Evaluation
Researchers partnered with a local bank to learn how customers chose between two account types—an account that had been offered for many years, which carried high monthly fees but no individual transaction costs, or a new type of account that charged for each withdrawal but did not impose monthly maintenance fees. Customers without an existing account recognized the advantages of the new type of account and overwhelmingly chose to open one, while many customers with the existing account type did not switch to the new one. However, of the existing customers, those who used their account more due to receiving a financial transfer in the past did switch to the new account type, suggesting that more experience using financial products can improve financial decision-making.