This is my second interview with Jeff Kreisler, Find our first interview here.

Jeff Kreisler is a lawyer, author, speaker, pundit, comedian and advocate for behavioral science.

I know of him mainly because he co-wrote the book  Dollars and Sense: Money Mishaps and How to Avoid Them with co-author,  Dan Ariely, Psychologist, and Behavioral Economist, he also wrote the book  Get Rich Cheating, about how money makes us do unethical things.

People’s Science

After the success of Dollars and Sense, Jeff took that momentum to work on a website called PeopleScience which is about behavioral science beyond financial decision-making, such as workplace engagement, event design, loyalty rewards, etc.

Behavioral Economics The Bank’s Secret Weapon

Jeff wrote an e-book called Behavioral Economics The Bank’s Secret Weapon sanctioned by Strands, a FinTech software developer that enables banks to offer personalized digital banking experiences. You can get the e-book here.

We spoke about how, idealistically, the banks will not take advantage of the consumer by promoting loans, credit cards, margins of credits, etc. It’s a nice service when the consumer needs it, but it can be detrimental to be encouraged to take loans for the sake of consumerism.

We also spoke about the abuse of the Canadian banking system towards their clients by offering only high fee mutual funds, by disguising the fees, by making the client believe that they are getting free financial advice when in reality they are paying about 3% MER (Management Expense Ratio).

The 10 Key Behavioral Principles

We spoke briefly about the 10 Key Behavioral Principles

1. Opportunity Cost
2. Anchoring
3. Loss Aversion
4. The Power of Language
5. Confirmation Bias
6. Sunk Cost
7. Mental Accounting
8. The Pain of Paying
9. The Power of Free
10. Self Control

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