An Opportunity for Community Banks and Credit Unions
The ability to effectively distinguish themselves from their national big chain counterparts has been the rallying cry for most community banks and local credit unions. And if the reports of market share losses over the last two years are any indicator, it’s a battle that most are losing.
The ugly truth is, your customers will likely have to walk or drive by three to five national bank branches to get to yours; so, you better have something truly special to give them a reason to ignore all of the glitz and glamour your much better financed counterparts have to offer.
From the website www.thefinancialbrand.com, come the following insights
- Consumers are worried about their financial health across virtually all demographic segments. For many, this may mean living paycheck to paycheck or worse.
- Unsatisfied with offerings from their primary financial institution, most consumers rely on a hodgepodge of paper and digital tools, from monthly statements to electronic tracking tools available online and on mobile devices. There is a need for better options that are real-time, consolidated and easy to use.
- Security options top the list of desired tools for managing finances and protecting identity.
- As consumers become more aware and comfortable with digital apps across industries, they are more comfortable with digital banking solutions, opening the door for organizations that can provide integrated financial wellness applications.
And this is where community banks and credit unions can take advantage of the significant opportunity the AI-based financial wellness tools and cutting-edge security solutions can provide them.
Most key to these solution offerings are proactive tools that provide financial wellness insight to the customer as well as alerts and notifications regarding when bills are due or potential cash flow challenges that are based on past spending and income trends.
Consumers are demanding less cumbersome and time-consuming budgeting tools. Instead of reporting that is solely based on past transactional history, present-day AI solutions are capable of crafting highly personalized customer experiences and targeted financial guidance which is based in real-time, is contextual and forecasts rather than simply reports.
And these are offerings that even the 500 pound gorillas in the marketplace are slow to offer. Today more than any other time in our history, community banks and credit unions must heed the sage advice so many of us have heard in the past.
Innovate or die.