How data can help banks drive true financial wellness
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Only 1 in 4 customers strongly agree their financial institution looks out for their well-being—a crucial wake-up call for FIs hoping to drive financial wellness for their customers
Today, the banking landscape is vastly different. Customers no longer want the bare minimum—they demand robust digital banking tools, personalization, and advice from those they trust with their financial well-being.
When they know you’re invested in their financial wellness, customers will turn to you and your digital banking tools, willingly giving up their data if it means they get more from your financial institution in return.
But what do you do with all of your existing customer data (and how can you use it to help your customers achieve financial wellness)?
The answer lies in your digital banking tools. Real data and actionable insights can help drive financial wellness for your customers using your digital banking tools—if you know what to do with the data.
Data has more to do with financial wellness than we think
Customers know that data is like currency—it’s valuable. But if they’re giving their data to you, they want something in return. 78% of customers are happy to share their banking data, so long as they get better, faster services in return.
At the same time, customers don’t want to give up data for the sake of receiving product recommendations or quick services alone. 41% of the time, customers think the products and services their banks offer them are offered only with the bank’s best interest in mind.
That means the data you do collect has to be used in meaningful ways. For example, using data to provide tailored financial advice, custom messaging, timely financial products, relevant spend optimization tips, and more so that customers have the tools to build healthier financial habits.
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You’ve got to dig deeper— a lot deeper
Data makes the world go ‘round. You can’t buy a book on Amazon, watch a show on Netflix, or purchase a coffee with your Starbucks app without it. And, when it comes to digital banking, data plays just as integral a part in your customers’ financial lives; it’s the key to truly understanding your customers. The question is, how?
Your customers’ data is a goldmine of insights just waiting to be harnessed. It enables you to do things like understand your customers on the deepest level possible, and easily identify where customers can be spending wiser and saving smarter.
Once you’ve unearthed this data, it’s time to put it into action—transforming everyday banking tools into everyday financial wellness tools.
Transforming digital banking tools for the better
You’ve heard that big tech and neo banks are slowly taking over, attracting customers because they focus on empowering customers to take control of their finances, rather than simply making product recommendations.
Of course, customers know their data is being used like currency, but they get something out of it, too. So they’re willing to share. That’s because these tools they’re using to manage their everyday finances aren’t just banking tools—they’re wellness tools.
Your digital banking tools can offer the same benefits, but only if they’re aimed at equipping customers with the right tools, advice, and assistance in achieving financial goals. That means transforming everyday banking tools into everyday financial wellness tools.
Financial advice that’s real-time (and relevant)
Insights from your customers’ SKU-level spend data can help you drive advice that’s relevant to your customers today and into the future—like generating timely and relevant financial advice through actionable tips, achievements, and spend recommendations, all in your digital banking tools. On top of that, your customers’ SKU-level data can also reveal critical opportunities for customers to find and save valuable dollars.
Personalization, but make it human
Valuable data and insights from everyday spend, savings, and even investments can help you create customer-first personalization strategies. This data tells you a lot about what your customers need, right when they need it most.
Customers want more personalization. 54% of customers want more specific, real-time banking offers, making it clear that generic marketing and product offerings don’t cut it anymore.
The best part? Personalization can happen directly in your digital banking tools, incentivizing customers to turn to your tools time and again for personalized advice, recommendations, financial literacy, and more. Suddenly, your tools are no longer treated as basic banking tools—they’re wellness tools.
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Look to the future
Your customers’ needs and goals are always changing. That means knowing what your customers will need not just today but down the road, too, is invaluable. SKU-level data that reveals your customers’ financial habits and behaviors can help you connect those dots as they bank with you across every life stage.
When you use data to help predict the future for your customers, you can:
Share personalized advice and insights around everyday spend with your customers to help them nurture healthier financial habits for the future, all in your digital tools
Provide personalized product recommendations for future needs based on current spend and purchase behaviors
Equip customers with spend tracking and management, so you can gather more data to help them save and optimize their spend down the road
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Customers go where financial wellness follows
Knowing who your customers are by understanding their spending behaviors and purchase habits can illuminate a goldmine of insights that tell you what your customers need, when they need it, in order to achieve their financial goals.
That’s because your customers want you involved in their financial lives.
Customers want you to be involved in their financial wellness journey—they’re not just looking for a place to park their money, but guidance in making it go further. There’s been a 21% increase in customers who place more value on experiential factors with their FI than rates.
With the rise of digital banking only continuing to swell, customers will expect more from their digital banking tools, demanding the resources, insights, and advice they need to achieve their own unique version of financial well-being. If your FI can deliver on those demands, your digital banking tools can become drivers for richer, SKU-level customer data you can use to drive financial wellness for your customers.
Ready to transform your digital banking tools into digital wellness tools?
Your digital banking tools have the potential to be so much more than everyday banking platforms. But the question on every financial institution’s mind is, how?
In our new Guide, “Financial Wellness: Using Data to Transform Digital Banking Tools into Digital Wellness Tools”, we break down how banks and credit unions can harness SKU-level customer data to transform everyday banking tools into everyday wellness tools. Download your free copy of our Guide below, and contact us to explore how Sensibill can help you put your customer data to work.
Turn everyday spend into actionable insights that drive financial wellness for your customers.
Meet the author, Jacalyn 🏔
Jacalyn is our Content Marketing Manager with a background in scaling Canadian startups and SMBs. When she’s not writing, you can find her outdoors, or hunting down the best craft beer in her city.