Digital Banking

NEW REPORT: Banking For The Socially-Conscious Consumer

Sustainability, as it turns out, is power. And thanks to new banking solutions, consumers are gaining new insights into their spending habits and how their daily decisions can make an impact on social and environmental issues near and dear to their hearts.

Several banks and financial companies are recognizing the importance of keeping consumers informed and are rolling out solutions to empower users to make well-informed choices. Whether it’s in-app tools that offer advice on monthly spending, new services to help parents teach their kids about money management or a publicity campaign aimed at raising public awareness of the threats posed by cyber fraud, the financial sector is making consumer education a priority.

June’s PYMNTS Digital Banking Tracker™ looks at the latest trends in the digital banking space, including efforts by banks and FinTechs to give consumers new insights into their finances and the latest developments on the path toward Open Banking.

Building smarter, more informed consumers

Banks and FinTechs rolled out several new services in recent weeks with the goal of enabling banking consumers to take smarter steps when managing their money.

In the U.K., Barclays recently launched a nationwide effort to educate consumers about the dangers posed by cyber fraud, a problem that costs U.K. consumers billions of pounds each year. In launching the campaign, Barclays cited research that found younger consumers are more likely to fall victim to online fraud than older consumers, challenging a long-held view of what group is more vulnerable to digital crime.

Other efforts to educate younger consumers could start at the household level. A new Visa debit card product from FinTech company Current is aimed at helping parents reduce their reliance on cash and offer kids a modern way to make payments by transitioning the concept of a weekly allowance into the digital space. Current also provides parents with a mobile app that lets them track their kids’ spending habits and encourage them to learn smart financial habits.

Financial companies also made it clear that they want millennial banking consumers to get educated about smart investments as well. Down under, for instance, Australian micro-investing firm Acorns Australia released a feature that enables users to track their spending habits and encourages them to invest their money in an investment portfolio. Meanwhile, back in the U.S., newcomer Empower launched a new app that helps consumers track their finances, alerts users if a bill is higher than usual and offers advice on how consumers can manage their money responsibly.

Empowering responsible spending

Money is power. And with power comes responsibility. Recognizing that some socially conscious consumers are interested in making a positive impact on their community, some financial companies are investing in tools that empower consumers to spend their money in accordance with their values.

As more millennials enter the workforce, their influence over the consumer market is poised to grow significantly. In an effort to encourage and empower younger consumers to make socially conscious purchasing decisions, digital-first financial firm Aspiration launched a new feature that helps users understand the power of their everyday purchases and perform sustainable banking. For this month’s Tracker feature story, PYMNTS spoke with Andrei Cherny, CEO of Aspiration, about the company’s new Aspiration Impact Measurement Score that assigns a numeric value to consumers’ spending patterns.

Check out the June Tracker for the feature story, plus the latest headlines and trends from across the digital banking landscape. Plus, the Tracker has a provider directory with over 180 major players in the digital banking space, including 10 new additions: Chillr, Data Action, eKassir, Empower, Handy Apps, Kasisto, Naqoda, NexorONE, Pepper and Wally.

. . . . . . . . . . . . . . . .


About The Tracker

The PYMNTS Digital Banking Tracker™ brings you the latest news, research and expert commentary from the FinTech and consumer banking space, along with the rankings of over 180 companies serving or powering the digital banking sector.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Click to comment