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Behavioral Design Guide: A Financial Health Approach to Credit Card Products

Learn how to design credit products that address consumer challenges and improve financial health outcomes by applying proven behavioral science techniques.

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By Hannah Gdalman, Heidi Johnson, Zaan Pirani

Thursday, May 11, 2023
Behavioral Design Guide: A Financial Health Approach to Credit Card Products
The Challenge

How Revolving Credit Card Debt Impacts Customers and Providers

Millions of people struggle to keep up with revolving balances on their credit cards. This leads to a cycle of ongoing debt that weakens financial health for consumers and increases charge-offs for providers.

How Revolving Credit Card Debt Impacts Customers and Providers
The Opportunity

Create Credit Products that Improve Financial Health

Designing credit products that improve financial health for your customers will help build long-lasting customer relationships and create a foundation for sustainable long-term growth for your business. Customers who believe their financial institution supports their financial health are:

    • 3X more satisfied
    • 3X more likely to refer a new customer
    • 5X more likely to buy additional products and services
Get Started

Behavioral Design for Credit Card Product Managers

Behavioral science is a powerful tool for institutions to support broader equity strategies, deliver effective products at a low cost, and unlock better business and customer outcomes. This guide offers credit card providers:

    • Insight into the behavioral science principles shaping credit card usage
    • Specific recommendations for designing behaviorally-informed credit products
    • Real-life examples of successful behavioral design in credit products to jump-start innovation

Behavioral Design in Action: Payment Amounts

Nearly a quarter of consumers who make minimum payments toward their credit card balances do so because of anchoring, in which the minimum payment pulls down the amounts people choose to pay. However, an online study showed that people paid 76% more when the current balance was included among a credit card’s payment options. Because the current balance is usually higher than the statement balance, simply adding this option can adjust the anchor and encourage customers to make larger payments. 

By understanding what drives consumer decisions, credit card providers can design products that work with cognitive biases and mental shortcuts to promote financially healthy decision-making.

Our Supporter

This guide is made possible through the generous support of MetLife Foundation, a founding supporter of our financial health work.

Explore Our Behavioral Design Guides

Our Behavioral Design Guide series compiles rigorous research to provide product managers, designers, and strategists with a behavioral framework for building financial health products. Read other guides from the series here.

Written by

Heidi Johnson

Heidi Johnson

Senior Director, Behavioral Economics
Financial Health Network
Hannah Gdalman

Hannah Gdalman

Manager, Financial Services Solutions
Financial Health Network
Zaan Pirani

Zaan Pirani

Manager, Financial Services Solutions
 

Behavioral Design Guide: A Financial Health Approach to Credit Card Products

Explore the trends. Discover new insights. Build stronger strategies.

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