Regulated firms can give customers clear guidance on money and still see low take-up when anxiety, complexity, or friction gets in the way.
On Regulated Digital, Philip Courtney, founder of Humans and Money, explains how behavioural science can help firms design customer journeys that reflect how people actually decide, not only what looks rational on paper.
Philip Courtney specialises in investor psychology, with financial-sector experience and a recent PhD on attitudes to money. The sections below cover emotional drivers of financial decisions, attitude-intention and intention-action gaps, the SHAPE framework for journey design, research methods that surface friction, compliance as a design partner, and why outliers matter for vulnerable customers.
The episode covers behavioural gaps in financial decision-making, practical journey mapping, research methods, Consumer Duty implications, and testing before scale.
Created from episode transcript
What Drives Our Money Decisions?
Many well-intentioned individuals rarely do what is best for their long-term financial health, even when they understand the advice.
Money choices are often driven by emotions such as fear, uncertainty, or the desire to avoid complexity, rather than a calm comparison of options.
"When we think about regulated industries - especially financial advice, investing, and saving - people often feel anxious or overwhelmed. These are complex topics, so it's no surprise we end up with a mix of worry, confusion, and fear."
For regulated businesses, the practical question is where those drop-offs happen and what commercial or compliance impact they carry.
Where to Begin With Customer Journeys
For businesses hoping to shape behaviour, Courtney suggests a repeatable framework he calls the SHAPE method (Scope, Highlight, Apply, Prove, Embed).
He focuses first on scoping by asking simple questions:
• Which specific behaviours do we want customers to adopt?
• Where are customers dropping off - and why?
• What commercial impact do these behaviours have?
Rather than dive into shiny tools, the starting point is mapping out desired customer behaviours and looking for gaps in the existing process.
Insights That Truly Matter
Companies often sit on mountains of data but struggle to turn it into actionable insights.
The next step is to highlight the real friction points customers face and then apply the right research methods to uncover them.
Qualitative Interviews
Structured discussions can reveal hidden emotional drivers, but it is essential to frame questions carefully to avoid biased answers.
Observational Data
Look at what customers do (rather than just what they say) to predict future actions.
Past behaviours are a big indicator of future ones.
A/B Testing and Prototypes
Create small experiments to see how customers respond in real life.
Behaviour is a solid unit of measurement when the research question is clear.
"There's plenty of data, but if you don't know what problem you're solving, it's useless. Start with a specific question, then pick the right data to answer it."
In regulated sectors, compliance can be a barrier - or a powerful ally.
Involving compliance teams early helps avoid building experiences that clash with a firm's culture and appetite for risk.
"They're experts in their field. Bring them in at the start so you don't build an experience that goes against your firm's culture and appetite for risk."
This collaborative approach is especially relevant as the Financial Conduct Authority's Consumer Duty places more responsibility on businesses to make sure customers understand and use the products offered.
Firms now have to test whether people truly understand fees, are reading documents, and feel empowered to take the right next steps.
"Consumer Duty pushes companies beyond just providing information; they have to check it's landing and leading to good outcomes."
Journey design also has to account for how customers receive and respond to regulated communications, not only what appears inside a portal or form flow.
"Mapping drop-off points in a digital journey is useful, but firms also need to ask whether the channel itself still fits. Email remains the default route for many regulated updates, so friction in how messages are opened, read, and replied to affects outcomes as much as form design."
When looking at data, many organisations zero in on averages, but the outliers can be revealing.
"If 90% of people read a crucial document, that sounds great, but what about the 10% who didn't? That group could include vulnerable customers who need extra care."
That loop is an essential part of delivering better digital experiences.
The SHAPE framework ends with embedding what works, so improvements survive beyond a single project or pilot.
How to Embed Better Customer Journey Design
The final step is to embed what you have learned into your process to make improvements long-lasting.
When asked for final thoughts, Courtney highlighted simple but critical steps.
Define the Goal: Know exactly which behaviour you want to change.
Pick the Right Data: Gather only what answers your question.
Test in the Real World: See what people do, not just what they say.
Don't Forget Compliance: Involve people who could present potential challenges early to avoid later hiccups.
Review Outliers: Pinpoint areas where vulnerable or anxious customers get stuck.
All these steps come back to Courtney's focus on helping real people make better decisions about their money.
FAQs
What Is Behavioural Science in Finance?
Behavioural science in finance studies how people actually make money decisions, looking at biases, emotions, and social factors that influence choices.
Why Involve Compliance Early?
Bringing compliance in from the start helps shape customer journeys that meet regulatory standards and fit your organisation's culture.
How Do I Know Which Data Matters?
Start with a clear question.
If you need to reduce account drop-offs, for example, track which parts of the sign-up process people abandon.
What Is Consumer Duty?
The FCA's Consumer Duty sets higher standards for financial firms to make sure customers understand products, receive fair value, and achieve good outcomes.
Why Focus on Outliers?
Outliers often reveal where the biggest problems lie, especially for vulnerable customers who may have trouble navigating complex processes.
Sam Kendall works on digital marketing at Beyond Encryption, helping build B2B marketing activity around research, first principles, and sustainable growth. He writes about marketing effectiveness, positioning, customer communications, and digital culture, with longer-form work published at ATNL.
Sam Kendall
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