Innovative savings products offered through digital channels fit well with consumer needs to improve their financial health. Fintechs have taken the lead in this area by offering separate goal-based savings accounts. Automated savings advice, proactive financial education, gamification, and incentives can help customers achieve their goals and increase loyalty.
Banks are beginning to enhance their mobile web presence. This can support additional functionality beyond what is available in a standard mobile app. It can also reduce development costs and speed time-to-market with new functionality. Other current trends of note include making it easier to connect with a support representative through video and chat, and placing interactive information on websites that educate customers and allow prospects to ‘test-drive’ the company’s digital banking functionality before signing up. Finally, the ability to deliver personalized offers continues to be a top priority.
Today’s volatility in areas such as interest rates and the mortgage market creates opportunities for banks and credit unions to assist customers by offering financial education and commentary. This support can be delivered through a mobile app, via virtual classrooms, using website content and videos, or during in-person meetings. Some institutions are also creating incentive programs for customers to improve their financial literacy.
An emphasis on sustainability can yield tangible benefits to financial institutions. A recent PwC survey found that 80% of consumers and 84% of employees are more likely to buy from or work for a company that actively supports the environment. As an added reason to focus on climate issues, it’s expected that bank regulatory bodies will soon enact mandates for environmental sustainability. ESG efforts need to be sincere rather than opportunistic, however. They must be driven from the top, need to permeate the entire organization, and also carry certain risks in this polarized political world.
Consumers are becoming increasingly conscious of the environmental impact of their actions, with many wanting to make a meaningful difference. Financial institutions may want to consider investing in carbon calculating technologies to enable both their individual and business customers to adopt more sustainable practices. This helps address customers’ interests, and can differentiate your company from the competition while producing tangible sustainability-related results.
Rising inflation and the pandemic have increased the financial stress of workers. Employers are beginning to offer rainy-day savings options to assist their current workers and as a perk to help attract employees in this competitive market. As noted in an article above, this also presents opportunities for banks to attract and retain customers by developing easy-to-use ’emergency fund’ savings products to address customers’ financial concerns.
