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Labeling Financial Product

Sharing a research about using Interactive Information Labels to Assist Decision Making Under Uncertainty: The Case for Long-term Saving.

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Abstract:Product information labels can help users understand complex information leading them to make better decisions. One area where consumers are particularly prone to make costly decision-making errors is long-term saving, which requires understanding of complex concepts such as uncertainty and trade-offs. While most people are poorly equipped to deal with such concepts, interactive design can potentially help users make better decisions. We developed an interactive information label to assist consumers with retirement saving decision-making. To evaluate it, we exposed 382 users to one of three user interface conditions in a retirement saving simulator where they made 35 yearly decisions under changing circumstances. We found significantly better ability of users to reach their goals with the information label. Furthermore, users who interacted with the label made better decisions than those who were presented with a static information label. Lastly, we found the label particularly effective in helping novice savers. 

Written by Gunaratne, Junius, and Oded Nov. "Using Interactive Information Labels to Assist Decision Making Under Uncertainty: The Case for Long-term Saving." n.d.: n. pag. Web. <https://arxiv.org/abs/1507.04961>.

What is a provocation or insight that might inspire others during this challenge?

Financial products and services frightens a majority of people due to those heavy terminologies. It will be super helpful to breakdown the ingredients for financial products. Then labels them like we do to for food. It should be easier to read and understand, like we shop for our groceries.

Tell us about your work experience:

Angela had 3 years as a stock broker at an international online brokerage firm on Wall Street. She is currently pursuing her master degree in Integrated Digital Media at New York University.

Specifically, please check all that apply:

  • I'm not currently involved in a credit union, but am curious to learn more!

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Photo of Kate Rushton

Hi AngelaW!

It would be great to see this idea in the ideas phase. 

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