How Financial Literacy Programs Can Give Banks an Edge

Financial wellness and education are key aspects of creating better functioning economies and more equitable societies. Being at the forefront of promoting financial health can also help banks market themselves more successfully and attract better talent. 

That’s the key takeaway from this op-ed piece in American Banker by Patrick Luther, who writes that leading from a financial wellness standpoint is one area where financial institutions can gain an edge over their competitors. 

“By definition, financial services firms are experts in providing products and services people need to ensure financial stability,” he writes.”Extending this expertise into their talent acquisition strategies — and marketing it well — can give the sector a much-needed advantage in the ongoing war for talent.” 

He goes on to list several examples of how banks can do just that, such as loan forgiveness programs and on-demand pay solutions giving employees immediate access to earned wages at any point during the pay period via a digital account.

Banks can only benefit from promoting financial wellness, after all wealthier customers are more likely to have multiple financial products, and may well be vocal brand supporters also. It’s a win-win all around.