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Delivering Personalized Banking through Financial Wellness

Molly Irelan

Product Marketing Manager

Almost every digital experience a consumer has in their daily lives is personalized, whether it’s their photos app creating a memory or their streaming service recommending a movie. These interactions are customized and tailored to that individual, making them feel understood. They also develop an expectation for personalization across all digital interactions, including their digital banking platform

In a recent Alkami-hosted webinar with SavvyMoney and Chimney, we discussed how banks and credit unions can deliver personalized banking experiences through financial wellness solutions. This blog shares strategies for accelerating revenue opportunities, improving account holders’ overall financial well-being, and driving digital banking engagement. Continue reading to learn more!

Unpacking the impact of financial wellness

When thinking about health, we often think about physical or mental, but forget an important third component which is financial. These three areas can make a critical impact on one another. 

“Financial health is achieved when individuals and families can manage their day-to-day financial lives, weather financial shocks such as unexpected medical events, and are poised to pursue opportunities and thrive,” said Jennifer Tescher, CEO of Financial Health Network.

If someone is experiencing poor financial health, it could lead to stress or delayed medical treatment. Alternatively, good physical and mental health could improve their financial prospects due to fewer sick days and a better ability to focus.

74% of working Americans are stressed about their personal finances

Source: CNBC, 2023

A 2023 Forbes Advisor survey revealed that nearly 70% of respondents either identified as living paycheck to paycheck (40%) or—even more concerning—reported that their income doesn’t even cover their standard expenses (29%). Account holders from all generations are seeking personalized assistance, education, and tools to build a bright financial future. 

If consumers are not able to get the experience they need, they are not afraid to look elsewhere. In fact, consumers are already utilizing a variety of apps to manage their finances – digital banking, P2P, digital wallets, investments, and more. Every competitive relationship creates a blindspot for financial institutions and opens the door for attrition as account holders receive compelling third-party offers. 

How can banks and credit unions cater to these consumers in need of support while simultaneously strengthening the banking relationship? 

Delivering credit score insights & education

Powered by Alkami’s Partner Program, SavvyMoney empowers financial institutions with tools to support digital banking users on their financial wellness journey. Banks and credit unions that leverage SavvyMoney can give users unlimited access to their credit report, real-time credit monitoring, actionable financial advice, and financial literacy. Financial institutions also benefit from targeted pre-qualified and pre-approved offers – maximizing campaign results for your marketing team.

“Insider Intelligence forecasts have found that 16.1% of US adults use AI-driven PFM tools—which we expect to reach 20.5% by 2027,” (Insider Intelligence, 2023).

Per a New York Times Article, as of January 2024, Mint has shut down and encouraged their 3.6 million users to migrate to another Intuit-owned service, Credit Karma. Now app users will no longer benefit from the budgeting features they were accustomed to within Mint’s experience. Banks and credit unions should capitalize on this market opportunity by delivering the real-time insights and personalized banking experiences today’s consumers want. 

To address this need, financial institutions leveraging SavvyMoney can introduce an assessment that measures different aspects of a user’s financial health, including household spending, financial planning, and monthly budget. Then financial institutions can recommend personalized actions for support with budgeting and debt-to-income ratio. This positions financial institutions as the trusted advisor. Providing actionable next steps and education encourages consumers to improve their credit and move into higher credit bands.

Introducing home value tracking for next-level personalized banking

In terms of financial wellness, it seems natural to only think of one side of the coin, consumers who are struggling and in need of support. What about the consumers who are prime candidates for your next best offer and looking for tools for managing their assets and wealth-building?

Just like any other investment, homeowners love to track the value of their largest asset. However, traditionally they’ve had to leverage third-party sites like Zillow or Redfin for home value changes – leaving financial institutions out of the loop. Banks and credit unions are missing critical data about their account holders’ property values, home equity, and mortgage information. 

What if your institution could tap into property data and gain insight into your homeowners’ equity to deliver the personalized experience and offers users are looking for? Through Alkami’s partnership with Chimney, your financial institution can empower homeowners with financial tools, data, and insights that allow homeowners to track home value, see available equity, and view personalized offers within digital banking. 

In addition, Chimney makes property data valuable and relevant for back-office teams. Now, financial institutions can take advantage of portfolio intelligence reports to easily identify which homeowners are ready to take action, as well as reduce overhead and manual verification efforts with an automated API for property data.

Harnessing data for personalized offers and always-on marketing

By discovering insights into competitively-held accounts, financial institutions have the opportunity to retarget those consumers and grow their share of wallet. Winning back that account holder and cultivating institutional loyalty can be easier said than done. How can financial institutions create attractive offers that strengthen banking relationships? 

Leveraging SavvyMoney’s solution enables financial institutions to execute marketing automation and personalization for pre-qualified and pre-approved offers. 

Similarly, Chimney’s solution keeps homeowners engaged with alerts on changes in home value and targeted offers delivered on auto-pilot.

While SavvyMoney and Chimney’s marketing capabilities can work standalone, when combined with the power of Alkami’s digital banking platform, financial institutions can deliver personalized offers directly within the experience.

Activating the digital banking platform as a destination for engagement 

Per Insider Intelligence, “despite the prevalence of digital interactions, nearly 63% of respondents admit that most of their mobile banking log-ins revolve around checking their account balances.” To make the digital banking platform a center for engagement, banks and credit unions should deliver a complete financial picture that keeps consumers coming back for more. 

At Alkami, we are reimagining financial wellness to bring consumers a personalized banking experience that gives them the tools they need while uncovering key insights for your institution. Develop stickiness with your account holders, elevate financial wellness, and unlock new revenue streams with a comprehensive suite of wellness products and services.

Interested in learning more about Alkami’s suite of financial wellness products?
author avatar
Molly Irelan Product Marketing Manager
Molly Irelan is a Product Marketing Manager at Alkami who specializes in digital banking, digital account opening, card management, and financial wellness solutions.
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