects our financial well-being: 1. Impulsive buying: We might display a pattern of overspending on things we don't need because the immediate joy feels more rewarding than the abstract idea of saving for the future. This impulsive behaviour can lead to unnecessary expenditures and debts. 2. Difficulty maintaining long-term financial goals: Hyperbolic discounting often causes us to prioritize immediate gratification over long-term financial goals. For instance, we may choose to go on a fancy vacation instead of investing that money in our pension. This makes it cha

Behavioural principles applied to financial services

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When I was a child in Mexico, Sundays were special not just because of family gatherings but because my grandfather would give us a small amount of money, a practice known as 'Domingo.' Although this was intended to teach us the value of money, it never explained the concepts of saving or effective financial management. Fast forward to my teenage years: I landed my first job and, soon after, got my first credit card. Within six months, I was buried in debt, a situation so dire that my father had to intervene, regretting that he hadn't taught me proper financial habits. Today, as an adult who only started saving and investing a few years ago, I've realized that my story isn’t unique. In the UK, three quarters (73%) of the population fall below the financial literacy benchmark. In Mexico, the scenario is even grimmer, with 65% of the population spending more than they earn, a direct result of inadequate financial literacy. This gap in financial literacy is not only detrim

Behavioural insights into personalized services

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Opening my banking app to see personalised budget tips or having my fitness app adjust to my progress shows just how great and useful personalisation can be. However, getting Taylor Swift recommended every day because I listened to ONE song isn't ideal -nothing against Taylor, but this kind of repetitive suggestion can lead to information fatigue, especially when it feels like she's everywhere! When applied correctly, personalisation can be incredibly effective. We, behavioural scientists, have long claimed that people are more likely to respond positively when they feel they are being addressed as individuals and when their needs are empathized with. For instance, in a previous discussion on my blog, I explored how personalisation could better engage users in financial services.  Personalisation uses historical data to tailor services to individual needs, making each interaction more relevant and engaging. However, as we increasingly rely on this technology, it's crucial

Considering the switch from academia to industry?

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I'm often asked about how I transitioned from academia to industry. My career started in the fields of Psychology and Behavioural Neuroscience, where I completed a PhD and spent years as a lab researcher working with rodents. Even though I was successful enough to be named one of Forbes' 100 Most Influential Women in Mexico, I realized in 2019 that my dream of having my own lab might not happen. This made me look for new opportunities. Leaving my academic career was scary, but it also started a new journey full of learning. If you're thinking about making a similar move, here are some insights from my experience: - Leaving academia is not a failure: It took me several reminders that moving on to something new is a step forward, not backward. - Academia is not the only career option: I started my PhD with a single goal in mind: leading my own lab. It was only later that I discovered the opportunities available outside academic research. Your skills are valuable in many oth