Finances are complicated, plain and simple. Understanding financial concepts and products, making informed decisions that align with long-term goals, and having good money saving and budgeting habits are challenges many households face today.
Financial Services brands play an important role in supporting the financial education, wellness, and preparedness of consumers. Those driving education and empowerment can reap benefits of greater brand loyalty and connectivity with consumers, through this demonstration of social responsibility.
The opportunity to drive financial literacy and wellness, and ultimately greater brand connection with customers emerges as a macro trend across work we have conducted over the past 18 months within the financial services space, including retail banking, business banking, insurance, fintech, investment banking, and financial advisory services.
Below, we dive deeper into what customers value most, how financial literacy and wellness support can drive greater connectivity to brands, and what financial services brands should do to foster financial education and wellness in customers, resulting in greater connection and brand loyalty.
What do customers value most from Financial Services brands to support their financial literacy?
Clear and Transparent Communication
In a world of information overload, customers today strongly value clear, straightforward conversations that make complex financial topics easy to understand. Transparency in explaining concepts, products, services and fees is needed for clarity but also for building trust.
Personalized Advice
Financial advice and individual support that is customized to address personal needs and circumstances is critical. Customers want providers that will take the time to get to know them and their unique situation, offering advice and guidance that is for them, not a ‘one size fits all’ approach.
Access to Resources
Customers value resources that are easily accessible, educational materials that can be accessed when convenient for them. Materials such as online webinars, articles, courses and videos that cover financial topics that are relevant to them.
Easy to Use Digital Tools
Customers want easy to use and convenient online tools that can assist them in managing their finances and tracking their financial goals.
Trust and Integrity
It is paramount that Financial Services brands are trustworthy and participate in ethical practices. Customers want to feel confident their provider is providing honest advice, acting in their best interest and putting their financial well-being above their provider making money.
Can financial literacy and wellness support greater connectivity to brands?
The short answer is, yes. Financial Services brands that provide financial literacy, wellness, and preparedness support for customers can experience greater customer connectivity or love. Here’s why:
Trust and Credibility
Financial Services brands that offer transparent, accurate and valuable education resources build trust and credibility by demonstrating a commitment to customer well-being. Customers are more likely to remain loyal to providers perceived as reliable experts in the field.
Customer Empowerment
When customers feel more knowledgeable and confident about their financial decisions, they associate these positive feelings with the brand that provided the education, leading to a stronger emotional connection. Offering tools and resources that enable customers to manage their budgets, planning and finances provides a positive overall experience. This experience can foster brand loyalty and even advocacy.
Long-Term Relationship
Financial Services brands that provide ongoing financial education and wellness programs demonstrate that they are invested in customers’ long-term success, not just making a sale. Feeling consistent value from their Financial Services brands, customers are engaged and less likely to switch to competitors.
Positive Brand Perception
Financial Services brands that actively assist customers achieve financial wellness are perceived to be partners in their lifelong financial journey, rather than just service providers. Investment in financial literacy programs can also enhance their reputation as socially responsible organizations. Deeper, more meaningful connections emerge from customer partnerships, as does positive brand perception in the community, both can drive brand love.
Differentiation in a Competitive Market
A Financial Services brand can differentiate itself from competitors by offering comprehensive financial literacy and wellness programs. Customers may choose and stay with a firm that provides unique value beyond just traditional financial products and services. Satisfied customers who benefit from its financial education support are likely to become advocates for the brand.
What could Financial Services brands do to foster greater financial literacy?
Financial Services brands can contribute in various ways:
Educational Programs and Resources
Offer free workshops, webinars and blog posts that address a range of financial topics from basic budgeting and saving to retirement planning and debt management to more advanced investing strategies. Also providing easily accessible educational content including e-books, articles, and videos can help enhance customer knowledge.
- Research can be conducted to identify the content and format of resources that will drive customer engagement in educational outreach.
Tailored Financial Support
Provide tailored coaching services that assist customers in creating and following personalized plans to their needs and goals. This can help make financial literacy seem more relevant, actionable, and attainable.
- Targeting research can be conducted to understand the needs, challenges, and goals of different customer groups, to allow for personalized outreach and educational content to best fit the financial situation of each group.
User Friendly Online Tools
Leverage technology to develop interactive resources such as budgeting tools, online calculators, and financial goal tracking that can help customers with managing their finances more effectively.
- Innovation discovery research can help identify new online tools and potential digital refinements, gauging customer interest and viability before full implementation.
Transparent Communication
Take actions to ensure all communication about financial products and services is clear, and in consumer-friendly language. Information that is understandable and straightforward about the benefits, risks and associated fees which promote greater trust and confidence in Financial Services brands.
- Messaging research can be used to test any outreach communications to ensure understandability and receptivity, identifying any potential negative or confusing messaging before distribution.
Incentive Programs for Financial Wellness
Introduce programs that reward customers for meeting financial goals such as savings goals or completing financial literacy courses, which can be motivators for customers to take positive steps to improve their financial wellness.
- Qualitative research could be conducted to understand what types of rewards and incentive programs might be of greatest interest and motivation to customers and testing potential reward benefit scenarios.
Community Outreach and Partnerships
Partner with community organizations, schools and nonprofits in local communities to offer financial literacy classes and sponsor local events that focus on and provide free financial education resources. These efforts can help bridge the gap with underserved communities, promoting financial inclusion and empowering individuals to be ‘active’ in their financial wellness journey.
- Online bulletin board qualitative research could be conducted among various community and school leaders to understand receptivity and opportunities for partnering on financial literacy programs with a Financial Service provider to promote financial literacy and preparedness.
Financial Services brands that invest in areas of financial literacy and wellness can create a loyal customer base of informed and confident customers, who feel a deep connection to the brand. They also project a positive image of social responsibility, helping to build a more stable, resilient and financially healthy society. By using insight-driven approaches, brands can prioritize key areas of financial educational content, support, communication, and innovation which ultimately enhance trust and loyalty in their customer partnerships. This will help financial brands garner the strongest return on investment when it comes to deepening relationships and driving brand love.
Differentiate your brand with a financial literacy program. Contact us to learn more.
