Despite having a wealth of customer data at their fingertips, many banks and credit unions are lagging behind fintechs in providing solutions to improve consumer financial health. Especially for small to mid-sized banks, a reliance on legacy technology “stacks” – and the vendors that provide them – is inhibiting innovation because of limited data analytics and integration capabilities. Here, we explore the current landscape and opportunities to help institutions overcome these barriers to power effective finhealth tools.
In this report, we draw on interviews with more than three dozen banking professionals and secondary research to identify key challenges with today’s banking technology.
Savings apps, earmarking tools, and other financial health solutions rely on data analytics to make complex financial management easier – yet many banking technology systems make it difficult and costly to offer such tools.
Limited integration and analytics capabilities, along with high costs, mean legacy tools often act as barriers to innovation for small-to-mid-sized institutions.
New opportunities are emerging to help institutions access the data they need to stay competitive, including middleware solutions, data aggregators, and lowered barriers to third-party integrations.
Focusing on financial health can help institutions differentiate themselves and drive customer loyalty. To do so, institutions need banking technology that allows them to offer quality products that address changing customer needs.
This paper benefits from the financial support of The Kresge Foundation. The opinions expressed in this report are those of the Financial Health Network and do not necessarily represent those of our sponsors.
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The Financial Health Network’s consulting practice draws on industry-leading expertise, customer insights, and measurement strategies to build consumer financial health into your business strategy.