When making decisions, people can often be limited by their time, knowledge and willpower. To compensate for these limitations, people use shortcuts in their decision making which can lead to cognitive biases. Consequently, this can lead to people to do things that are not in their best interest.
Behavioural insights are a powerful set of tools that allow us to make appropriate and effective regulations and programs that reflect how people actually behave and process information. These regulations and programs are used to address issues in capital markets and improve outcomes for investors.