Financial Health Can Be So… Retro

Some of the most popular financial health tools introduced by fintechs actually replicate and automate habits and “life hacks” that many households used successfully before the era of electronic banking and payments. These digital “retronovations” bode well for banks and credit unions seeking to offer services that help their customers while also bringing subscription revenues that lessen institutions’ dependence on penalty fees.

Making just the minimum payment on credit cards deters some borrowers from paying down these debts over time and freeing up their credit lines for future purchases or emergencies.  So more consumers are using tools that help them commit to paying down their accounts faster using fixed installments. 

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In this blog series, Entrepreneur-in-Residence Corey Stone discusses how banks and credit unions can make “retronovations” a part of basic checking accounts—and charge for them, better aligning their business models with improving their customers’ financial health.