The personal finance industry is changing. Companies like Simple and Ally Bank are giving customers tools to make better financial decisions, rather than just being a storage unit for money. To survive in the coming future, banks will need to focus on customer advocacy to survive. That’s what Ryan Caldwell, CEO of MX, said at the company’s recent FinTech conference.
MX offers banks and credit unions a way to connect with customers, offer new services and provide financial guidance.
“The future of banking is going to help you mitigate fraud, default rates, help you provideguidance,” Caldwell said. “The banks that help you provide it soon are going to have deeper roots.”
MX, previously MoneyDesktop, has over 550 financial institutions using their technology to help deepen those roots.
The race to be the place where people store their money, it’s beginning, Caldwell said. If banks don’t start offering advice and truly helping their customers, they are going to lose them quickly.
“What we’re trying to do is take the financial industry to the next level and really bringing the consumer advocacy model into the financial services industry and enable financial institutions to not only be a storer of money but be a financial advisor,” said James Dotter, CFO of MX. “An entity that comes in and says, look you trusted us to store your money, we’re going to take care of you.”