Bridging the financial literacy gap: The crucial role of bank-fintech partnerships in wealth transfer readiness

by Tanya Van Court, Goalsetter, a CUNA Strategic Services alliance provider

In the face of an imminent and historic wealth transfer from Baby Boomers to their descendants, the importance of equipping banking members with robust financial education has never been more pronounced.

This transition represents a critical opportunity for individuals and families to not only preserve the wealth they inherit but also to lay the foundations for generational wealth in the future. However, this opportunity comes with a significant caveat: the readiness of the recipients to manage and grow this wealth responsibly. The stark reality is that the United States is grappling with a considerable gap in financial literacy, a gap that threatens to undermine the potential benefits of this wealth transfer.

Data from the Goalsetter x Mastercard Financial Literacy Survey 2023 paints a concerning picture: 87% of teenagers lack basic money management skills, and 80% of parents believe their children are not adequately prepared in financial matters​​. These figures underscore a pressing need for comprehensive financial education, not as a luxury, but as a necessity for financial well-being and stability.

Credit unions, are at the forefront of addressing this educational deficit. By forging strategic partnerships with fintech companies with a proven track record of success and engagement with youth and families, these institutions can provide their members with engaging, age-appropriate financial education tools and resources.

The rationale for integrating financial education into banking services is twofold. First, it empowers members to make informed financial decisions, reducing the risk of financial missteps that can lead to debt, poor credit, and other financial challenges. Second, it positions financial institutions as trusted advisors and partners in their members’ financial journey, enhancing customer loyalty and retention.

However, the challenge extends beyond merely providing financial education. It’s about delivering this education in a manner that resonates with the digital-first preferences of younger generations. Interactive, multimedia content, including videos and gamified learning experiences, can significantly enhance engagement and retention of financial concepts. According to the 2022 Raddon Survey, videos are the second most preferred source of financial advice among Gen Z, following advice from family members​​.

Moreover, the demand for financial education extends to parents, many of whom feel ill-equipped to teach their children about finances. A significant 91% of parents have expressed interest in using a finance app to educate their children about money, and 71% prefer this service to be offered by their existing financial institution​​. This highlights a substantial opportunity for credit unions to deepen relationships with their members by addressing a critical and widespread need.

The impending wealth transfer from Baby Boomers to younger generations is not just an event; it’s a pivotal moment that could shape the financial landscape for decades to come. As such, the role of financial institutions in providing effective financial education cannot be overstated. Partnerships with fintech companies offer a viable and effective pathway to achieving this goal, leveraging technology to deliver engaging, relevant, and impactful financial education. Such initiatives not only prepare individuals and families to manage and grow their inherited wealth responsibly but also contribute to the broader goal of closing the financial literacy gap in the United States.


Visit our CSS website to learn how Goalsetter can help you drive membership growth and operational excellence at an attractive price.

Tanya Van Court

Tanya Van Court

Tanya Van Court is a former Nickelodeon, Discovery Education and ESPN executive who was inspired by her 8-year old daughter to bring her passion for kids, families, and cutting-edge digital ... Web: Details