How FIs Can Tackle The Financial Management Gap

Fiserv research shows proper financial management starts with banks and credit unions providing people with the advice and tools they need.

In its Expectations & Experiences: Household Finances quarterly consumer trends survey, released on Monday (April 25), the global provider of financial services technology solutions found that, though most respondents were satisfied with their FIs, they had mixed feelings about the financial management skills offered.

According to the survey, which polled more than 3,000 U.S. adults, 60 percent see financial management as a “must do” versus a “want to,” revealing signs that many consumers would benefit from outside help, Fiserv said in a press release.

While there is an opportunity for financial institutions to deliver the types of advice and tools that will enable their consumers to exhibit greater financial control, there still seems to be a disconnect in what’s being offered to consumers.

Though nearly 76 percent of the survey’s respondents rated their primary financial organization an eight or higher on a satisfaction scale of zero to 10, with 28 percent giving a “perfect 10,” the overall satisfaction ratings dropped among newer households. Lower satisfaction rates were reported by 65 percent of early millennials, who rated their primary financial organization an eight or higher on a scale of zero to 10.

The results of the study also showed that, despite the savviness of consumers today, many of which manage accounts at multiple financial institutions, households may actually need more support when it comes to managing their finances.

On average, respondents rated themselves a “B” for short-term responsibilities, such as paying bills and sticking to a budget, but that grade dropped to a “C+” for long-term goals, like saving for college or retirement. Nearly 48 percent admitted they felt they had no one to rely on for advice about managing household finances.

But banks and credit unions have a significant opportunity to fill this gap, as 53 percent of consumers said they viewed financial institutions as partners in managing their finances.

Mark Ernst, chief operating officer of Fiserv, said:

“Tasks, such as paying bills, budgeting or saving for retirement, are a fundamental part of people’s daily lives. Most consumers look to their bank or credit union as a partner, and financial institutions have a significant opportunity to provide the financial advice and tools they need to help them achieve their dreams.”