A different look at your next postcard…
74 million postcards are sold in France every year and 80% of these are sailed during summer. It is therefore very likely that you will be the sender or recipient of this type of mailing in the next few weeks...!
A short text that says much more than it seems
The postcard, with its relatively standardized format, imposes a major constraint on its writer, who must select what he or she wants to share with the recipient. This constraint in the choice of information that one wishes to transmit is a cruel reminder of cognitive overload, about which many behavioural finance researchers have written: time has become a much scarcer commodity than information. It has become necessary to constantly choose the information you want to retain... and this also applies to financial decisions.
While it is obvious that our brains offer many more possibilities than a simple postcard, we must nevertheless prioritize the information and retain only a portion of it. This overload of information leads us to establish, consciously or not, a form of prioritization, often based on criteria that are not very objective. For example, by typing on Google the word "postcard", nearly 130 million results appear in English. By refining on "old postcards", we drastically reduce but ... there remain more than 66 million results! The abundance of information requires that you choose the links you wish to consult. And once an article is selected, few people decide to click on a link inserted in the page (even though they have chosen it!), to access more more information...
This information overload and the need to select it gives us food for thought about how we find and remember the information we deem key to managing our personal finances...
An image that is not insignificant
Staying with the theme of summer correspondence, the choice of picture on the card also tells us a lot about the importance of context. In one of its 2017 publications*, the English regulator (the Financial Conduct Authority), uses the example of a castle drawing to illustrate that the same image (and therefore information) will be interpreted differently by different people and/or situations:
- On the back of a postcard: it will probably be a place visited during a stay
- In an art gallery: it is undoubtedly a work of art
- On the side of the road: probably the image is a pictogram to inform
As we can see, an image does not convey the same message depending on the context in which it is placed.
To conclude...
This in-depth reading of the postcard format shows us that, like all information, the information we use for our financial decisions must be handled with care. It would probably be appropriate to:
-Select your sources of information on the most objective criteria possible: probable veracity, presumed impartiality, freshness….;
- Consider all information equally, by refusing to prioritize it (and failing that, to prioritize it objectively);
- Contextualize the information received to use it better.
The lessons of this contribution would fit on a simple postcard... but you'll probably get more fun mail this summer!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
* From advert to action: behavioural insights into the advertising of financial products
WARNING
This document is an advertisement and has no contractual value. Its content is not intended to provide an investment service, nor does it constitute investment advice or a personalised recommendation on a financial product, nor insurance advice or a personalised recommendation, nor a solicitation of any kind, nor legal, accounting or tax advice from any entity under the responsibility of Société Générale Private Banking.
The information contained herein is provided for information purposes only, is subject to change without notice, and is intended to provide information that may be useful in making a decision. Past performance information that may be reproduced is not a guarantee of future performance.
Before subscribing to an investment service, financial product or insurance product, the potential investor (i) must read all the information contained in the detailed documentation for the service or product in question (prospectus, regulations, articles of association, key investor information document, term sheet, information notice, contractual terms and conditions, etc.), in particular those relating to the associated risks; and (ii)consult his legal and tax advisors to assess the legal consequences and tax treatment of the product or service being considered. His or her private banker is also available to provide further information, to determine with him or her whether he or she is eligible for the product or service under consideration, which may be subject to conditions, and whether it meets his or her needs. Accordingly, no entity within Société Générale Private Banking can be held responsible for any decision taken by an investor solely on the basis of the information contained in this document.
This document is confidential, intended exclusively for the person to whom it is given, and may not be communicated or brought to the attention of third parties, nor may it be reproduced in whole or in part, without the prior written consent of Société Générale Private Banking. For more information, click here.
In this merry month of December, we take a look at the letters sent to the man himself and consider the behaviours they...
Focus on Wealth Planning #4: Philanthropy
Healthcare real estate is undergoing a transformation, driven by major demographic, technological, and economic changes....
Focus on Wealth Planning #2: Protection of a surviving spouse
Focus on Wealth Planning #3: The Dutreil Pact