The Financial Brand

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Banks have long believed that delivering core banking services inevitably leads to ownership of their customers' full financial needs. That's becoming a dangerous myth, according to a new report from 💯 Jim Marous on emerging consumer behaviors across multiple generations. Key findings: • Gen Z and Millennials use 6+ financial tools on average • 50%+ of these relationships are outside their primary bank • Digital convenience trumps geographic proximity But here's the kicker: While 85% of consumers report positive experiences with their primary bank, dig deeper and you'll find: • 33% feel misunderstood and underserved • 40% don't see their bank as innovative • 47% are unsatisfied with rewards offerings As one industry expert notes, "The fragmentation of banking relationships is changing the competitive dynamics of the industry. Consumers are building their own suite of financial products from multiple providers." The takeaway? Banks need to step up their game in personalization, innovation, and digital offerings. It's not just about satisfaction – it's about staying relevant in a rapidly evolving financial ecosystem.

Happening today at 2pm EST: Transforming Your Bank into a Financial Coaching Partner with Achieve Join us to explore how EVERFI’s mobile-friendly consumer education solution, Achieve, can transform your customer experience approach, turning personal banking into impactful financial coaching.

Behind the façade of Instagram-perfect lives, millions of Americans are silently struggling with their finances. A groundbreaking report from Nonfiction Research reveals the stark reality: 52% of Americans have cried over money troubles. Even among those earning $200k+, 41% have shed tears over finances. "For 150 million Americans, money is something to cry about," the report states. This isn't just a low-income issue – it's an American issue. But here's the kicker: 64% of those with financial advisors still feel they have no one to talk to about money. Banks are missing the mark, with 64% of respondents saying their bank has never offered basic financial planning services. One survey respondent put it bluntly: "I feel like I'm in a hole and all I have is a shovel." The solution? A "Personal CFO" for everyday Americans. Someone who can translate values into financial goals, create budgets, and demystify personal finance. Financial institutions, it's time to step up. The opportunity to make a real difference in people's lives is knocking.

Read Sean Gelles' piece on The Financial Brand, where he dives into the latest developments surrounding Zelle fraud and the broader person-to-person (P2P) transfers landscape!

The latest ATM security threats are a stark reminder that bankers can never let their guard down. From "hook and chain" attacks to the use of stolen "jaws of life" equipment, criminals are getting creative with physical attacks on ATMs. But it doesn't stop there. Card skimming devices have evolved to be as thin as 0.5 millimeters—thinner than a dime!—making them nearly impossible to detect. And just when you thought you had physical security covered, cybercriminals enter the chat. The AlphaV ransomware group recently exfiltrated terabytes of sensitive data from multiple institutions by compromising ATM systems. It's a chilling reminder that in our interconnected world, a single weak link can compromise an entire network. But it's not all doom and gloom. The banking industry is fighting back with multi-layered defenses. As Paul Cowley, VP of Technical Support and Logistics at DBE, describes it in his latest guest post for us: "No single line of defense prevents a breach on its own. Technology, alarm systems, proper lighting practices, branch design, and well-trained customers and staff can layer together to create the most robust defense." Read more on what Cowley has to say about protecting your ATM network:

The cashless society isn't here yet, but the landscape is shifting rapidly. Marqeta's 2024 State of Payments Report reveals a dichotomy in consumer behavior that's reshaping the financial industry. On one hand, cash still has its place: 60% of consumers used it in the last week. On the other, the digital revolution is in full swing. A staggering 96% of consumers have at least one card in their mobile wallet, and 62% feel confident leaving their physical wallets at home. But here's where it gets interesting: while 64% of consumers have used their primary bank for six years or more, loyalty is becoming increasingly fragile. The rise of digital-only banks and embedded finance is challenging traditional models. In the U.S., 63% of consumers aged 18-34 would consider getting financial services from non-traditional providers like tech companies or retailers. P2P payment apps are leading this charge, evolving from simple transfer tools to comprehensive financial platforms. Nearly 8 in 10 U.S. consumers have used a P2P app, with many using them for additional services like credit cards and bill pay. Perhaps most intriguing is the growing demand for Accelerated Wage Access. In a world where 3 in 5 Americans live paycheck-to-paycheck, 87% of U.S. consumers are attracted to platforms offering instant pay options. It's a trend that's reshaping not just payments, but employment dynamics too.

It doesn't matter whose top dog in the banking industry: customer loyalty is always the holy grail. But how we measure and improve it is always changing — and NPS isn't it. Enter the Global CX Standards, a groundbreaking initiative that's set to transform how we approach customer experience. Developed by the likes of Bain & Company, Kantar, and Qualtrics, these standards go beyond traditional metrics like NPS. They offer a comprehensive framework built on three pillars: customer-centric culture, CX capability, and CX execution. What makes this approach unique? It's not just about gathering data – it's about creating a customer-centric DNA within organizations. As Stanford Swinton and Peter Aitken, key figures behind the standards, point out: "Culture change needs to be led from the top." The financial industry stands to gain significantly from this new approach. In an era where fintech challengers are reshaping expectations, these standards provide a roadmap for both established institutions and newcomers alike. "Competition is already forcing financial service companies to innovate for customers," Swinton and Aitken note. "The Standards can help firms ensure that customer-centricity enters the DNA of the organization rather than stands alone as a project or one-off initiative." From AI-driven personalization to journey-centric team structures, the standards challenge us to think differently about CX. They're not just best practices – they're a call to innovation. As we approach the October 1, 2024 launch of the final standards, it's time to ask: How will your institution adapt to this new CX landscape? Are you ready to move beyond traditional metrics and embed customer-centricity into your organizational DNA? Let us know what you think!

Consumers have shifted to streaming platforms. And there are community banks and credit unions that have followed suit with their marketing. Here's why: • 59% of consumers say there's too much brand advertising on social media • Over half of the U.S. population will watch ad-supported streaming content monthly by 2026 • Streaming offers opportunities to reach diverse, engaged audiences Is your institution exploring streaming ads? What has been your experience?

Happening today at 2pm EST: Will Your Branch Adapt to the Needs of a Rapidly Changing Population? Join Benjamin La Macchia and guests Christine Moczynski, President and CEO of Prime Financial Credit Union and Melvin Wong, VP of Consumer Lending at Sun Community Federal Credit Union, as they discuss how some of the fastest growing US demographics still face barriers to accessible banking, including minorities, immigrants, and individuals with disabilities, and how banks and credit unions can help by breaking down these barriers.