Banks have a vested interest in helping their customers achieve financial health, particularly in LMI communities hurt by branch closures.
The cost of living is rising, and so is the cost of financial illiteracy. In 2022, consumers lost an average of $1,819 per person due to lack of financial knowledge – that’s a 30% increase from the previous year.
People know they need financial education and they’re asking for help. As their financial institution, banks are positioned to provide guidance and solutions.
Financial wellness, defined as the ability to make confident, well-informed money-related decisions resulting in both short-term and long-term financial security, can drive long-term revenue for banks. It also supports greater financial resiliency and increased financial opportunities for consumers, whether it’s access to credit, investments or other financial offerings. These are key tenets of the Community Reinvestment Act and, given the upcoming changes to the rule, financial wellness and education programs are more important than ever.
Check out Kathleen’s full article published on bai.org
