Boosting credit repayments
- 2016
Challenge
Almost one in four adults in the UK are financially squeezed. New thinking is needed to help more people make the most of their money.
Insight
People’s decisions are often influenced by the initial information they get. This is known as anchoring.
A repayment ‘slider’ image in a credit card statement (showing how different levels of repayment would affect the person’s balance) can help to overcome the anchoring effects of minimum repayments.
Approach
The Financial Capability Lab used BIT’s online experimentation platform, Predictiv, to understand financial behaviour and rapidly test ideas that could improve decision-making.
Result & Impact
All variations of the slider interface significantly increased repayment rates.
Example of slider with thumb indicating minimum repayment
Example of slider with thumb indicating higher repayment
