20 August 2017
Find out more

First direct asks customers to save for a 'brainy' day

25 May 2010  |  7326 views  |  0 Team meeting

The ability to save money - and your willingness to switch banks - is determined by the side of the brain you think with, according to research commissioned by UK online bank first direct.

The study - carried out at Hertfordshire University by psychologist and author of Sheconomics, Professor Karen Pine - found those who gave right-side of the brain responses (typically creative and impulsive types), have a carefree 'live for today' attitude, credit card debts and little or no savings.

But deeper thinkers, who responded using the left-side of the brain - careful and logical types - are far more comfortable managing their finances, it emerged.

Professor Pine began the experiment by asking 500 adults a brain-teaser compiled by US-based scientists.

She examined their answers and found that only one in three people got the answer right; these people were classed as 'reflectors' - who think with the left-side of the brain.

When participants who gave the wrong answer - described as 'intuiters' - were asked about their attitude to money, it was found they had fewer savings, credit card debt and a lax attitude to money management.

The report of the study also showed 43% of 'intuitors' had been with the same bank since leaving school. For some this was 30 years ago or longer. In contrast, one in four 'reflectors' had changed where they bank at least twice

Professor Pine, comments: "Reactive people can't suppress the first answer that springs to mind. They're the kind of people who live for the moment and avoid putting effort into anything that doesn't bring short-term gain. This can be linked to poor money management, such as only making the minimum repayment on a credit card.

"Intuitors might feel dissatisfied with their bank, too, but don't change it."



Finextra verdict A mildly diverting set of results that first direct is using to promote its easyswitch service for attracting customers from other banks. Harmless enough - unless the bank has plans to invest in brain scanning technology to add to its armoury of credit scoring techniques. Of course, the profit-motivated card issuer would probably reject reflectors (66% of whom pay off their credit card bill in full every month) in favour of the more impetuous intuitors.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

First Direct falls foul of Twitter hack

First Direct falls foul of Twitter hack

26 February 2010  |  17438 views  |  3 comments
Scientists create formula for producing better traders

Scientists create formula for producing better traders

26 November 2009  |  7067 views  |  0 comments
First direct dares to share what customers think of it

First direct dares to share what customers think of it

13 October 2009  |  17185 views  |  1 comments
First direct launches customer community site

First direct launches customer community site

21 November 2008  |  7658 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9228 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7939 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7415 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
6806 views 0 | 1 tweets | 1 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6544 views 1 | 5 tweets | 3 linkedin

Featured job

Find your next job