Maximizing the Impact of Your Financial Wellness Marketing: 4 Key Strategies

Financial institutions such as banks and credit unions frequently provide financial wellness advice through blog posts, online courses, or newsletters. However, engaging customers with this content remains a significant challenge. What does it take to drive customer involvement?

Despite offering a variety of educational resources, many customers either don’t use these tools or are unaware of their availability. Additionally, customers who encounter generic advice on topics like credit improvement can quickly lose interest.

However, the rewards for getting it right are substantial. Banks that offer personalized financial wellness tools report higher engagement, increased deposits, and improved customer satisfaction. According to a survey by Personetics, 58% of consumers would consider switching to a financial institution that provides features to help them budget more effectively and save more. Yet, less than 10% of consumers reported receiving helpful financial management communications from their banks.

Successful Financial Wellness Efforts

While many institutions struggle with engagement, some have achieved notable success. Bank of America (BofA) introduced a digital tool called Life Plan in late 2020, making it a key part of their customer engagement strategy. 

Accessible via BofA’s mobile app and online banking platform, Life Plan enables customers to set and track financial goals, such as saving for a vacation or purchasing a home, with personalized guidance and recommendations. By March 2023, more than 10 million customers had used Life Plan, collectively adding over $55 billion to their accounts and scheduling 2.3 million follow-up appointments with financial specialists. NidhiNidhi BofA attributes the success of Life Plan to its personalized advice and integration of financial health into the overall customer experience and business strategy.

Similarly, BBVA reported that by the end of 2021, over 11.7 million customers worldwide had utilized its digital financial health tools, a 48% increase from the previous year. Customer satisfaction was notably higher among users of these tools. Instead of generic advice, BBVA sends personalized messages based on customers' financial situations, offering relevant guidance.

Defining and Measuring Financial Health

The terms “financial wellness” and “financial health” can be ambiguous, but the nonprofit Financial Health Network has developed an eight-point assessment tool to clarify these concepts:

The Eight Indicators of Financial Health:

Spend :

1. Spend less than income.
2. Pay bills on time.

Save -

3. Have sufficient liquid savings.
4. Have sufficient long-term savings.

Borrow -

5. Have manageable debt.
6. Have a prime credit score.

Plan -

7. Have appropriate insurance.
8. Plan ahead financially.

Consumers are categorized as financially healthy, financially coping, or financially vulnerable, with only one-third falling into the financially healthy category. This leaves a significant opportunity for banks and credit unions to offer financial resources and tools.

Four Strategies to Enhance Engagement with Financial Wellness Offerings

1. Make Financial wellness a core business strategy 

Financial institutions often treat financial wellness content as an add-on rather than making it a core part of their strategy. However, when they integrate financial wellness into their core business approach, it allows them to offer more personalized support that meets individual consumer needs. By using advanced data analytics to understand how much people earn, spend, and save, banks can give targeted advice on things like budgeting, saving up, and reaching financial goals. Dealing with the complexities of financial health means coming up with solutions that work for different financial situations and goals. It's also crucial to communicate effectively, especially during tough economic times, using a caring approach that builds trust and encourages people to use financial wellness tools. Continuously checking metrics like how engaged customers are and how satisfied they are helps these efforts stay effective and able to change with what customers need, so they can support lasting financial health.

2. Provide Hope to Consumers

Crafting campaigns that offer empathy and reassurance helps build a foundation for positive financial behaviors. For example, many Millennials and Gen Zers aspire to homeownership but doubt its affordability. Offering hopeful, personalized guidance at the right moments can significantly influence their financial journey.

3. Focus on Consumer Needs

Financial institutions are catching on: rather than guessing what you need, they're asking you directly. Through focus groups and research, they're diving deep into what matters most to consumers like you. Take GreenPath, for instance—they've hit the mark with content on managing debt and navigating inflation, delivered through webinars, blogs, and guides that really resonate. This approach ensures you get information that's not only relevant but also tackles the financial challenges you face head-on. By listening to your feedback, banks can keep refining their strategies to bring you content that hits home. This personalized approach doesn't just inform; it empowers you to take charge of your finances, making smart decisions that lead to real financial health.

4. Measure the Impact of Financial Wellness Efforts

Beyond tracking engagement metrics, financial institutions should measure the impact of their financial wellness initiatives. Analyzing outcomes such as changes in overdraft frequency, emergency savings, or debt levels among those who engage with the content can provide valuable insights. Understanding which content delivery methods are most effective is also crucial.

A study on the return on investment for financial literacy programs suggests these efforts can benefit the bottom line, leading to greater customer loyalty and increased usage of savings and investment products.

By integrating financial wellness into their core strategies, providing empathetic and relevant content, and measuring the impact of these efforts, banks and credit unions can significantly enhance customer engagement and satisfaction.