What is Healthy Financial Habits? 💸

The Healthy Financial Habits tool helps consumers stay
within budget on the basis of their personality. The tool, which is based on the insights
of behavioral economics and personality psychology, implements the strong
relationship between people’s spending and personality.

The algorithm compares consumers’ active spending categories with their personality. Based
on this comparison, suggestions for feasible savings are generated. As the proposed
savings match the customers’ personalities to a lower (or higher) degree, the
potential success of realising these personalised savings insights, can be expected to
be high.

The Center for Applied Product Personality Research developed this tool together with Jan Schoormans, professor
of consumer behavior at TU-Delft in The Netherlands. We have combined
his decades of research in the field of consumer psychology with recent research by
the University of Cambridge (Matz et al.). The psychological models we apply in
HFH​t have proven to be stable across cultures.

In addition to its relevance and value for the end consumer i.e. financial and
psychological well-being, this tool can also help financial institutions better comply to
their duty of care towards their customers and generate tailored recommendations
through better understanding their financial behaviour. Finally, the technology
can, because of the stability of its models be deployed at scale and with ease in
personal finance management apps.