These days, we consistently hear about how strong the U.S. economy is, with home values quickly increasing and low unemployment creating lucrative opportunities for workers. Despite that, many Americans are struggling financially and are unprepared not only to reach far-off goals like retirement but even to cover standard life expenses and debt management. According to a new study from Bankrate, almost 25% of adults have no money saved to cover expenses after a job loss or other emergency, and a quarter of millennials have no emergency savings of any sort. This lack of rainy-day savings is leading to record levels of household debt. The Federal Reserve Bank of New York noted that household debt increased by $114 billion in just the second quarter last year.
It’s clear many of your customers need financial guidance and advice. Luckily, your financial institution is in a great position to ;provide that assistance! Offering customers help with managing debt makes your financial institution stand out in a crowded marketplace. Especially as more and more electronic competitors and budgeting or money transfer apps attempt to lure your customers away, outstanding service and showing customers you care about their future will make customers remember your institution in a positive way and wish to deepen their relationship with you.
Since ;it’s pretty hard for human beings to change behavior if they don’t understand the topic of discussion, financial education is the real key to successful debt management. Investing time and effort into providing customers with necessary financial education and knowledge is an investment in stronger relationships with your institution’s customers.continue reading »