With rapid advances in digital technologies, it’s easier than ever to track physical activity levels, dietary intake and sleep patterns.
Wellness improvement technologies have also made it simpler for individuals to exercise from the comfort of their home and keep up with workouts without a gym membership. Incentives can also help drive program participation rates.
Financial institutions that offer behavioral finance solutions need to first consider how this type of service fits with their business and operating models. If this type of approach can be successfully implemented, then it will help them to deliver better financial outcomes and a better customer experience.
Behavioral finance is the study of how people make decisions that impact their finances and the economy. It can be used to understand the main biases in decision making, including self-serving bias, hindsight bias, and anchoring bias. It can also be used to improve investment behavior and enhance the overall financial wellness of customers. Behavioral finance is often targeted toward ultra-high net worth individuals, but can be utilized for standard retail customers as well. Arthur D. Little research has identified a wide range of behavioral finance solutions that vary in their approach, which could include rebalancing portfolios, improving financial literacy, or incorporating new cognitive frameworks into risk assessment.
Diet, exercise, and medication have long been a staple in many people’s quest to achieve optimal mental health and wellness. But as technology advances, more non-invasive solutions have been developed that provide real benefits.
Some fitness and wellness technologies are expensive, which can be a barrier for some consumers. However, some programs and software offer a value proposition budgeting tool that helps people track their expenses while remaining within their desired income range.
Another trend in wellness is telemedicine, which provides remote access to healthcare professionals. This can include online doctor consultations and virtual therapy sessions. This type of wellness program can be especially useful for those with limited time and availability.
Finally, virtual reality workouts are a fun way to stay in shape. These programs allow users to experience simulated environments while performing exercises, like on beaches or forests. They can also help reduce stress levels and increase focus. They can also be a great motivating factor for those who struggle to find the motivation to work out on their own.
A number of studies have shown that financial education is able to positively influence finance behavior. The effect sizes from these studies are comparable to those realized by behavior-change interventions aimed at fostering health-related behaviors or energy conserving behavior. In addition, the research reveals a notable relationship between financial education and financial cognition, suggesting that the theory of internal fit is supported. This is a significant finding given that many individuals struggle with complex financial concepts.