HomeFinancial Health Solutions: Targeting Small-Dollar Savings Suggestions to Low-Balance Customers
In partnership with BECU, the largest credit union in Washington state, this study examines the impact of a new mobile app savings feature, Quick Save, which allows members to spontaneously transfer small amounts to their savings accounts with the swipe of a button.
Subgroups of low- and moderate-income BECU members responded differently to opportunities to save small dollar amounts spontaneously. Customer segmentation can provide insights into the financial health impact of new products and features.
Quick Save drove a 17% increase in savings balances for BECU members who had $5.01 – $500 in savings when the feature launched. Support saving behavior by targeting suggestions to save small dollar amounts to those with low savings balances.
Approximately 1 in 8 eligible BECU members used Quick Save at least once; however, the majority of Quick Save users made contributions during fewer than four of the 22 weeks of the pilot. Use automated features to leverage the appealing nature of small, frequent savings contributions.
Data Spotlight
The Quick Save feature was more helpful to certain groups of customers based on their initial savings balances. BECU members with smaller savings balances ($5.01 – $500) who were invited to Quick Save increased their savings by $179 (17%) more than members who had similar savings balances but were not invited to Quick Save. This indicates that a tool such as Quick Save may be specifically useful for people who have opened savings accounts but are experiencing challenges in growing their balances.
Our Supporters
This report is made possible through the generous support of MetLife Foundation, a founding sponsor of our financial health work.
About The Financial Health Leaders Lab
The Financial Health Network helps companies incorporate behavioral science principles into their product design and rigorously test the financial health impact of their products. This research was conducted through the Financial Health Leaders Lab, a program available exclusively to Financial Health Network Members, which supports a select group of companies developing and testing innovations to improve financial health.
Written by
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Senior Director, Behavioral Economics -
Manager, ResearchFinancial Health Network
Financial Health Solutions: Targeting Small-Dollar Savings Suggestions to Low-Balance Customers
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