Underpinned by behavioural science
Behind the design of the tool, INFLUENCE AT WORK identified the psychological drivers underpinning ‘hyped investments’ and ‘fear of missing out’, or FOMO. The team then conducted a literature review and in-depth qualitative interviews with real-life UK retail investors to assess two potential designs. A large-scale quantitative experiment followed with over 600 retail investors testing the tool’s effectiveness in reducing high-risk investments, both immediately and seven days later. They tested three potential interventions, one of which was revealed as the most impactful: training.
Communications consultancy MHP Group designed the look and feel of the tool. Those taking the quiz can add their name or an avatar and choose a profile image.
To support the launch, M+C Saatchi Group UK has created a multichannel campaign titled Don’t fall for the Hype, inspired by the way investment hype spreads through social platforms and group chats. Using a nostalgic 8-bit visual style to cut through the noise of social media, the campaign encourages investors to recognise their own habits and explore their “Hype Type.”
Steve Martin, a behavioural scientist at Columbia Business School and the CEO, INFLUENCE AT WORK commented: ““The FCA’s long-running InvestSmart campaign continues to play a crucial role in showing how hype and quick thinking can distort peoples’ judgement resulting in decisions they later regret. The number of investors being lured in by the hype is concerning and undermines the importance in initiatives like these in helping to protect lives and livelihoods.”
Miten Patel from the FCA said: “The Hype Type Revealer uses behavioural science to help investors recognise when hype is influencing their decisions. By simulating real messages and providing targeted training, it aims to change habits and support smarter choices. This is the latest step in our bold InvestSmart campaign, which focuses on practical tools to help consumers make informed investment decisions.”
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