First given at FinTech 2015 in Edinburgh, I looked at how to apply Nir Eyal's 'Hooked' to creating FinTech products.

1. Hooked on Finance:
The science & psychology* behind
habit forming Fintech apps
Nathan Fulwood
@kidcamel
*not a doctor.

2. We help ambitious
businesses design remarkable
brand journeys.
We help ambitious
businesses design remarkable
brand journeys.

3. 1.49bn 316m 900m 400m
(Remarkable brands being built via exceptional experience and the network effect)

4. Hooked, by Nir Eyal
“Hooked gives you the blueprint
for the next generation of
products. Read it or the
company that replaces you
will.”
Matt Mullenweg, founder of Wordpress

6. Every time you check
your phone during this
presentation,
somewhere a kitten
dies.

7. 90% 42%
35% 43%
not saving enough never checked pension performance
regret not saving more wish they’d had more one night stands
http://www.moneywise.co.uk/news/2014-04-30/90-brits-not-saving-enough-retirement
http://www.dailymail.co.uk/news/article-3236186/Our-number-one-regret-Not-saving-Putting-money-away-tops-list-50-things-Britons-differently-live-lives-again.html

8. ✓Closer management, better finances
✓Increased customer lifetime value (CLTV)
✓Pricing flexibility
✓Driving growth
✓Creating competitive standout
✓Front of mind = front of pack
Forming a healthy habit

9. The Hook model:

10. PAID TRIGGERS:
Expensive and unsustainable for habit forming

11. Earned Triggers:
(unreliable and short lived)

12. Relationship Triggers:
(Word of mouth, recommendation, the network effect)

13. Owned Triggers:
(Post-engagement, opted in, driving re-engagement)

14. Triggers:
Paid Earned Relationship Internal
Acquisition Re-engagement
Progression of value

15. Internal Triggers
Help user’s scratch that itch.
Associate your triggers with user’s
state of mind.
Eventually they won’t need an
external trigger

16. (Taiichi Ohno, Legend)

17. THE FIVE WHYS?
Why?
Why?
Why?
Why?
Why?
(keep asking Why? until you get to the base
emotional need you have to satisfy)

18. TRIGGERS • Set up an Action
• External or internal
• Negative emotions frequently serve as internal
triggers
• Understand your customer’s needs and align
your triggers with scratching that itch

19. The Hook model:

20. B=MAT
Behaviour = Motivation +
Ability + Trigger

21. Seek Pleasure Avoid Pain
CORE MOTIVATIONS:

22. Seek Hope Avoid Fear
CORE MOTIVATIONS:

23. Seek Social Acceptance Avoid Rejection
CORE MOTIVATIONS:

24. Understand the reason people use a
product or service.
Lay out the steps needed to get the
job done.
Start removing them until you reach
the simplest possible process.
Easier = better.
Something Really New: Three Simple Steps to Creating Truly Innovative Products by Denis J. Hauptly (7 Nov 2007)
ABILITY

25. Time Money Physical
Effort
Social
Deviance
Non-
routine
Brain
Cycles

26. TIME:

27. TIME:

28. MONEY:

29. PHYSICAL EFFORT:

30. BRAIN CYCLES:

31. NON ROUTINE:
"I'd never struggled with understanding the importance of saving, but hated the
exercise of doing it regularly and having to anticipate changes in my spending +
income. Thankfully, now the trustworthy robots powering Digit do all that for me."

33. Time Money Physical
Effort
Social
Deviance
Non-
routine
Brain
Cycles

34. (Frederick II of Prussia and the introduction of
potatoes. Google it. Genius move.)

35. HEURISTICS:
Mental shortcuts we take to make
decisions and form opinions.
AKA Persuasion architecture.
Learn them. Use them.

36. FRAMING EFFECT:

37. ENDOWED PROGRESS EFFECT:

38. ACTIONS • Simplest behaviour in anticipation of a reward
• B=MAT
• Pleasure vs Pain, Hope vs. Fear, Acceptance vs.
Rejection
• Time, money, physical effort, brain cycles,
social deviance, non-routine
• Heuristics are useful mental shortcuts to exploit

39. The Hook model:

41. REWARDS
Tribe Hunt Self
(Attraction, inclusion,
community)
(Accumulation of
resources, money and
knowledge)
(Intrinsic worth,
completion, mastery)

42. Tribe:

43. Tribe:

44. Hunt:

45. Self:

46. VARIABLE REWARDS • 3 types of rewards:
• Tribe - connectedness with others
• Hunt - material resources & information
• Self - master, competence and completion
• Finite variability becomes predictable and less
appealing
• Satisfy needs, but leave users wanting to
reengage

47. The Hook model:

48. The IKEA Effect:
The more users invest time
and effort into a product or
service, the more they value
it.

49. STORING VALUE: • Content
• Data
• Followers
• Reputation
• Skill

50. Content:
Simple.com

51. Reputation:
Fidor.com

52. Data:
Level
Sets up the next trigger

53. The Hook model:

54. (Don’t be a dick)

55. The Manipulation Index:
Improves the user’s life
Does not improve the
user’s life
The maker would use it The maker wouldn’t use it
Peddler Facilitator
Dealer Entertainer

56. KEY TAKEOUTS • The brand is the experience
• Understand your audience
• Easier = better
• Use the tips, but test and learn
• Play nice

58. THANK YOU!