Your Biggest Differentiator: Caring about Customers

Executive Summary

• Consumers across all generations want to know their financial providers actually care about them. This matters from Baby Boomers who feel overlooked after retirement age to Gen Z who finds hope in knowing institutions are working to help.
• While 58% of consumers expect personalized experiences and 65% want actionable insights based on their data, many providers fall short. Banks must use it meaningfully to deliver relevant messages, recommendations, and support that drive better financial outcomes.
• consumers consistently want help with fundamental questions like “How much can I save?”, “Am I spending too much?”, and “How can I cut expenses?” Providing timely, personalized nudges and insights at the right moments can significantly boost engagement and help people achieve their goals.

What really matters most for engaging and supporting consumers? A few weeks ago, MX gathered more than 100 senior leaders from banks, credit unions, fintechs, and partners for our annual Money Experience Summit: three days of conversations, sessions, and networking on key topics including fraud, primacy, financial health, Open Banking, and more.

One of the most compelling sessions of the week was when we brought consumers from every generation — Gen Alpha to Baby Boomer — on stage. The panelists shared their perspectives and experiences with managing their money directly to the financial providers they use in their daily lives.

Yes, they want financial providers to know them. They want products and services that meet their needs. They want to better manage their spending, saving, and more. But, the key takeaway? Consumers want to know that financial providers care.

During the panel discussion, our Baby Boomer representative shared that he felt that when you turn 64 or 65 years old, financial organizations think you’re no longer a consumer. “I’d like them [financial providers] to realize that Baby Boomers … we are consumers.”

On the flip side, our Gen Z representative shared in a smaller roundtable discussion that knowing financial institutions are having conversations at events like this — knowing that we care and want to help — gives her hope.

So how do we show consumers we care about them and are here to support them? There is no silver bullet answer, but here’s a few things every financial provider should be thinking about:

Want more insights like these? Check out MX’s content hub: Data in Action

Put What You Know About Consumers Into Action

Our research is clear. More than half of consumers expect their financial provider to leverage the data they have about them to personalize their experience (58%) and use the data they have about them to provide them with actionable and clear insights about their finances (65%).

Consumers want their financial providers to know them. And, they expect financial providers to use their data to drive better outcomes for them.

But, many financial providers fall short when it comes to using data effectively. In fact, 30% of consumers agreed they often see messages from their financial provider that are not personalized or relevant for them. And, less than half of consumers (42%) believe financial providers use their data only in ways that will benefit them as consumers.

It’s not enough to simply have data about your customers. You have to actually use it to make a difference. When you can understand what’s going on in someone’s life, you can show up with relevance, confidence, and care.

Provide Education And Tools To Help Consumers Reach Their Goals

Over and over again, we heard our consumer panelists say they wanted more help and education. Education on how much they can and should be saving. Planning for retirement. Saving for a home. Paying for college. Prioritizing expenses.

Everyone is different but the need for education is consistent. And, it starts with the basics. When we’ve asked consumers in the past what question is most important for them to be able to answer when managing their finances, the top three were:

• How much can I put towards debt or savings?
• Am I spending more than I should?
• How can I cut expenses?

Financial providers have a significant opportunity to deliver personalized nudges, insights, and recommendations to drive meaningful action for consumers. When you deliver the right information at the right moment to the right consumer, you can drive better outcomes for both consumers and your business. For instance, OneUnited Bank drove an 18% increase in product engagement in the first month, just by helping people better see and understand their finances.

Remember You’re A Consumer Too

In a room full of financial services executives, you’ll find the same varied experiences and money management practices — both good and bad — that you see across any group of consumers. Some are financially strong and working towards specific goals. Some are making ends meet but want to do more. Some are financially vulnerable and struggling.

And, as financial services industry professionals who keep finances top of mind, the experiences can be multiplied. Instead of 5 to 7 accounts like the average consumer, how many of you have more than 10? More than 20? Probably quite a few of you.

As your financial institution or fintech works to create innovative, personalized experiences for consumers, think about your own personal financial needs. Your experience matters. And, we care about it too.