Today’s consumers admit to knowing very little about managing finances. But they want to learn. Even better, they want to learn from you. J.D. Power reports 78% of US retail banking customers would prefer to receive financial advice or guidance from their bank or credit union.
80% of account holders expect their financial institution to provide them with materials that will help them make more informed financial decisions (Segmint). Subjects they would prefer to see covered include:
- Improving financial situations
- Retirement savings/strategies
- Tracking spending and creating budgets
- Saving for large purchases
Despite the desire for connection with their financial institution, 28% report receiving financial advice. Nearly three-quarters (72%) feel their institution does not provide them with the information they need to meet their financial goals.
Focusing on Better Communication
But your institution has a wide range of account holders in a multitude of income brackets and life stages. Where would you begin?
First, never assume that higher income or age equates to financial security. You achieve security by protecting your earnings through smart financial decisions. Forty-one million American seniors are currently at risk of economic hardship. Over 9% of families with six-figure incomes are still living paycheck-to-paycheck. Over half (59%) of those with six-figure salaries report carrying consumer debt (CareerBuilder). Moreover, 25% of households on track to financial security earn $50k or less (The American Council of Life Insurers).
A good start is to open the door to financial questions by creating opportunity. Here are a few ideas to get the conversation started:
- Generate a “Financial Facts” email newsletter featuring new tips every week.
- Provide a live question/answer time on your social networks.
- Offer a financial wellness webinar series.
- For more in-person learners, provide a bi-monthly financial learning class.
The good news is there is little risk of providing too much information. Only 11% of account holders think they receive too many communications from their financial institution. Account holders who receive advice from their institutions have a 91% higher level of trust. They are also far more likely to use their institution for another product or service and spread positive sentiment to their peers.
So what is holding you back? Start building your communications plan now!