Redirigiendo al acceso original de articulo en 23 segundos...
ARTÍCULO
TITULO

An application of behavioural finance in banking: The Discovery Bank case

Liam Hyland    
Avani Sebastian    
Yudhvir Seetharam    

Resumen

AbstractOrientation: Behavioural finance research suggests that human biases can cause irrationalities which have a significant impact on decision making. Discovery Bank is an organisation that attempts to apply behavioural finance to improve the financial health of its clients.Research purpose: This study attempts to determine the extent to which the Discovery Bank business model is grounded in behavioural finance theory.Motivation for the study: Discovery Bank is the first bank to leverage behavioural insights to improve personal financial decisions.Research approach/design and method: This study followed an explanatory case study methodology with primary data sources being interviews with key employees, academic research and electronic artefacts. The Discovery Bank business model was evaluated against the behavioural finance theoretical framework to establish the extent to which it conforms to behavioural finance theories.Main findings: The Discovery Bank business model is grounded in behavioural finance theory to a significant extent, with emphasis on modifying the behaviours that inhibit financial well-being. The bank generally uses incentives rather than nudges as behaviour modification tools.Practical/managerial implications: Whilst behavioural finance continues to attract substantial attention in finance research, its practical implications for the banking industry and personal finance are largely unexplored. Furthermore, the study contributes to the literature by examining the behavioural finance theoretical framework in the context of the banking and the broader financial services industry.Contribution/value-add: This research may be of value to practitioners in the financial industry as it explores a unique business model. Researchers on behavioural finance may find value in the practical application of the theoretical framework.

 Artículos similares

       
 
Dulani Jayasuriya Daluwathumullagamage and Alexandra Sims    
There is considerable hype about blockchain in almost every industry, including finance, with significant investments globally. We conduct a systematic review of 851 records and construct a final article sample of 183 for the sample period 2012 to 2020 t... ver más

 
N. S. Nanayakkara,P. D. Nimal,Y. K. Weerakoon     Pág. 101 - 108
Neoclassical asset pricing is built on the premise investors are rational and there are unlimited arbitrage opportunities. Behavioural implications of irrational investors led to the development of the counter paradigm, behavioural asset pricing. This st... ver más

 
Yudhvir Seetharam,Jesse A. Da Cunha    
AbstractUnderstanding the stock market?s reaction to secondary equity offerings (SEOs) is vital for managers who are commonly tasked with deciding on how to finance their firm?s operations. This study investigated the short-run performance of firms condu... ver más

 
Mydhili Virigineni,M. Bhaskara Rao     Pág. 448 - 459
Investors need not be rational for markets to be efficient. The axiom of efficient market hypothesis that it is not possible to earn excess profits because the available information gets factored in instantaneously fell flat due to influence of human beh... ver más

 
Jimmy Melo     Pág. 165 - 187
In scenarios of increasing pessimism, arbitrageurs affect processes by inducing a recuperation in demand for a risky asset (demand effect) or as a result of their capacity to transfer resources to scenarios of scarce liquidity (the liquidity effect). If ... ver más