Capco has hosted events in London and Edinburgh exploring how Behavioural Science can improve decision-making and drive better outcomes in financial services. 

During these two events – titled ‘Beyond the Irrational: Better Decisions & Outcomes with Behavioural Science’ – our keynote speakers and panellists shared their diverse perspectives from across the fields of academic research, business transformation, organizational performance, procurement, client experience, and advanced analytics. 

Attendees included leaders across change transformation, risk functions, customer experience, product management, financial client advisory, internal audit, technology and data.

The events opened with a welcome address highlighting the importance of understanding human behaviour beyond traditional rational models, exploring how insights from Behavioural Science can be practically applied to deliver better decisions and outcomes. 

This was followed by a discussion on the limitations of classical economic theories – which often assume individuals will behave rationally – and how Behavioural Science uncovers cognitive and emotional biases that drive real-world – and often irrational – decision-making.

Our keynote speakers emphasized that, through encouragement from regulators and evolving best practices, there is a growing trend of banks building in-house Behavioural Science Units as a core capability to better understand employee and customer behaviours, driving improvements in risk management, resilience and performance. 

Examples of existing behavioural interventions in financial services were showcased, including simplifying banking processes (so-called ‘desludging’), using defaults for pension auto-enrolment, increasing claim completion rates and supporting better investment decisions. These interventions illustrated how Behavioural Science can foster responsible financial behaviour and reduce institutional risk.

The panel discussions focused on the value of applying Behavioural Science in five key areas:

1. Leading Large Change Transformations – Behavioural insights can help organizations navigate the complexities of change management. By anticipating and addressing resistance, organizations can more effectively guide their teams through transformations, ensuring smoother transitions and more sustainable outcomes. Behavioural Science also fosters creative approaches to winning the hearts and minds of employees, ensuring successful adoption of new ways of working.
2. Improving Customer Experience – Behavioural Science can be used to better understand customer needs, preferences and pain points. By designing more intuitive and engaging customer journeys with clear messaging, companies are driving satisfaction and loyalty, while nudging customers toward better financial decisions. Additionally, training grounded in Behavioural Science principles equips colleagues to better support vulnerable customers in building financial confidence.
3. Enhancing Performance Management – Key strategies for motivating employees and enhancing productivity were discussed. These included setting clear goals, delivering constructive feedback, fostering psychological safety, aligning incentives with desired behaviours, and ensuring leadership consistently role-models those behaviours.
4. Reducing Behavioural Risk – Understanding behavioural biases can help organizations design interventions that improve key decision-making processes, mitigate risky behaviour and reduce costly errors. For example, choice architecture applications can minimize decision-making noise, leading to more consistent and effective outcomes.
5. Optimising Processes with Data Science and AI – The convergence of data science, AI, and Behavioural Science can enhance personalised marketing, operational efficiency, and more accurate behavioural forecasts. By integrating behavioural insights, companies can ensure AI-driven systems avoid replicating human biases, leading to more ethical and fair outcomes while optimising processes like marketing, customer experience and performance management.

The events concluded with reflections on the future of Behavioural Science. The need for continued research, ethical considerations and interdisciplinary collaboration was emphasized as important next steps. The conversation inspired attendees to apply these insights to drive better decisions and outcomes in their own organizations.

After the formal programme, attendees had the opportunity to network and exchange ideas over refreshments. There was a mix of excitement and curiosity, with discussions ranging from the latest academic research to practical applications across different areas in financial services.

If you’d like to learn more about how Behavioural Science can help your business achieve its objectives, please reach out to us and we’d be delighted to discuss how we can support your journey to success.