Banking is a unique industry in that “everyone needs it,” yet there is a wide range of how customers interact with financial institutions. Digital solutions are the bare minimum expectation; building bank loyalty will come from becoming a trusted source for all banking needs — including financial literacy.
A survey from Credit Karma found that 56 percent of Gen Z and millennials seek financial advice online or through social media (including places like YouTube and TikTok). But the same survey found that this demographic doesn’t necessarily trust these sources.
Community banks can build customer loyalty and a higher customer lifetime value by providing consistent financial education. Lifetime value is notoriously difficult to calculate, but longer relationships often equate to more banking services (such as mortgages). And these relationships can grow when your bank is the primary source of information when a customer needs these additional products or services. Why seek out a new financial institution if one’s current bank provides the product needed and the information to make a decision?
These are not aggressive sales or marketing tactics but instead building a library of resources for customers. You’re sending a message: “We’re here to help, and we have the expertise to answer your questions.” After all, if customers take the time to read a resource, they should have learned something by the end. You’re trading attention for value.
Financial education can come through a number of sources, including newsletters, blog posts, live or recorded webinars, and more. Tips can be provided through online banking, with a link to learn more. Everyone consumes information differently, and so engagement needs to happen across multiple channels.
The point is for your bank to be that trusted source when your customers need it so that they continue to turn to you for all of their banking needs.