Original text here from Patrice Bernard (LinkedIn)
Most financial institutions agree on their role in their clients' essential ecological transition, but they usually limit themselves to statements of intent and other generic directives. Taking a more advanced approach, CommBank is exploring the use of behavioral science to encourage clients to take action.
Studies worldwide tend to reach the same conclusion: after excluding both the hardcore skeptics and, at the other extreme, the already convinced who leave no stone unturned, a vast majority of citizens generally support adopting responsible behaviors. However, they either claim they don't know how to go about it or aren't ready to spontaneously change their habits. For them, the only solution is close guidance.
The fundamental obstacle is a constant in human psychology: a preference for inertia, torn between fear of the unknown and conserving energy (ironically echoing today's topic). Since the same mechanisms affect people's relationship with money, as evidenced by difficulties in adopting sound budgeting practices, CommBank believes that similar solutions could overcome these barriers.
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CommBank is a pioneer in introducing behavioral science into its core operations. It established a dedicated team, BeSci, in 2016 and has since delivered concrete, successful projects like its "Benefits Finder" platform for discovering grants and subsidies or small adjustments to mortgage repayment options based on "nudge" theory.
Clearly, as Richard Thaler himself, the "inventor" of the concept, emphasizes, these nudges that subtly guide individual decisions won't single-handedly solve the climate crisis, but they will play a decisive role in the enormous battle ahead by almost systematically tipping the scales toward environmentally positive choices in everyday life.
CommBank's exploration of this concept is still in its early stages. They are specifically collaborating with a Harvard University research lab on this topic, and the BeSci team has officially integrated CSR themes into its mission to implement emerging ideas. Given the progress achieved in financial well-being through this approach, there is reason for optimism. This positions CommBank as one of the most committed and advanced banks in its environmental engagement, particularly in guiding its customers.
