Phase-in financial alerts to better engage consumers

by: Brian Day

To increase mobile banking adoption and engagement, credit unions and community banks should consider taking a more active role in helping consumers proactively manage their finances in a digital age.

One way to achieve this is through alerts. Beyond simple balance and transaction updates, alerts provide an opportunity for greater interaction with the banking consumer. This, of course, can lead to increased engagement, lowered servicing costs and even potential revenue-generation.

Many of today’s tech-savvy consumers expect their financial institution (FI) to provide real-time information about their financial accounts. In fact, 74 million American consumers currently receive online financial alerts. Many of these consumers are looking for their FI to move beyond simply facilitating their financial activity to becoming a part of their everyday, digital lives. Expanding the number and variety of alerts offered is one way FIs can significantly increase consumer engagement and effectively deepen that relationship.

With such an expansive array of potential alerts, it’s recommended FIs create a comprehensive alerts strategy, phasing in the following five categories.

continue reading »