The news: North American banks and credit unions understand that consumers lead digital lives, and that they must offer digital tools to help customers manage their finances. But consumers may not be getting the tools they need, according to a report by Personetics commissioned by Forrester Consulting.
“The Spotlight on North America: Banks and Credit Unions Need to Promote Customers' Financial Well-Being” report surveyed 184 North American digital business and strategy decision-makers in August 2022 on digital money management.
Key initiatives: Banks and credit unions are prioritizing their customers and their digital transformation in 2023.
Aside from serving customers, banks and credit unions believe that offering digital money management tools also benefits their business.
Flawed implementation: But there’s a clear disconnect between the intention behind digital management tools and their execution. Eighty-eight percent of banks and credit unions surveyed said that less than half of their customers actively use the tools they provide.
The report posits that the tools currently on offer don’t do enough to cause consumers to make a meaningful change to their financial behaviors. That’s because they don’t offer solutions that are specific to a customer’s needs. It also suggests that most money management tools put the burden of data collection on the consumer, requiring them to manually input their financial information.
But banks and credit unions listed their own hurdles in implementing effective money management tools.
What can banks do? The report offers a few suggestions on how banks and credit unions can improve the effectiveness of their digital money management tools.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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