These Behavioral Science Strategies Can Help Financial Providers Bridge the Racial Wealth Gap

This story is part of Equalizing Wealth, a guest-contributed column series that takes a sharp look at the interconnected factors driving the racial wealth gap in the United States — and puts forward evidence-based ways to address them. If you're interested in contributing your perspective to this column, please get in touch with us here. 

America’s racial wealth gap has remained large and stubbornly consistent. For every $100 in wealth held by white households, Black households hold just $15. Worse, research shows the gap between white and Black households — which was once closing — has now stalled and might even be reversing. 

And yet, despite facing systemic barriers and decreasing trust in financial service providers, there’s a strong desire within communities of color to learn more about financial products and services that could help them build wealth over time. So, how can financial service providers better serve these individuals? Our research shows that simple interventions based in behavioral science can establish the trust needed to help disadvantaged customers embark on a wealth-building journey.

We initiated a series of experiments based on successful interventions in healthcare to see if similar strategies would work for financial products. The results indicated that Black individuals are not only more interested in learning about financial tools, but are also more likely to act quickly on these opportunities when they are presented as clear, accessible and relevant to their needs.

Three strategies quickly emerged for providers to meet customers where they are with tailored, high-touch approaches that can help them build wealth and improve their financial health.

1. Reframe the message

When it comes to motivating action, how you present a message is just as important as what you say. People respond differently depending on whether you highlight the potential gains of an action or focus on what they might lose if they don’t act. What’s particularly interesting is that these responses aren’t universal — they vary by group.

Research we conducted on life insurance products with over 1,300 U.S. participants found that untapped consumers, particularly Black Americans, are much more responsive to gain-framed messages. When a message focuses on what they stand to earn — like achieving financial security or having more control over their money — they’re more likely to take immediate action. In fact, the odds of signing up for a financial product were nearly three times higher when we used gain-framed messaging compared to a neutral control message. 

These findings are consistent with 2023 research from Simon J. Blanchard and Remi Trudel that shows people are more likely to engage with a life insurance product when its benefits are presented in a gain frame and positioned in the future. Importantly, they mirror patterns from studies on individual engagement with preventative products and services in the health domain. For instance, in 2015 a research team led by Todd Lucas of Wayne State University found that gain-framed messages increased the receptivity of Black patients toward colorectal cancer screening.

Taking these studies into account, they begin to provide evidence that by framing a product as a path to personal gain, financial service providers could significantly boost engagement among underserved populations.

2. Lean on trusted messengers

Similarly, the messenger seems to matter just as much as the message. Across contexts, we see that people are more likely to act on information when it comes from sources they trust, and this is particularly true for underserved communities. Our research found that Black individuals, for example, reported significantly higher levels of trust in financial advisors and close family and friends when it comes to financial advice. 

For financial service providers, partnering with trusted local voices or advisors can make all the difference when engaging with these communities. Whether it’s collaborating with community organizations, tapping into peer networks, or empowering local financial professionals, getting the message out through familiar, trusted channels can build credibility, encourage action, and increase adoption.

3. Leverage warm handoffs

The concept of a “warm handoff” has been explored primarily in healthcare settings, where one provider personally transfers care to another, ensuring continuity and trust. We explored whether this same notion can be applied in financial services to boost uptake of wealth-building services.

For example, someone who has worked hard to pay off their debts through a debt management plan may now be in a position to apply those funds toward a new financial goal. Instead of leaving them to figure out the next steps on their own, a warm handoff could introduce them to a financial advisor who can help them set new wealth-building goals. This isn’t just about logistics, it’s about continuing a relationship of trust and support as their financial needs evolve.

We tested different ways to “hand off” clients from one stage of their financial journey to the next. One group received a series of progressively personalized emails (a strategy we call “foot-in-the-door”), while another received a single streamlined message encouraging them to connect with a financial advisor. The foot-in-the-door approach led to higher engagement, suggesting that higher-touch handoffs can make a real difference in encouraging people to take the next step in their financial journey. 

By maintaining that personal connection, financial service providers can help customers transition from a product like debt management to a wealth-building one with confidence.

Paving the way for financial equality

Financial service providers have a critical role to play in closing the wealth gap for underserved populations, particularly people of color. By leveraging behavioral science strategies — such as gain-framed messaging, trusted messengers and warm handoffs — providers may be able to better meet the needs of these communities and empower them to build wealth.

Duke’s research and reporting on wealth-building behavioral strategies was done in partnership with Prudential Financial. Warm handoff strategies were also tested in collaboration with GreenPath Financial Wellness. Participants were given the opportunity to opt out of all studies.