January 14, 2020

Build a Digital Relationship with Financial Wellness

Financial Wellness

by Brent Dodson, Senior Product Manager, Alkami

Brent Dodson, Senior Product Manager, Alkami

A large percentage of Americans struggle to effectively manage their personal finances.

Specifically, more than half of millennials and 32% of Americans do not devote time to managing their personal finances.

Early digital financial wellness tools didn’t move the needle for most Americans in realizing their financial goals. At the Megabank and fintech level, new data-driven technologies have reinvigorated the pursuit of meaningful digital financial wellness solutions.

Yet, in reality, regional and community banks and credit unions are better positioned to utilize financial wellness tools to build and grow user relationships. The only requirement is finding a digital banking platform that provides diversified and integrated financial wellness solutions.

Build a Digital Relationship with Financial Wellness

A growing demand for financial wellness

When financial wellness first appeared on the market, it didn’t make a major impact on most users. The technology wasn’t advanced enough to do the work for users or provide the insights they hoped for. The mobile revolution was also slow to reach banks and credit unions. That tepid initial response from users still makes some financial institutions (FIs) hesitate when considering what role digital financial wellness can play in their user engagement strategy.

With advancements in data management and analytics, artificial intelligence, and personalization, financial wellness finally has a home in digital banking. Megabanks and fintechs have been leading the charge, as shown by the large growth in personal financial app usage in 2019. Innovative financial wellness solutions are still not the norm for every regional bank and credit union. Many have yet to realize the potential of new technologies their digital banking platforms offer.

Become the preferred banking option

Megabanks and fintechs provide a diversified set of financial services, often available with the tap of the mobile device. Deposits and money movement have become increasingly fluid. Yet user’s relationships with these institutions and companies remain largely tactical.

Once there is parity within the digital tooling space, a major differentiator can take hold for regional and community FIs – community and connection. If the digital platform is effective, financial wellness coaching can be scaled to the right users at the right time in the right way. This just doesn’t happen with massive banks or tech apps.

Digital banking platforms have evolved, allowing banks and credit unions to deliver a deeper, more personalized experience to users. A platform can provide many third-party integrations covering the broad array of tools necessary to tailor financial wellness for users.

Banks and credit unions may look at the market and ask themselves how they can become their users’ primary banking option. Perhaps the goal is to become a user’s most trusted banking option. Having a rock solid digital financial wellness offering will go a long way towards building that.

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