Archive for August 17th, 2016

Look behind the scenes of the world’s biggest mutual fund

August 17, 2016

A nice story of the world’s biggest Mutual Fund – Vanguard’s Total Stock Market Index Fund – and its low profile fund manager – Gerry O’Reilly. He manages the $450 billion fund!

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What the invention of the sewing machine tells us about automation, innovation, and jobs

August 17, 2016

James Pethokoukis of American Enterprise Institute points to benefits of sewing machine. It is true it helped lower the drudgery but it also unexpectedly led to the readymade garment revolution.

This is hardly something which the young generation will understand. Earlier, we were so much dependent on tailors but now it is a profession which has almost disappeared..

Designing a behaviourally informed banking market

August 17, 2016

BIT  blog has a post on the topic:

Last week the Competition and Markets Authority (CMA) published the final report of their retail banking market investigation. The CMA has identified that currently, only a tiny proportion of customers switch to a different bank in any year; despite the fact that many of them could save about £90 a year by switching. A quarter of people in the UK use an unauthorised overdraft each year, suggesting they do not have the best account for them: this earns the banks £1.2 billion a year from unauthorised overdraft charges.

The report proposed three foundation measures as the basis for their package of remedies. All three foundation measures have strong behavioural aspects:

  1. Requiring banks to implement Open Banking to help consumers share their data securely with other banks and third parties. This will help make it easier for consumers to shop around and compare banking products (making it easy).
  2. Requiring banks to prominently display a number of core indicators of service quality, including whether a personal customer or small business is willing to recommend their bank to friends, family and colleagues (making it attractive).
  3. Introducing routine and occasional prompts for personal and business customers to encourage them to consider their current banking arrangements and shop around for alternative banking services (making it timely).

Those of you who have read our recent report on applying behavioural insights to regulated markets will recognise that these remedies strongly echo the principles set down in that paper: we will now set out their behavioural underpinning in a bit more detail.

The post goes on to explain all the three making it easy. making it attractive and making it timely..


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