The adaptive nudge framework: advancing ethical behavioural design in financial decision-making

Purpose The implementation of nudges in financial decision-making can create positive social impact but often leads to unintended consequences, such as over-reliance on defaults and ethical concerns. This paper aims to critique the efficacy of current nudge applications and introduce the Adaptive Nudge Framework (ANF) to enhance their effectiveness. Design/methodology/approach This conceptual study reviews existing theoretical frameworks (EAST, 4D, COM-B, FORGOOD) and empirical research on nudges to identify key challenges and propose a more adaptive approach. Findings Unintended consequences of financial nudges include inertia in decision-making, reduced personal responsibility and ethical concerns. The ANF, which integrates diagnostics, contextualisation, personalisation, continuous monitoring and prolonged evaluation, aims to mitigate these risks. Practical implications This paper provides actionable guidelines for practitioners, including a checklist for designing, implementing and evaluating financial nudges effectively. Social implications By improving financial decision-making, ANF contributes to Sustainable Development Goal 10 (reducing inequalities), ensuring that behavioural interventions promote financial inclusion without adverse effects. Originality/value This study advances the literature by introducing the ANF, a framework designed to enhance the adaptability and ethical implementation of nudges in financial decision-making.