Financial Guidance for the Many, Not the Few

In a time when financial resources are plenty and open data is becoming more accessible, why do one-third of consumers feel financial providers don’t do enough? Financial institutions and fintechs must work to build solutions and awareness that prioritize financial wellness that reach the majority of consumers, instead of the few. 

A panel of industry experts discussed leveraging technology to personalize financial experiences, the benefits of value-based saving, and how to measure the return on consumer relationships at this year’s Money Experience Summit.

Financial Health versus Financial Wealth 

Building financial strength is a continuous process, not a one-time event. This, paired with the ever-evolving landscape of the financial ecosystem, has inspired organizations to focus on continuous learning, personalized investment frameworks, and employer-driven initiatives to support consumers with ongoing, engaging experiences. Finding creative solutions to actively shape the financial well-being of these individuals is key as consumers navigate the complexities of financial health. 

Designing Customer-Centric Products

A large part of financial wellness is dependent on establishing goals or creating value-based wealth management. By optimizing goals and shifting the risk paradigm, this approach considers emotional concerns about achieving life milestones, like sending a child to college or purchasing a home. By creating a personalized portfolio and actional advice, consumers can more easily work towards the objectives they’ve identified as priorities. This emotional intelligence also comes into play in organizations' product development process. In today’s age of hyper-personalization, the importance of curating and analyzing user data is key. 

The Human Element in Financial Technology 

Despite advancements in data and artificial intelligence, the human touch remains pivotal. This emphasis on deeper integration of the human element in financial programs will foster genuine connections and user engagement. One element of this is empowering consumers to budget effectively and save strategically by incorporating data that provides them with a comprehensive view of their financial landscape. Another concept is establishing employer-sponsored emergency savings to help users safeguard unforeseen expenses and create a pathway to start saving for retirement. As the industry continues to innovate, the intersection of empathy and technology emerges as a driving force, promising a more holistic and user-centric approach to financial well-being. 

Measuring Success Based on Relationships not Acquisition

Tying financial wellness programs to profit-centric motives undermines the purpose — which is not client acquisition but rather to strengthen consumer relationships. With return on investment (ROI) measured through the lens of strengthening individual relationships, organizations are able to more easily focus on outcomes.