Why Bankers Should Focus on Financial Literacy
In a recent survey done by Wallet Hub, American’s top five financial fears are: an unplanned emergency, (26%) not enough retirement savings, (26%) job loss, (20%) fraud, (11%) and poor credit (7%). When faced with any of these scenarios, the most common place Americans turn to for help is their financial institution.
If you are a financial institution, how would you rate your staff’s financial literacy? Are they prepared to respond and answer the range of questions related to common financial fears? If the answer is no to either of these, it may be a good idea to develop a training curriculum related to product knowledge for both your staff and customers.
A growing number of financial institutions offer financial literacy classes to the public free of charge. This not only creates a better understanding of the financial industry, but also positions your brand to better assist new and existing customers with financial questions.
Tips for deploying a financial literacy program
- One of the first steps is to educate your staff on what products and services you offer, and then make sure they are comfortable uncovering potential financial needs for their customers.
- Encourage your staff to personally use the products with your institution. If they bank where they work, they are more likely to provide recommendations to their customers confidently.
- Managers can help drive financial literacy among their staff through skill practice activities and coaching touchbases with their teams. This helps ensure employees have the confidence and knowledge to ask high gain and clarifying questions to better serve your customers.
- Training your staff to know the four areas of financial need (Manage, Borrow, Protect and Grow) and how to use a customer’s banking relationship is essential to tailoring an appropriate solution for your customer.
Offering classes and information to the public is a great start to any financial literacy program. Educating your staff and reinforcing your products and services will only enhance your ability to assist new and existing customers.
Center for Practical Management helps companies achieve organizational goals and behavior change initiatives through tailored consulting services, leadership coaching, employee skills training and marketing services. Learn more at www.cf-pm.com
Center for Practical Management is a strategic business partner with Raddon, a Fiserv Company. Learn more at www.raddon.com