Digital Financial Education to Reach Your Consumers During COVID-19
Financial institutions are rapidly and radically rethinking how to serve consumers during the coronavirus pandemic. With branches closing, the stock market fluctuating, and consumers facing sudden financial stress and anxiety, financial institutions have adopted many new ways to help consumers, as was recently outlined by The Financial Brand
Author Jim Marous notes, “a combination of a lack of simple digital product offerings as well as an inability to deliver highly personalized financial solutions seamlessly,” is leaving many banks and credit unions unprepared and unequipped to meet consumer needs.
Measures focused on putting more cash into consumers’ pockets are common strategies. Offering loan repayment deferrals, increases in credit card limits, and eliminating overdraft fees are all easily-implementable changes.
But cash-centric solutions are like bandaids, as they temporarily alleviate anxiety and stress, but don’t provide any additional knowledge to boost consumer confidence. Moreover, cash-centric solutions don’t help banks and credit unions to bridge the approachability gap, which has only widened as branch-banking has become unfeasible in the last week.
To maintain and grow consumer relationships, financial institutions must beef up their digital touchpoints right now. One effective strategy is to provide highly personalized financial education resources to consumers via digital and mobile channels. Especially in a time of economic downturn, financial institutions can take advantage of the opportunity to educate their consumers to instill confidence, recommend appropriate products and services, and deepen brand loyalty.
Social distancing challenges all of us to become more creative in how we stay connected. Given the scale and severity of the COVID-19 pandemic, financial institutions can’t delay in taking action. Actions taken in moments of crisis can make or break long-standing reputations. Consumers need personalized and relevant financial education now more than ever, and financial institutions are well-positioned to deliver it.