Switching to Better Value Financial Products

In a research programme funded by the Department of Finance, we are designing and testing interventions to boost consumers’ capability to switch to better value financial products.

The results of our first study (report forthcoming) revealed that most people do not shop around when initially choosing a financial product but propensity to do so is a better predictor of later switching than financial savviness. Results also showed that consumers are motivated to switch primarily by financial gain but are inhibited by switching hassle and low confidence in their ability to switch. We will conduct a second study in late 2022. It aims to identify ways of framing switching information that are most effective in engaging people with advice and the switching process, and boosting comprehension and confidence.

Results will inform the design of interventions to be pre-tested with further online experiments and field trials.