Improving Customer Journeys in Regulated Industries: A Behavioural Approach

How do emotions shape our financial decisions?

We spoke with Philip Courtney, founder of Humans and Money, to find out why people often fail to take the right actions with money—and how regulated businesses can build better customer journeys to help.

Phil specialises in investor psychology, having worked in the financial sector before launching the consultancy.

He’s just completed a PhD on people’s attitudes to money and, in his words, he’s a bit of a “nerd” when it comes to financial decisions.

Here’s a closer look at what Phil shared in our conversation.

What Drives Our Money Decisions?

Phil’s fascination with how people behave around finances started when he noticed that many well-intentioned individuals rarely do what’s “best” for their long-term financial health.

He says our money choices are often driven by emotions such as fear, uncertainty, or the desire to avoid complexity.

“When we think about regulated industries—especially financial advice, investing, and saving—people often feel anxious or overwhelmed,” Phil explains.

“These are complex topics, so it’s no surprise we end up with a mix of worry, confusion, and fear.”

Why People Resist Taking Action

Phil believes two main gaps stop us from acting:

1. The Attitude–Intention Gap

We might think fitness is good, or that saving more money is wise, but that doesn’t mean we intend to take any steps.

2. The Intention–Action Gap

Even if we form a goal, we still may not see it through due to busy schedules or lack of clear guidance.

He notes, “We expect people to save for retirement, but they often drop out mid-journey even if they see the value.

That’s human nature.”

Where To Begin With Customer Journeys

For businesses hoping to shape behaviour, Phil suggests a repeatable framework he calls the ‘SHAPE’ method (Scope, Highlight, Apply, Prove, Embed).

He focuses first on scoping by asking simple questions:

• Which specific behaviours do we want customers to adopt?

• Where are customers dropping off—and why?

• What commercial impact do these behaviours have?

Rather than dive into shiny tools, Phil emphasises mapping out desired customer behaviours and looking for gaps in the existing process.

Insights That Truly Matter

Companies often sit on mountains of data but struggle to turn it into actionable insights.

Phil says this is where you can highlight the real friction points customers face and then apply the right research methods to uncover them.

Qualitative Interviews

Structured discussions can reveal hidden emotional drivers, but it’s essential to frame questions carefully to avoid biased answers.

Observational Data

Look at what customers do (rather than just what they say) to predict future actions.

Past behaviours are a big indicator of future ones.

A/B Testing and Prototypes

Create small experiments to see how customers respond in real life.

“Behaviour is a solid unit of measurement,” Phil says.

“There’s plenty of data, but if you don’t know what problem you’re solving, it’s useless,” he adds.

“Start with a specific question, then pick the right data to answer it.”

The Role Of Compliance In Design

In regulated sectors, compliance can be a barrier—or a powerful ally.

Phil recommends involving compliance teams early.

“They’re experts in their field,” he says.

“Bring them in at the start so you don’t build an experience that goes against your firm’s culture and appetite for risk.”

This collaborative approach is especially relevant as the Financial Conduct Authority’s Consumer Duty places more responsibility on businesses to make sure customers understand and use the products offered.

Firms now have to test whether people truly understand fees, are reading documents, and feel empowered to take the right next steps.

“Consumer Duty pushes companies beyond just providing information; they have to check it’s landing and leading to good outcomes.”

— Phil Courtney, Humans and Money

Focusing On Outliers

When looking at data, many organisations zero in on averages, but the outliers can be revealing.

“If 90% of people read a crucial document, that sounds great,” Phil says, “but what about the 10% who didn’t?

That group could include vulnerable customers who need extra care.”

Examining these outliers is a core part of behavioural best practice and helps you spot potential compliance risks or usability barriers.

It also feeds back into designing user journeys that work for everyone, not just the majority.

Testing And Scaling Solutions

Once you’ve highlighted issues and applied the right research, it’s time to prove your findings through real-world experiments.

One of Phil’s key approaches is running tests before rolling them out on a large scale.

“It’s never been easier to mock up a digital journey and show it to real users,” he notes.

This helps businesses measure the true effect of small tweaks on sign-ups or retention.

If something works, they can scale up.

If not, they collect more insights and try again.

That loop is an essential part of delivering better digital experiences.

Key Takeaways

The final step is to embed what you’ve learned into your process to make improvements long-lasting.

When asked for final thoughts, Phil highlighted simple but critical steps.

• Define the Goal: Know exactly which behaviour you want to change.
• Pick the Right Data: Gather only what answers your question.
• Test in the Real World: See what people do, not just what they say.
• Don’t Forget Compliance: Involve people who could present potential challenges early to avoid later hiccups.
• Review Outliers: Pinpoint areas where vulnerable or anxious customers get stuck.

All these steps come back to Phil’s passion—helping real people make better decisions about their money.

FAQs

What Is Behavioural Science in Finance?

Behavioural science in finance studies how people actually make money decisions, looking at biases, emotions, and social factors that influence choices.

Why Involve Compliance Early?

Bringing compliance in from the start helps shape customer journeys that meet regulatory standards and fit your organisation’s culture.

How Do I Know Which Data Matters?

Start with a clear question.

If you need to reduce account drop-offs, for example, track which parts of the sign-up process people abandon.

What Is Consumer Duty?

The FCA’s Consumer Duty sets higher standards for financial firms to make sure customers understand products, receive fair value, and achieve good outcomes.

Why Focus on Outliers?

Outliers often reveal where the biggest problems lie, especially for vulnerable customers who may have trouble navigating complex processes.

References

Consumer Duty, Financial Conduct Authority, 2023

Financial Wellbeing Research, Money and Pensions Service, 2023

Behavioural Insights in Consumer Policy, OECD, 2023

Reviewed by

Sam Kendall, 02.01.2025

Sabrina McClune, 02.01.2025