Nudged to Win: Designing Robo-Advisory to Overcome Decision Inertia

Decision inertia is a serious problem in financial decision-making and thus a challenge for decision support systems. We discuss recent findings and review antecedents and consequences of decision inertia from a psychological perspective. We use these insights to develop IT-based methods designed to overcome decision inertia using psychologically optimized financial decision support systems. Furthermore, we propose an experimental study to evaluate the design features of such a system. Our work is a first step in designing adaptive decision support systems that detect situations in which the user is prone to decision inertia and react by adapting interface elements appropriately that might otherwise exacerbate decision inertia – for a specific user in a specific decision situation

Designing for Cost Transparency in Investment Advisory Service Encounters

Investment advisory services of financial service providers (FSPs) exhibit several characteristics that are detrimental to advisory quality. The interaction of advisor and client is strained by a lack of transparency regarding the advisory process (what activities are performed and why) and the information used therein (what information is used for what purpose and with what effect), as well as regarding the precise costs of the service and the recommended products. In prior research, we suggested that process and information transparency issues may be appropriately addressed with collaborative information technology (IT) artifacts. In this paper, we argue that collaborative, transparent artifacts may also be a premise of enabling cost transparency. To this end, we describe a complete research cycle of designing, implementing, and evaluating a shared cost-transparent IT artifact to support client-advisor interaction in investment advisory encounters. Evaluation results suggest the efficacy of our design in improving the clients' perceived cost transparency as well as increase their satisfaction and their willingness to pay for the received investment advice. These findings may also challenge the common belief of FSPs that transparent, fee-based advisory services would neither be accepted by clients nor be economically viable. Practical implications of these findings for designing advisory encounters with supportive IT are discusse

Designing Tablet Banking Apps for High-Net-Worth Individuals: Specifying Customer Requirements with Prototyping

Private banks with high-net-worth customers see a great potential in mobile information technology to provide more transparency in the advisory process. Previous literature has mainly focused on gathering requirements with regard to mobile banking applications targeted for retail customers or with regard to advisory services in physical proximity. This paper focuses on an mFAS which is designed for the private banking customer segment and facilitates location-independent customer relationships on a tablet. Furthermore, we specify previously established requirements with the Requirements Abstraction Model. In this study, we evaluated the requirements with a focus group involving seven domain experts. The results of this workshop suggest that most of the specified requirements meet the recommended practice for requirements specification. However, the experts only partly agreed that the presented requirements meet the completeness criterion, which guides future research endeavors

When a computer speaks institutional talk: Exploring challenges and potentials of virtual assistants in face-to-face advisory services

Advisory services are a highly sensitive form of collaboration: they rely on a clear distribution of roles between human participants who act according to an implicit set of practices and scripts. As such, they do not offer a specific role to a virtual assistant. At the same time, the technological improvements make the promise that institutional settings may be soon complemented with technology that allows for asking questions using natural speech, understands the context, and provides answers based on online processing of data. This article explores challenges and potentials of virtual assistants in advisory services while analyzing data from interviews and a workshop with clients and advisors from financial advisory services. It links the insights from the field with the institutional talk perspective. The findings unveil, that the concerns and hopes of potential users relate to their position and an implicit understanding of what an advisory service is about. This calls for careful and attentive design approach towards virtual assistants in advisory services

Secondary Mental Models: Introducing Conversational Agents in Financial Advisory Service Encounters

When introducing unfamiliar Artificial Intelligence (AI)-based systems, such as conversational agents (CAs), one needs to ensure that users interact with them according to their design. While past research has studied single-user environments, many practical settings involve multiple parties. This study addresses this gap and focuses on financial advisory service encounters and how mental models evolve in multi-party contexts. A multimodal interactive CA is developed and tested in financial consultations with 24 clients. The observations of these consultations and subsequent interviews provide insights into the challenges of using CAs in unfamiliar contexts. The clients have difficulties effectively using the system. This is linked to the institutional setting of financial advisory service encounters and a mismatch between the designer’s conceptual model and the client’s mental model, which we call secondary mental model

Secondary Mental Models: Introducing Conversational Agents in Financial Advisory Service Encounters

When introducing unfamiliar Artificial Intelligence (AI)-based systems, such as conversational agents (CAs), one needs to ensure that users interact with them according to their design. While past research has studied single-user environments, many practical settings involve multiple parties. This study addresses this gap and focuses on financial advisory service encounters and how mental models evolve in multi-party contexts. A multimodal interactive CA is developed and tested in financial consultations with 24 clients. The observations of these consultations and subsequent interviews provide insights into the challenges of using CAs in unfamiliar contexts. The clients have difficulties effectively using the system. This is linked to the institutional setting of financial advisory service encounters and a mismatch between the designer’s conceptual model and the client’s mental model, which we call secondary mental model

Is an App Better than an Email? Developing Trust in a Mobile Financial Advisory Service - Design and Evaluation of a Prototype

Private banks see great potential in digital technologies for engaging with clients. Both practitioners and researchers believe that digital technologies, such as mobile applications, increase transparency in the advisory process and consequently raise trust, satisfaction and customer loyalty. This study proposes 5 design requirements (DR) for developing trust in a mobile financial advisory service. A first prototype was designed following the proposed DR. In addition, we conduct an experimental evaluation with 34 participants and compare the prototype with email communication. The findings provide mixed results on how a mobile application, designed according to the proposed DR, could increase trust and intention to use. With regard to overall satisfaction, the app was favored over email communication

Why do you ask all those questions? Supporting client profiling in financial service encounters

Client data is key to provide personalized services and products. Therefore, banks go through great efforts to profile their clients during financial advisory service encounters. Since traditional pen-and-paper profiling does not satisfy the banks’ needs, they strive to digitalize this activity. This paper offers joint profiling as a solution: The advisor and the client jointly create a client’s profile using a shared display. However, test clients provided a mixed response to a first joint profiling prototype. They wondered, why the bank needs all this information. In a second iteration, joint profiling was augmented by task awareness, i.e., linking all profiled information to the client\u27s goal. This task aware joint profiling was far better accepted by the clients. This paper offers research insights on the role of profiling in face-to-face advisory service encounters, on its acceptance by the clients, and on design principles for digital profiling in financial service encounters

Learning with facilitation affordances: The case of citizens’ advice services

How can employees be qualified to provide sound customer advisory services? How can they be empowered to deliver the value of public sector modernization to customers? In this paper, we offer a novel approach to qualify service personnel on-the-job using “facilitation affordances”. In this approach, artifacts, providing appropriately designed facilitation affordances, are introduced into service personnel’s work practices. These facilitation artifacts invite them to start experiential learning, and, hence, to improve their advice giving behavior. To develop our approach, we followed a design research approach, here we developed a set of design requirements and, ultimately, five design principles for facilitation artifacts. We tested our approach in the context of citizens’ advice services in public administrations. We implemented a prototype facilitation artifact and conducted a user study with six real-world advisors and twelve clients. Our preliminary results show that the “learning with facilitation affordances”-approach promises to enhance the service personnel’s skills that matter in modern public administrations. Furthermore, with the proposed qualification approach and the design principles for facilitation artifacts, we seek to deepen the knowledge on the importance of affordances for learning and, concurrently, provide practitioners with useful guidelines to implement the “learning with facilitation affordances”-approach in their organizations