Countless American consumers and businesses struggle to manage their money in meaningful ways that allow them to take advantage of long-term financial opportunities: living paycheck to paycheck, operating with little or no cash reserves, and attempting to borrow without access to affordable resources. credit.

Research shows that more than 80% of consumers want financial advice from their primary financial institution, but only 14% receive it.[1] And not addressing these needs results in things like:

  • Loss of customer loyalty.
  • Decreased income opportunities.
  • Decreased wallet and app share.

The gap in expectations between what customers want and need to help improve their financial health and the services they receive (or don’t receive) from their main banks has also led to damaging financial fragmentation. As customers try to build a financial foundation by doing their best to save, spend, borrow, and plan, they discover gaps in what their local bank offers, forcing them to turn to nonbank competitors in their time of need. And with each new financial relationship a customer forms, their primary bank moves further away from being the center of that customer’s financial life.

The good news is that there are three proven key strategies that community and regional banks can focus on today to protect their bottom line while also addressing the root causes and potential outcomes of the financial health crisis:

  1. Become the financial center.

The key to fighting financial fragmentation lies in becoming a financial center. That means having access to and offering the right technology, reliability, control and access.

  1. 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.

  1. Defend customers and strengthen trust.

The key to protecting customers and building trust is balancing powerful technology with a strong human connection.

To learn more about how your bank can protect your bottom line, better serve customers, and reap the rewards with these three proven financial health strategies, visit today.

[1] Achieving Financial Wellness: Innovative Businesses Empowering Consumers, Aite, May 2021, 4 – 5.

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