The current economic scenario indicates uncertainty in the financial future of many Americans. As the economy continues to be unpredictable, many Americans are feeling insecure about their financial future. Younger generations in particular lack the knowledge and resources required to manage their finances; yet even with this obstacle, they are not receiving sufficient assistance from banks or credit unions. According to a survey, stress related to finances is high among the younger adults aged 18 to 43 years at 82% and 81% among those in the age group 26 – 43 years.

Financial institutions can shift their focus to financial wellness through three crucial steps as per Bahaa Abdul Hussein:

1.Take action on Transactional Data

As financial uncertainty continues to plague many Americans, credit unions and banks have an advantage in terms of offering financial guidance and advice. They own a wealth of data regarding their customers, from income levels and spending habits, to loan payments and overdrawn accounts. Institutions must make use of the insights gleaned from these datasets by using them as part of their comprehensive financial wellness strategy. This will enable credit unions and banks to offer better assistance to their consumers who intend to achieve greater stability during uncertain times.

2. Connect on a Personal Level

Financial institutions need to go beyond simply looking at demographics and life events to understand an individual’s financial needs. By leveraging transactional data, they can provide tailored experiences that suit the consumer’s exact moment of need, on their preferred channel. This will enable customers to make informed decisions in various matters. These institutions can also consider virtual as well as live support as this humanises the experience.

3.Offer Tools to Empower Finances

Financial literacy has become essential to leading a successful life. This has led to more states recognizing the importance of teaching it in the classroom. However, there is still much progress that needs to be made for all individuals to gain access to the necessary knowledge and resources about personal finance. From grasping topics related to debit and credit to being updated about payment choices available, everyone should have the opportunity for proper education on money management.

Banks as well as credit unions must act swiftly to provide their customers with the knowledge and resources required to build a secure financial future. By educating consumers on how to manage their money, they not only become more engaged but also create greater revenue opportunities through cross-selling other services.

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