Countless American consumers and businesses are struggling to manage their money in meaningful ways that allow them to take advantage of long-term financial opportunities – living paycheck-to-paycheck, operating with minimal to no cash buffers, and trying to borrow without access to affordable credit.
Research shows that upwards of 80% of consumers want financial advice from their primary financial institution, but only 14% are getting it.[1] And failing to address these needs results in things like:
- Lost customer loyalty.
- Decreased revenue opportunities.
- Declining share of wallet and app.
The gap in expectations between what customers want and need to help improve their financial health and the services they’re getting (or not getting) from their primary banks has also led to damaging financial fragmentation. As customers try to build a financial foundation by making better efforts to save, spend, borrow, and plan, they’re discovering gaps in what their local bank offers – forcing them to turn to non-bank competitors in their moments of need. And with each new financial relationship a customer forms, their primary bank moves farther away from being at the center of that customer’s financial life.
The good news is there are three key proven strategies community and regional banks can focus on today to protect your bottom line while simultaneously addressing root causes and potential outcomes of the financial health crisis:
- Become the financial hub.
The key to fighting financial fragmentation lies in becoming a financial hub. That means having access to – and offering – the right technology, reliability, control, and access.
- Offer the right tools.
The key to being first in line for new services and relationships is offering the right tools that support the execution of a comprehensive financial health strategy.
- Defend customers and strengthen trust.
The key to protecting customers and strengthening trust is balancing powerful technology with a strong human connection.
For more information about how your bank can protect your bottom line, better serve customers, and reap the rewards with these three proven financial health strategies, visit jackhenry.com today.
[1] Achieving Financial Wellness: Innovative Companies Empowering Consumers, Aite, May 2021, 4 – 5.