3 Things Banking Institutions Can Do to Ease Customer Financial Stress

Throughout the world, financial stress is a reality for millions of people. From student loans to mounting bills and more, it’s a burden too many people feel intimately. According to NorthWestern Mutual, 44% of Americans cited financial struggles as their primary stressor – more than personal relationships or work.¹ 

Financial stress can have a debilitating effect on your mental health, and too often, people are left feeling helpless when it comes to managing their money.

The question becomes what banking institutions can do to ease customer financial stress. Here are three ways that banking institutions might be able to provide more assistance.

1. Encourage Data-Rich Banking Experiences

We live in a digital age where data is a powerful resource. Banking institutions should emphasize using this data to their advantage, such as by creating an online interface that not only displays monthly transactions but also provides more detailed visuals on items like net worth and spending trends over time. 

With financial metrics broken into customized charts and figures, customers would have a better picture of their overall finances – elucidating where adjustments can be made in spending or saving habits so that their money works better for them.

This type of assistance may feel much less overwhelming than general advice about saving and spending money wisely, without any indicators of what the customer’s real situation looks like financially each month.

2. Focus on More Flexible Services

Did you know that 6.2 million people (ages 50 and up) are $296 billion in debt?² It’s not just 20-year-olds who are struggling to pay off debt. With housing, healthcare, and a variety of other rising expenses to account for on top of these loans, your customers may need help keeping up with their payments.

As rising costs put extra strain on budgets, many people have had to look for more creative ways to store and access their money to avoid breaking the bank. To alleviate some of this stress for customers, banking institutions could look into providing more flexible services.

This type of approach would help individuals remain in control of their finances by offering options for services that allow them to make small, accessible payments as well as more long-term strategies.

Some examples include:

• Pay-As-You-Go Savings Accounts allow customers to save over time without a large initial deposit
• Financial Assistance Programs that offer loan forgiveness, debt consolidation, and other advisory services 
• Investment Opportunities with low minimums tailored to new investors or those with lower financial means

Adopting a more flexible model would create an environment where customers feel less restricted by their financial situation and can take advantage of resources as quickly as they need them.

3. Offer More Accessible Financial Education

For many years now, banks have relied on offering generic advice about budgeting, saving, and spending money wisely. Unfortunately, this approach has not been enough to make a substantial difference in the financial well-being of customers.

Instead, banks should start offering financial wellness programs with tools (like webinars, videos, and online resources) to provide more accessible financial education tailored to their customer’s individual needs.

Overviews of practical money management skills – such as retirement planning, setting financial goals, debt restructuring, and more – would help customers put the right financial knowledge into action. As for the form, interactive content makes the material less intimidating and easier to understand while also allowing customers to learn at their own pace. 

Not only do these educational materials give customers more access to valuable insights, but they also open up opportunities for customer engagement – something that is essential for long-term success with any bank or financial institution.

Financial Wellness by Enrich

As the financial landscape shifts, banking institutions have the opportunity to help their customers and provide them with more than just credit cards, loans, or investment services.

Enrich's financial wellness platform can be an important piece of the puzzle. With tailored content and interactive features such as bank account tracking services, goal-setting tools, and quizzes to test their understanding of topics ranging from retirement planning to debt repayment, customers might finally have a comprehensive place to go for all their financial education needs.

Schedule a demo and see the lifelong, positive impact financial wellness can have on financial stress.

Building Relationships Leads to Customer Loyalty

Financial stress can take a serious toll on an individual’s life and well-being. No bank wants their customers to feel overwhelmed, so it’s important for banks to do all that they can to relieve the stress of financial difficulties.

By emphasizing data-rich banking experiences, offering more flexible services, and providing easily accessible educational resources, banking institutions can go a long way towards easing customer financial stress.

Banking institutions have the potential to make a meaningful difference in how their customers manage their finances. With the right tools and approaches in place, banks can help ease customer financial stress and deepen relationships with their clientele – ultimately leading them to a more secure, healthy financial future.

1 - https://news.northwesternmutual.com/planning-and-progress-2018

2 - https://studentaid.gov/data-center/student/portfolio