In the midst of a cost-of-living crisis and with rising interest and mortgage rates, New Zealand customers were in need of better support and more innovative tools to help them to manage their finances. It was against this economic backdrop that the team at Booster, the leading provider of KiwiSaver superannuation and consumer-friendly invest products, launched day-to-day spending and saving account, Savvy.

About Savvy

With a focus on assisting customers in better managing their finances, Savvy is a smart account and debit card that helps customers spend and save more effectively with personalised insights and savings tools.

The team at Booster noticed a gap in the market, realising that while technology is opening up so many new possibilities, our ways of saving and spending have pretty much stayed the same. And so they developed Savvy, to offer customers a fresh and powerful approach to handling their money.

Savvy accounts help customers to spend and save smarter by providing personalised insights, automated saving options, savings tools and competitive returns. Each account is tailored to the customer’s needs, forecasting, tracking, and nudging them towards better habits every day.

To bring Savvy to life, Booster deployed the Moneythor solution to deliver the real-time orchestration of interactive experiences, along with personalised and actionable recommendations, insights and nudges for its customers. The successful integration has resulted in a comprehensive set of capabilities offered in Savvy right from its launch, showcasing a level of breadth and depth rarely seen in the initial versions of other digital banks.

The following features are incorporated into Savvy:

Organise your finances by creating distinct stacks to separate your rent fund from your spending money, allowing you to establish personalised goals for each.

2. Boost

With Boost, every purchase made using your Savvy debit card contributes to your savings. Savvy can round up your purchases to the nearest 50 cents, $1, or $5, and transfer the difference to your chosen Stack. Each day, Savvy displays your boosted savings, providing you with a satisfying sense of your growing savings.

3. Sweep

If you find yourself with some remaining change just before your next payday, resist the urge to splurge and consider boosting your finances with Sweep. Savvy automatically checks your balance every payday. If there’s money left over from your previous pay cycle, Savvy can sweep it into your chosen Stack.

a) Sweep any additional funds directly into your designated Stack, getting you closer to your savings goal.

b) Each Sweep brings you closer to achieving your financial goals. Delight in the progress as your savings gradually add up.

4. Salary Split

Organise your money before it arrives. Direct your pay to the appropriate Stacks the moment it lands.

a) Effortlessly allocate and transfer funds to your chosen Stack with every payday

5. Forecast

Stay ahead with Savvy. It learns to predict bills and informs you of your available funds, keeping you consistently informed.

6. Cashflow

Always know where you stand. Savvy provides a snapshot of your spending habits on a daily, weekly, and monthly basis.

Conclusion

Savvy is introducing an entirely new approach to delivering digital money management to New Zealanders through a personalised and real-time engagement solution. With a truly customer-centric approach to money management, Savvy aims to assist customers in achieving their financial goals and enhancing financial well-being.

The post Delivering a Powerful Solution to Help New Zealand Customers Manage Their Finances appeared first on Moneythor.

Read our guide on how Open Banking has developed globally

Read more on how Open Banking can help banks serve the SME market

The post What is Open Banking? appeared first on Moneythor.

Financial wellbeing isn’t just about crunching numbers. It’s about feeling secure and in control of everyday finances.

Customers that are financially secure will have enough cash to settle bills on time and a game plan for unexpected expenses. It’s not just about helping customers to survive financially; it’s about providing them with the tools and knowledge to shape their future in line with their goals.

Read our guide on understanding and establishing financial wellbeing programmes

Read our guide on why financial wellbeing is important during a cost-of-living crisis and how banks can support customers during a crisis.

The post What is Financial Wellbeing? appeared first on Moneythor.

In the past, banks may have recognised the value of data, but struggled to implement programs that really made use of this.

A notable shift has occurred since then. This shift reflects an understanding of how more digitally engaged customers translate to increased profitability, and how data is key in building lasting customer engagement.

Moneythor CEO and Co-founder Olivier Berthier and FinTech Futures editor Paul Hindle discussed the importance of personalised banking services, the key challenges banks are facing when it comes to customer acquisition and what it is they can be doing differently on the What the FinTech? Podcast.

The post A Personalised Approach to Driving Customer Acquisition and Activation in Digital Banking appeared first on Moneythor.

At the same time, the focus on customer activation has grown, with 2024 seen as a year where this term becomes crucial for the success of digital banking ventures. Additionally, the integration of gamification techniques into banking experiences has evolved from a regional trend to a global necessity.

In this article, we explore these trends and their pivotal role in shaping the digital banking landscape in the coming year.

Customer Activation

For 2024, we predict that “activation” will take centre stage as one of the keywords of the year in digital banking. This year has already witnessed an increasing emphasis on activating banking customers, with both traditional banks and emerging digital players grappling with the challenge of ensuring that acquired customers translate into profitability.

Earlier this year, we conducted in-depth research on activation and explored the associated challenges and opportunities. 

Access the detailed report here

This exploration gave rise to the concept of Customer Activation Management (CAM), the strategic and process-driven approach to ensuring banking customer become activated and engaged users of truly personalised banking experiences.

To learn more about CAM, check out our guide here.

Gamification

At Moneythor, we have been developing capabilities and enabled experiences that blend loyalty and gamification techniques into digital banking journeys for several years. We’ve witnessed measurable results, such as increased engagement and activation, that these programs have delivered for many of our clients in Asia.
 
In 2023, we observed a growing demand across continents, with an expanding interest in these techniques in the Middle East and Africa, Europe, and the Americas. We anticipate that financial institutions worldwide will increasingly tap into gamified loyalty techniques in 2024, not just in their traditional card/spend programs, but also to power more rewarding savings/deposit journeys, as well as to enhance their Personal Financial Management (PFM) and financial wellness programs.

Read more about gamification in digital banking

Fraud and Scam Prevention

Although a persistent concern for several years, online fraud and scams have reached unprecedented levels worldwide. Notably, the responsibility for preventing them has expanded beyond CISO teams, now involving marketing, product, and customer experience teams at financial institutions of all sizes, often under the active guidance of regulators.

It is evident that effective fraud and scam prevention significantly relies on educating customers to detect, avoid, and report attempted or successful occurrences. In response, leading financial institutions have sought to implement personalised, actionable, and, in a growing number of cases, gamified educational experiences focused on prevention.

Read our detailed guide on this

Conclusion

Looking ahead to 2024, the digital banking sector is expected to grow and innovate, with fraud and scam prevention, gamification and customer activation management all contributing to this evolution. Staying on top of these changes will be crucial for financial institutions looking to position themselves favourably in the dynamic landscape of digital banking.

The post Top Banking Trends 2024 appeared first on Moneythor.

The current state of play

In today’s competitive banking landscape, there is an imperative for incumbent and new digital banks to grow their profitable customer base. Current methods are failing. When surveyed, only 23% of financial institutions said that their acquisition strategies were successful. Banks today struggle to effectively acquire customers and when they do, they struggle to engage them post-acquisition. 15% of newly acquired customers drop-off within the first 3 months and it takes on average 12 months for a customer to become profitable.

The current technologies and approaches available are not effective at data tracking and management, nor are they suitable for the long-term engagement of customers. What is the point of acquiring a customer who doesn’t use your product or service? Or one who ends up costing you money to acquire?

With so much data and innovative tools on the market, it is surprising that these significant challenges have not been met with a solution.

Banks need a systematic solution that can allow them to not only engage customers as they acquire them, but to activate them and ensure product adoption and usage from the start of the relationship.

That’s why Customer Activation Management needs to be an important part of banks’ growth strategy, helping them overcome the above-mentioned challenges and position them on a path towards sustainable business growth.

“Customer Activation Management focuses on the systematic and purposeful process of acquiring, engaging, educating, and motivating customers to actively and effectively use the financial institutions’ products or services. It aims to acquire and convert passive customers into actively involved and loyal ones, thereby maximising the value of each customer relationship.”

No doubt most people have come across the term “activation” in some form throughout their career. It can loosely be applied to activities that encourage product adoption and the most common definition found for activation is “the first time customers get value from your product”.

In the grand scheme of how valuable active customers are to financial institutions, this definition does not cover the real impact that effective activation can have. What’s more, the idea of the “first time” implies that activation is a one-time thing, where in reality, continuous product adoption and usage are key growth factors for financial institutions.

It begs the question: why has there not been an effective approach created to ensure that activation techniques become an integrated and crucial piece of a bank’s path towards growing their profitable customer base?

It was with this thought in mind that the concept of Customer Activation Management was born.

What are the benefits of Customer Activation Management?

Data-driven insights

Customer Activation Management enhances data-driven insights by providing a continuous stream of user interactions and behaviours, enriching the data pool for more accurate and actionable analytics.

Improved cost efficiency

Customer Activation Management optimises cost efficiency by reducing the need for costly and ineffective traditional customer acquisition, as active customers are more likely to stay, use more services, and require fewer resources for retention in the future.

Increased product adoption

Customer Activation Management drives product adoption by creating engaging experiences and personalised incentives that motivate customers to explore and use a wider range of services.

Creates profitable customers

Customer Activation Management ensures that customers fully adopt and utilise their banking products, increasing revenue opportunities and their lifetime value. By implementing CAM, banks can reduce churn, enhance loyalty, and ultimately drive sustainable profitability.

How can Customer Activation Management (CAM) help to drive profitability?

Customer Activation Management is a strategic approach that improves customer activation and can impact a bank’s bottom line by increasing product usage, reducing churn, and optimising costs. It fosters long-term profitability by nurturing and maximising the value of customer relationships from the beginning. Customer Activation Management (CAM) can significantly drive profitability for banks by:

• Increasing Product Adoption

CAM ensures that customers actively engage with and adopt a wider range of banking products and services. This leads to increased fee income, interest revenue, and cross-selling opportunities.

• Reducing Customer Churn

By proactively activating customers and providing personalised insights, CAM helps reduce customer attrition. Retaining existing customers is more cost-effective than acquiring new ones.

• Enhancing Cross-selling

CAM enables financial institutions to identify opportunities to cross-sell relevant products to active customers, thereby increasing revenue from existing customers.

• Improving Customer Loyalty

Activating customers from the start and offering personalised experiences lays the groundwork for long-term loyalty. Loyal customers are more likely to stay with the bank and use its services over the long term.

• Creating Competitive Advantage

Banks that implement CAM effectively can differentiate themselves in a crowded market, activating and retaining more customers and standing out from the competition.

Moneythor’s Customer Activation Management Platform

Moneythor has launched its Customer Activation Management platform, a set of features designed to seamlessly integrate with a bank’s core systems. Our platform enables banks to effectively acquire and activate customers simultaneously, leading to increased product adoption and usage.

The CAM platform offers a range of features including referral management, vouchers, points and giftcards, cashback, challenges, and games.

We have seen first-hand having worked with clients on their activation strategies incredible results such as:

• 85%

The rate of card activation amongst customers

• 15

The average number of transactions made by customers per month.

• 1.7 million

The number of digital coupons redeemed.

Find out more about our Customer Activation Management Platform here.

The post Unlocking Profitability with Customer Activation Management appeared first on Moneythor.

The value of incentivised referrals

With many financial institutions vying for market share, the pressure to distinguish oneself from competition is high. Simply offering basic banking services is no longer enough. Both traditional and digital banks must constantly adapt and innovate in order to attract new customers. Innovative strategies are the key to standing out in this crowded market.

Acquiring new customers is not just a strategic choice for banks; it’s essential for revenue growth. As banks expand their customer base, they tap into a wider pool of depositors, borrowers, and investors, ultimately leading to increased income streams. Statistics consistently underline the direct correlation between customer acquisition and financial success. Research reveals that banks with successful customer acquisition strategies experience higher profit margins and greater long-term financial stability. In an era where the financial industry is continually evolving, the ability to attract and retain new customers is a linchpin for sustained revenue growth, making it imperative for banks to prioritise effective acquisition strategies in their operational models.

Banks are exploring new avenues, such as incentivised referrals and Member-Get-Member (MGM) programs, to gain a competitive edge and increase the success of their acquisition strategies. Incentivised referrals involve rewarding existing customers (Existing To Bank or ETB) for referring new ones (New To Bank or NTB). This guide explores why such referrals can be a crucial tool for customer acquisition in banks when implemented correctly, and provides actionable insights on how to implement a successful referral program.

Incentivised referrals are when existing customers are motivated to recommend a bank’s products or services to their friends, family, or acquaintances. This process capitalises on the trust and credibility established within personal networks, as referrals from known sources are often more compelling to potential customers.

The role of incentivised referrals is to leverage this trust to amplify a bank’s reach, attract new customers, and foster growth. In the banking industry, referral incentives can take various forms, such as cash rewards, interest rate bonuses, waived fees, vouchers, lucky draw chances or exclusive account benefits for both the referrer and referee. These incentives serve as tangible rewards for loyal customers, encouraging them to actively participate in expanding the bank’s customer base, while simultaneously providing attractive perks to new customers, thereby creating a win-win scenario for all parties involved.

Incentivised referrals are highly effective due to the intrinsic trust and credibility associated with referrals from friends and family. When individuals receive recommendations from their trusted social circles, it triggers a sense of reliability and assurance, making them more inclined to explore the recommended bank’s offerings.

The psychological principle of social proof, wherein people tend to follow the actions of those they trust, comes into play here. Additionally, the introduction of incentives adds an extra layer of motivation, making the referrer more likely to advocate for the bank, while the referee, enticed by the promised rewards, is more likely to take action. This synergy of trust, social influence, and rewards makes incentivised referrals a powerful strategy in many industries including banking, fostering not only customer acquisition but also brand loyalty and long-term relationship banking, fostering not only customer acquisition but also brand loyalty and long-term relationships.

What are the benefits of incentivised referrals?

Cost-efficiency

In the realm of customer acquisition, incentivised referrals are inherently cost-effective compared to traditional marketing channels. Unlike expensive advertising campaigns or extensive outreach efforts, referral programs leverage the existing customer base, effectively transforming loyal clients into brand advocates. This not only reduces the need for substantial advertising budgets but also results in a more efficient allocation of resources. With incentivised referrals, banks can channel their investments more directly towards rewarding their existing customers for successful referrals, rather than pouring vast sums into broad marketing initiatives.

Improved customer loyalty

Implementing incentivised referral programs in banks not only helps attract new customers but also enhances the loyalty of the existing customer base. When customers actively participate in referring friends and family, they become more invested in the bank’s success and reputation. This increased sense of involvement tends to translate into greater loyalty, as these referrers are more likely to stay engaged and satisfied with the bank’s services. Moreover, their personal stake in the bank’s growth encourages them to explore other products and services, thus opening doors for cross-selling and upselling opportunities. The bank can capitalize on this trust and loyalty to introduce additional offerings, which are more likely to be well-received, further boosting revenue and solidifying long-term customer relationships.

How to implement a successful incentivised referral program?

Referral programs are not new. Most banks have trialled some version of a referral or Member-Get-Member program with varying degrees of success. So why should banks focus on referrals now? And what should be done differently to ensure they are successful?

Leverage the referrer / referee relationship

Leveraging the referrer/referee relationship is crucial to implement a successful referral program because it taps into the inherent trust and credibility within personal networks. Close friends and family recommendations carry significant weight, making the referral process more authentic and compelling. The Moneythor solution is capable of managing this relationship across both accounts providing rewards to both parties as they complete various tasks and actions.

Be smart with incentives

Being smart with incentives is vital to motivate both referrers and referees. By offering rewards that are attractive and valuable to participants, the program becomes more enticing and increases the likelihood of active engagement and successful referrals. Additionally applying incentives in interesting ways and splitting them across activities can enable banks to spread out the incentives over time.

Do not stop at onboarding

A recurring issue of legacy referral programs is that they used to deliver the referral reward at the time of a successful onboarding and stop there, leading to numerous new customers only completing the process to earn the reward, but disappearing after this initial step. Creating long-running activities post-onboarding for new customers to complete for both they and their referrers to receive the full incentives is a crucial method of modern referral programs. It can further be reinforced by nudging the referrers to nudge their referees into completing those additional steps to maximise their mutual benefits.

Use challenges and gamification techniques

Using challenges and gamification techniques adds an element of fun, driving increased participation and enthusiasm. Creating challenges or incorporating gamified elements into the referral process makes it more enjoyable for participants, encouraging sustained engagement and fostering a sense of competition and achievement throughout the program.

The post A Guide to Successful Referral Programs in Banking appeared first on Moneythor.

Introduction

In an era where digital transactions and online banking have become the norm, financial institutions find themselves at a critical juncture — they must strike a delicate balance between robust security measures and a seamless user experience.

Preventing scams and fraud is paramount to protect both the institution and its customers, but introducing too many security barriers can frustrate users and hinder the efficiency of everyday financial interactions.

Finding the right balance between safeguarding against malicious actors and ensuring a smooth, frictionless experience for genuine customers is a complex challenge that demands innovative strategies and technologies.

This delicate balancing act is not only essential for building trust and preserving the integrity of financial institutions but also for delivering the convenience and accessibility that modern consumers increasingly demand.

It’s well documented that personalisation plays a pivotal role in creating seamless customer journeys. But what role does it have in ensuring digital security for banking customers? How can the basics of personalisation be used to create experiences that encourage fraud detection and prevention, while simultaneously creating engaging and delightful experiences?

The state of fraud in the banking industry has become increasingly concerning in recent years, with a significant surge in fraudulent activities. According to SEON’s Global Banking Fraud Index 2023, the global neobank market witnessed remarkable growth, with its value rising by nearly $20 billion in 2022. This substantial expansion of the neobank sector has also attracted the attention of fraudsters looking to exploit vulnerabilities in these emerging financial institutions.

In parallel with the growth of neobanks, SEON’s report highlights a worrying trend in card fraud across the financial sector. In 2022, approximately 36% of all financial institutions reported incidents of card fraud, marking a troubling 26% increase compared to the previous year. This sharp rise in card fraud underscores the ever-evolving tactics and sophistication of fraudsters, who continue to find innovative ways to compromise the security of banking systems and exploit unsuspecting customers.

As the financial industry continues to embrace digital innovation and online services, combating fraud remains a paramount challenge that banks and financial institutions must address to protect their customers and maintain trust in the industry.

How are regulators responding to the increase in fraud?

Regulators around the world have been responding proactively to the alarming increase in fraud attacks targeting the banking industry. Their efforts are aimed at safeguarding both financial institutions and consumers from the growing threat of cybercrime. Here are some key ways in which regulators are addressing phishing attacks in banking:

• Strengthening cybersecurity regulation

Regulatory bodies have been enhancing cybersecurity regulations for financial institutions, mandating stronger security measures to protect against fraud. These regulations often include guidelines for multi-factor authentication, data encryption, and regular security audits.

• Incident reporting requirements

Many regulators now require banks to promptly report any data breaches and security incidents, including phishing attacks. This enables regulators to monitor trends, assess the impact of attacks, and provide guidance on incident response.

• Customer education mandates

Some regulatory bodies require banks to educate their customers about phishing risks and how to recognise phishing attempts. These educational efforts aim to empower customers to protect themselves and report suspicious activity.

• Penalties and fines

Regulators have the authority to impose significant fines and penalties on financial institutions that fail to implement adequate cybersecurity measures or do not report security breaches in a timely manner. These penalties serve as strong incentives for banks to invest in fraud prevention tactics.

Why is preventing fraud so important for banks?

Banks need to ensure customer’s digital security for several compelling reasons:

• Trust and reputation

Trust is the foundation of the banking industry. Customers entrust their money and sensitive financial information to banks. If a bank fails to adequately protect this data and its customers experience fraud or security breaches, it can erode trust and damage the bank’s reputation, potentially leading to customer attrition.

• Legal and regulatory requirements

Banks are subject to a myriad of laws and regulations that mandate the protection of customer information and assets. Non-compliance can result in significant financial penalties and legal consequences for the institution.

• Financial Liability

In cases where customers suffer losses due to security breaches or fraud, banks may be held financially liable if they are found negligent in their security measures. This can lead to costly litigation and compensation payouts.

• Customer retention

Ensuring security is not only about protecting against threats but also about retaining customers. If customers perceive that their financial institution does not prioritise security, they may seek alternative banking options that they perceive as safer.

• Competitive advantage

Banks that invest in robust security measures can use this as a competitive advantage. Customers are increasingly considering security as a key factor when choosing a bank, so institutions that prioritise security can attract and retain more customers.

Select the right channels

Personalisation enables institutions to communicate with customers through secure channels and methods they prefer, reinforcing trust and making it easier to verify the legitimacy of communications.

Detect risky transactions

Personalised risk assessment models can detect anomalies in spending patterns or transactions’ locations and trigger real-time alerts or additional authentication steps when necessary, effectively thwarting fraudulent activities.

Personalised fraud alerts

Monitoring systems can generate personalised alerts and actionable notifications that are highly relevant to individual users. This includes transaction alerts for large or unusual purchases, duplicate transaction notifications, and timely account activity summaries. When users receive these insights, they are more likely to notice and report any unauthorised activity promptly, helping to mitigate fraud.

Educational tools and tips

Banks can aim to make fraud prevention education an ongoing effort and adapt their strategies to address evolving threats and technologies. Using in-app contextual educational messages can empower customers with knowledge and tools to help reduce the risk of fraud and create a more secure banking environment for everyone.

Engaging challenges and games

Incorporating in-app challenges and games is an innovative and engaging way for banks to prevent fraud. By turning fraud prevention into an interactive experience, banks can educate their customers about security risks and best practices in a fun and memorable manner. For instance, customers can participate in quizzes or games that teach them to recognise phishing attempts or identify suspicious transaction patterns.

Conclusion

Through the tailoring of digital services, communication channels, and security measures to individual customer needs and behaviours, banks can forge seamless and secure experiences that strengthen trust and mitigate fraud risks.

Personalisation enables institutions to foster deeper connections with their customers, empowering them with the tools, knowledge, and support necessary to protect their financial well-being.

The integration of personalisation not only enhances the user experience but also fortifies defences against scams and fraud by aligning security measures with individual preferences. In an era where digital threats continue to evolve, personalisation emerges as a critical strategy for the financial industry, offering a path forward towards a safer, more resilient, and customer-centric future of banking.

As banks continue to harness the potential of personalisation, they can lead the charge in redefining the banking landscape, ensuring that every interaction is not only seamless but also safeguarded, for the benefit of both institutions and their valued customers.

The post Balancing Security and Seamless Experiences appeared first on Moneythor.

The role of mutual banks (mutuals), co-operatives (co-ops) and other customer owned banks in Australia cannot be underestimated. They are integral to communities nationwide boasting a legacy of many years of service.

With this legacy comes a level of experience and understanding of the unique needs of customers to achieve their financial goals. What sets the customer owned banking sector apart is its members’ commitment to community development, evident in their sponsorships, community banking initiatives, and extensive philanthropic endeavours. Operating with a people-first approach, mutuals and other customer owned banks focus on delivering financial products & services that consistently yield high levels of customer satisfaction.

Despite being relatively small players within the vast financial ecosystem, mutuals or customer-owned banks exert a disproportionate influence on numerous areas and communities throughout Australia.

To continue making this substantial impact for their members, these institutions must embrace progress on various fronts, as customer needs and overall well-being are undergoing transformative changes.

What we will cover in this guide

Increasing financial pressures

The increase in interest rates has stirred widespread concern in a country where property prices continue to outpace average incomes, leading numerous borrowers to shoulder substantial loans

As the Reserve Bank of Australia initiated rate hikes starting from May 2022, aiming to address inflation, many households found themselves under immediate financial strain. Inflation has proven to be both more elevated and persistent than initially anticipated. People’s contentment with the overall economy and their personal financial situations decreased throughout 2022, despite remaining within the typical range. There is a noticeable lack of satisfaction amongst consumers with the ongoing cost-of-living challenges undoubtedly contributing to this sentiment.

Natural disasters causing additional financial stress

The frequency of natural disasters and extreme weather occurrences in recent years has predictably influenced the financial wellbeing of many Australians.

These events collectively subtracted $5 billion from the Australian economy in 2022, primarily due to significant disruptions in key sectors such as mining, agriculture, tourism, and construction.

In addition to the financial instability caused by these incidents,
households in affected regions will face the added burden of higher insurance premiums, a direct consequence of the rising occurrences of extreme weather and natural disasters.

The state of customer wellbeing in Australia in 2023 has experienced significant challenges across multiple fronts. This dual burden of changing macro-economic conditions and environmental disruptions has created a notable decline in financial wellness, underscoring the need for comprehensive measures to address these issues and restore wellbeing across the country.

Why Should Mutuals Focus on Improving the Financial Wellbeing of their Members?

Improved financial wellbeing brings a range of benefits, positively impacting various aspects of an individual’s life and of society. Financial wellbeing closely aligns with mutuals priority of people-first banking. Key advantages include:

1. Reduced Stress

   A solid financial foundation leads to reduced financial stress, allowing individuals to focus on other aspects of their lives without the constant worry of making ends meet.

2. Enhanced Mental and Emotional Wellbeing

   Better financial health often translates to improved mental and emotional health, contributing to overall happiness and life satisfaction.

3. Increased Financial Security

   Improved financial wellbeing means individuals are better prepared to handle unexpected expenses, emergencies, and are less vulnerable to financial shocks.

4. Retirement Readiness

   Improved financial wellbeing ensures individuals are better prepared for retirement, with sufficient savings and investments to maintain their desired lifestyle.

5. Increased Flexibility

   Financial wellbeing grants individuals the freedom to make choices based on their preferences and values, rather than being solely driven by financial constraints.

6. Generational Impact

   Improved financial wellbeing can have a positive impact on future generations, creating a legacy of financial responsibility and education.

7. Community and Societal Benefits

   A population with improved financial wellbeing can have broader benefits for society, including reduced reliance on social support programs and increased economic stability.

How can Mutuals Help Customers to Improve their Financial Wellbeing?

Mutuals or customer-owned banks have the capability to bolster their customers’ financial wellbeing by providing valuable guidance and resources. These offerings serve a dual purpose: assisting individuals and families in navigating difficult situations while also improving their long-term financial stability.

Here are some of the tools and supports that mutuals can offer their customers:

Personalised Insights & Financial Management

Financial Literacy Tools & Tips

Savings Goals

Budgeting Tools

Predictive Money Management

Phishing and Scam Alerts

Personalised Insights & Financial Management

Through the provision of tailored insights and recommendations, mutuals can offer their members a more transparent view of their existing financial position and circumstances. Utilising user-friendly transaction displays, real-time alerts, and concise expense summaries, member-owned financial institutions can simplify the potentially overwhelming process of comprehending spending habits and financial patterns.

Moreover, by harnessing the Consumer Data Right (CDR) and its Open Banking component, mutuals can equip their members with a comprehensive perspective of their financial situation, encompassing information from multiple financial institutions. This holistic understanding of their finances serves as the crucial initial step in formulating a strategic plan to navigate the challenges they face, helping individuals and families chart a path towards financial stability amidst uncertain times.

Financial Literacy Tools & Tips

Empowering consumers with essential financial tools and knowledge, on a range of topics such as budgeting, saving, investing, debt management, and financial products and services, equips them to make informed choices and steer clear of financial challenges. Mutuals can offer this valuable information through regular and contextual bite-sized pieces of content and recommendations within their banking apps as well as other channels including email, SMS and push notification. This personalised tips gradually enhance members’ financial literacy over time.

Furthermore, mutuals have the opportunity to incorporate gamification strategies to create more engaging financial education experiences to specific segments of their base. This approach not only provides members with the knowledge needed to navigate challenges but also lays the foundation for their future financial achievements.

Savings Goals

Savings goals significantly enhance financial wellbeing by providing direction and purpose to an individual’s finances. They foster focus and also encourage responsible money management.

Savings goals often start with building emergency funds, preparing for unexpected expenses, and paying down debt, leading to financial stability and reduced stress. Long-term planning, facilitated by savings goals, ensures individuals are better equipped to handle life’s uncertainties, such as retirement or medical expenses.

Achieving these milestones boosts financial confidence, reducing financial worries and enhancing overall peace of mind. Ultimately, savings goals act as a roadmap to financial success, promoting wise financial decisions, resilience, and a sense of control over one’s financial future, thereby significantly improving financial wellbeing. Mutuals can provide savings goals, pots or virtual pockets within their digital channels with limited impacts on their core systems.

Additionally, to maintain members’ dedication towards savings, mutuals can reward good saving behaviours with personalised rewards and incentives.

Budgeting Tools

Mutuals can assist their members in crafting practical and achievable spending budgets, based on personalised insights and past spending patterns. By providing Personal Financial Management (PFM) tools that include intelligent budgeting features, members can conveniently monitor their income and expenses in a single user interface, ensuring that their spending aligns with their financial objectives and preferences.

Employing real-time data and insights, mutuals can play a crucial role in keeping their members on course with their budgetary plans and targets, thereby ensuring sustainable long-term financial security.

Predictive Money Management

Advanced predictive financial management tools, such as financial forecasts and alerts, empower individuals to project their income and expenses for a defined period. This capability helps with efficient resource allocation, allowing them to prioritise essential expenditures and find opportunities for adjustments or reductions to address the rising cost-of-living.

Financial forecasts offer a proactive view, enabling individuals to anticipate potential financial hurdles and take pre-emptive steps to avoid difficulties. Leveraging historical transaction data, Mutuals can readily offer these predictive insights to customers, serving as a preventative measure to safeguard their financial stability.

Phishing and Scam Alerts

Provide prompt and tailored notifications and nudges to your customers whenever there is a rise in phishing attacks or scams affecting either your bank’s clients or participants in the broader market.

Educate customers on how to spot and avoid scams by delivering proactive and personalised educational nudges with guidance and best practices.

Alerts can be delivered via in-app pop-ups, push notifications, messages in the app inbox, or through email.

Conclusion

Mutuals, co-ops and customer owned banks in Australia play a vital role in improving the financial wellbeing of their members and communities. Their people-first approach and commitment to community development position them as valuable partners in helping individuals navigate challenging financial circumstances while working towards long-term financial stability.

By enhancing their digital services with tools like personalised insights, financial literacy resources, savings goals, budgeting, and predictive money management features, mutuals can empower their members to make informed decisions, reduce financial stress, and achieve their financial goals.

hese initiatives not only benefit individuals but also contribute to broader societal wellbeing by promoting economic stability and helping people to cope with external challenges such as rising inflation and natural disasters. As mutuals continue to evolve and adapt to changing consumer needs, they can make a meaningful difference in improving the financial wellbeing of their members and the communities they serve.

The post Enhancing Financial Wellbeing: The Role of Australian Mutuals appeared first on Moneythor.

At this critical juncture, boosting deposits has become a top priority for banks. It’s not just a smart move for now; it creates a strong foundation of stability and competitiveness for the future too.

In order to thrive in this new environment, successful banks will need to develop strategies aimed at attracting a broad spectrum of deposits with a particular focus on retail bank accounts and those associated with small business. This diversification of deposits can help financial institutions to navigate through challenging times, reducing the risk of relying too heavily on one source of funding.

In this article, we’ll explore why growing deposits is important in today’s environment and offer some practical strategies that banks can implement to achieve this goal.

Why are deposits so important for financial institutions?

1. Keeping the financial institution running

Deposits are a bank’s financial lifeline. They are crucial for ensuring that the financial institution has got enough cash on hand to cover customer withdrawals and other financial commitments.

2. Protecting the financial institution from economic uncertainty

More deposits mean a sturdier financial safety net for banks with a hefty deposit stash, banks are better prepared to handle tough economic times and deal with unexpected financial surprises.

3. Strengthening lending potential

The lending capacity of a financial institution is dependent on the amount of customer deposits the bank has. Deposits are the fuel that keeps the bank’s lending engine running smoothly. By increasing deposits, financial institutions have more liquidity to lend to retail customers and small businesses. In order to lend out more, financial institutions must secure more deposits.

How can banks increase deposits?

1. Make saving money easy

If banks want to see their deposits grow, nurturing a culture of savings through digital tools and financial literacy tips is key. Arming customers with tools like savings goals or pots, makes saving easier to do and simpler to track. Additionally, financial institutions can make saving more enjoyable by creating challenges and games and keep customers on track by offering personalised incentives when goals are hit.

2. Attract new customers

Another important option for increasing deposits is by acquiring new customers. Using personalised and contextual referral programs, banks can quickly increase the number of customers they have and hence, the number of deposits they draw in.

3. Increase customer loyalty

Boosting bank deposits can be impacted by the level of loyalty customers have to the financial institution. When customers are loyal to their bank, they’re more inclined to centralise their financial activities, including saving more money within that institution. Add to that, they are less likely to churn and move over to a competitor.

In today’s financial landscape, loyalty programs and rewards campaigns have evolved beyond mere promotional tools to attract newcomers. They’ve taken on a central role in financial institutions’ relationships with their customers. Delivering robust loyalty campaigns has become a must for financial institutions to retain and keep their valuable customers engaged in an ever increasingly competitive market.

How can Moneythor help?

Banks can elevate their digital offerings by providing their customers with the tools they need to achieve their savings goals and enhance their budgeting skills. Moneythor’s platform and orchestration engine makes it possible to offer personalised insights, actionable recommendations, and helpful nudges that empower customers to make sound financial decisions, boost customer engagement, reduce churn, and foster customer advocacy.

With Moneythor you can personalise campaigns and seamlessly deploy gamification features and interactive content within your digital banking channels.

The post How to Enhance Digital Banking Experiences to Boost Deposits appeared first on Moneythor.