The Coronavirus pandemic has created financial stress for many this year, where Americans faced financial difficulties. These difficulties were especially problematic for millennials coming from unemployment. Millennials have fewer savings than other groups, such as baby boomers, and were concerned about ongoing debt and financial obligations.
Financial institutions can help these individuals relieve stress, according to Raddon, by offering specific product features and services that can alleviate financial stress. Some of these features include:
- Text or app-based transaction alerts. These alerts will be a vital factor for notifying an individual on where their money is going and keeping track of spending.
- Services that monitor and alert ongoing subscription charges and fraudulent activity.
- Video financial education that is no longer than two minutes that is to the point
- Offering mobile-only banking accounts on mobile apps. There is a strong interest regarding these mobile-only banking accounts in younger generations.
Additionally, offering a blend of the workplace with financial wellness is a factor financial institutions can take to help individuals financially stressed. BankMobile uses a platform called Workplace Banking, where employees can receive an early payday, money management tools, a banking app, and access to fee-free ATMs.
Platforms such as Acorns is fantastic for pulling installments out of checking accounts into an app where consumers can set savings goals. Financial institutions can factor in similar programs for helping individuals save without them “noticing” in a sense.
Financial institutions can provide their customers with tools and resources to tackle the financial stresses, especially during COVID-19. Creating customized customer journeys, giving structure to help individuals save and invest their money correctly, and providing financial education will help stress decrease and peace of mind.