People Want Their Banks to Help Improve Their Financial Health

What is your bank doing for you? Is it truly looking out for your financial health or is it just treating you like a wallet? Only 1 in 4 customers say yes.

While most people would like to see their banking institutions help improve their financial well-being, only about one in four customers strongly agree that their banks truly look out for them.

That disconnect is one Gallup researchers say financial institutions can remedy, opening the doors to win-win relationships between themselves and their customers.

To reach its findings related to financial well-being and perceptions of banking institutions, Gallup researchers conducted a web survey in November 2013.

The Retail and Banking Industry study involved 11,809 American adults, ages 18 and older, with active checking accounts at any bank or financial institution.

Perceptions are Telling

Gallup researchers found that when customers strongly agreed their banks looked out for the financial well-being, about 84% were fully engaged and none were actively disengaged.

They also discovered that banks that take the time to address customers’ financial well-being saw strong consumer confidence.

While those findings were quite positive for banking institutions, the problem is that only one in four respondents strongly agreed their banking institutions look out for their financial well-being.

Notably, the 25% of customers with a strong sense their banks were looking out for them also happened to have more products through their financial institutions, including checking and savings accounts, mortgages, brokerage or investment accounts, debit or credit cards.

Based on whether people believed their banks looked out for their financial well-being, researchers found:

• Total number of products at main bank – Do not strongly agree, 5.8; Strongly agree, 6.5
• Percentage of customers satisfied with all instruments they use – Do not strongly agree, 43%; Strongly agree, 86%
• Percentage of total household investments with primary bank – Do not strongly agree, 13.3%; Strongly agree, 25.4%

Connecting with Customers

Gallup researchers also uncovered a number of steps financial institutions can take to help improve customer perceptions. Here are a few of the suggestions:

• Listen for customer goals –Tuning into customers to uncover their individual goals so appropriate instruments may be offered is critical.
• Make all interactions count – With online banking becoming the norm for many, face-to-face interactions are rare and should be taken advantage of. Employees who pay attention to customer needs and help address them during in-person interactions help their banks stand out.
• Use a consistent message – Record customer interactions and information about financial goals in a customer database so all employee interactions (in person, online and on the phone) are consistent and truly address the issues customers care about.
• Keep employee well-being in mind – Banks should offer ongoing education about the products and services they offer so their employees, too, can enjoy financial well-being. Employees who are aware of these services are more likely to use them and are more likely to share them with customers.

The bottom line, Gallup says, is that banks should have messages tailored to help their customers reach their personal financial goals.

“Individualized interactions show customers that the bank cares, and actively helping customers to improve their financial well-being can increase customer engagement and lead to higher profitability,” Gallup concluded.

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