Take Financial Wellness Beyond “Nice to Have” Features

The last fintech wave was decidedly driven, like today’s burst of interest in AI, by the follow-on effects of the new digital age that has altered the entire marketplace in the past 20 years.

We saw it hit retail first. And now it has landed squarely in retail and SMB banking.

While that wave was moving slowly for many years, it still managed to take many community banks and credit unions by surprise. 

One of the biggest attractions of neobanks and digital banks has been their focus on providing more customer/member-focused services than traditional financial institutions have historically, like early access to paychecks, low or no overdraft and non-sufficient funds fees and a digital-first experience for people that bank at their chosen time, rather than their FI’s.

Brick and mortar banks have generally stuck to their knitting - providing a secure place for deposits, loans, and safe interest-bearing products. But digital banking has brought in a number of customer-focused features that traditional banks couldn’t pull off in the analog world.

This democratization of services - customer-driven change, rather than what banks choose to provide - is a significant shift in delivering value to customers/members. But this shift isn’t simply focused on digital banks and fintechs however, but traditional FIs as well. 

For example, financial wellness has been a significant focus of digital banking. The baseline tools available - cash flow, net worth, incorporating investment portfolios, credit scores, etc. - make it a much more compelling opportunity for value-added features for all FIs.

But financial wellness is a much broader category than many digital offerings provide. What’s more there are features that community FIs can add that can actually be a driver for more revenue and organic growth.

Digital Estate Planning

One of the best aspects of digital financial services is that many tasks that previously had to be done by expensive professionals - lawyers, CPAs, etc. - can now be done by an individual online.

And that includes fundamental documents that fall into the estate planning arena.

Since more community FIs are looking for alternative revenue sources as megabanks and regionals encroach on their markets, helping customers/members get their estate planning in order is a great way to introduce other financial services that your FI provides, from  Wealth Management, Trusts, Investments Services, and Private Banking.

Creating an avenue to these premium services not only helps customers/members build a deeper one-stop financial relationship with your FI. It simplifies the scattered nature of many individuals' financial lives and consolidates them with one trusted financial partner.

The first step: to tell your customers/members that estate planning isn’t just for the 1%. Anyone with a house, and/or a 401(k), has a reason to put together an estate plan.  

     The benefits of an estate plan:

• Minimizes taxes
• Prevents family squabbles
• Clarifies directives
• Avoids probate court
• Protects family assets
• Protects heirs

Today, there are digital estate planning products that can deliver fundamental core services that can benefit many of your customers/members.

What’s more, having these services accessible to your customers/members allows you to qualify individuals for Wealth Management services, further building primacy for your FI.

And for those customers/members not needing these additional wealth management related services, you’re providing them with resources for peace of mind of having their estates in order for their family to easily administer.