Banking: How to collaborate on your clients' personal finances

In times of uncertainty such as the ones we live in, personal finance began to occupy an even more important space in people's lives. Projecting some expenses, such as school for boys, vacations or changing cars, can be a real challenge.

More than ever, people expect relevant and personalized support from their banks to help them make better decisions.

In addition to accelerating the growth of digital banking, the current context opens up new opportunities for banks to become true financial references for their customers. And it's not about sending them generic information about financial offers, but about providing them with specific tools and services, as well as suggestions and personalized messages about savings, investments, expenses, etc.

We are talking about the bank assisting its customers through Feeds customized that not only provide news that impacts each user's finances, but also alerts related to accounts (balance sheets, upcoming maturities, etc.), Insights about how market changes affect investments, analysis of spending patterns, revisions of invoices that alert to anomalies, notifications about services with better rates, and other examples.

And while many digital tools and services from Personal financial management (PFM) were already on the agenda of some financial institutions, the truth is that the next revolution in personal finance is much more comprehensive and combines technological platforms with specialists and consumers. This integration, in addition, comes with a powerful Engagement on behalf of customers.

Personal finances under control

The needs of each client take center stage in the new personal finance experience. The fact that the bank brings a person closer, for example, to the possibility of visualizing their ordinary monthly consumption, helps them to forecast expenses and to realize savings for specific goals. In the same way, the bank can send alerts in real time to avoid overdrafts, starting from a minimum amount that the customer chooses in their account balance.

Managing personal finances properly, as we know, is crucial in people's lives, although it can be a difficult task. In fact the 75% of millennials consider their “financial life” to be somewhat or very complex.

This is why banks, in order to stand out as financial references, must help easily and through practical options that guarantee the financial security of their customers in the long term.

How can banks be relevant to people's lives?

Among the services, banks can offer automated savings programs specifically aimed at making small and regular deposits. Thus, customers choose the amount to be transferred and the frequency: this method is particularly useful for achieving objectives, such as renovating the kitchen, changing the car or taking a trip.

Close to 50% of clients say that trust and a good investment record are the main reasons when choosing a financial advisor.

Source: Qualtrics Experience Management

In turn, the interesting thing is that people no longer need to resort to a app outside the bank to track and categorize your expenses, set savings goals or put together a spending plan. In effect, banks can offer online or mobile budgeting tools so that customers are able to control their finances more easily and integrated with other apps and banks through the Open Banking.

In addition, the advance of omnichannel banking implies the possibility of making check deposits via Mobile. And another way for banks to save their customers time is through automatic payment and online of all your bills, to ensure they pay in a timely manner, avoid late fees and improve your credit.

The truth is that financial services have evolved and consumers demand that banks do more for them, that they be more present and proactive. That is why, through the examples we have seen, the bank as a financial reference and technology for banking, are able to bring more pleasant and secure experiences to customers, so that personal finances do not become a headache. What's more, solutions and services tailored to each client make it possible to quickly achieve personal and family goals.

Is your bank ready to become the financial advisor your clients are looking for?

At Infocorp we can advise you to take the next step.

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