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Nudging is the Architecture of Choice in the World of Banking

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  • Paulo Monteiro Rosa

Abstract

A nudge is a prompt that helps people adopt a desired behavior. Subtle signposts or slight changes in our environment can have a major impact on our choices and behaviors. So, when banks communicate the advantages of retirement savings in their branch windows or on their website, they encourage people to increase the amount they actually save for retirement simply because these prompts and messages are more visible to them. The aim of targeted nudges in our lives, environments, habits, and processes is to achieve better decisions and outcomes.

Suggested Citation

  • Paulo Monteiro Rosa, 2022. "Nudging is the Architecture of Choice in the World of Banking," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(5), pages 220073-2200.
    • Handle: RePEc:abg:anprac:v:26:y:2022:i:5:1533
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    File URL: https://rac.anpad.org.br/index.php/rac/article/view/1533/1784
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    Cited by:

    1. Cristiana Cerqueira Leal & Ines Branco-Illodo & Benilde Maria do Nascimento Oliveira & Luisa Esteban-Salvador, 2022. "Nudging and Choice Architecture: Perspectives and Challenges," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(5), pages 220098-2200.

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