What Are You Doing to Promote Financial Literacy?
Understanding a client's life stage provides the basis for better financial education and consulting.
Following the 2008 recession and its long-lasting impact on communities and individuals, organizations across the public and private sector have re-committed to financial literacy as a primary directive for the economic health of the country and its people. Political uncertainty simply underscores the importance of having the knowledge and skills necessary to make healthy financial decisions.
So why should financial institutions contribute to this national agenda to create a more financially informed and knowledgeable society? Why not just leave it to education institutions and community organizations? Is it about feel-good deeds and getting a thumbs up for CRA credit, or is it about developing a loyal client base and your ROI? Do community investment and business growth need to be mutually exclusive?
Current thinking on successful financial literacy strategies suggests a perhaps obvious point — basic financial capability requires access to both financial education and the necessary tools, products, and services to act on that knowledge.
Banks and credit unions are in a unique position to provide for all of these needs. There is no "one size fits all" approach here. Following a "life stage" model — understanding a client's life stage and their attendant financial concerns — provides the basis for better financial education and consulting. Bridging the theory of financial literacy efforts to the reality of specific life stage needs of clients just makes sense.
The BVS contribution to this education is the Life Stage Financial Consultant (LSFC), a comprehensive program of 63 initial courses. These courses teach staff members how to consultatively sell institution products and services to account holders and prospects based on their stage of life.
The key to growing and maintaining connected relationships is simple: Show that you care about your customers by providing them with the education they need to make informed decisions. They'll stick with you beyond fleeting transactions and view you as the trusted financial advisor they want and need.
"The only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their competence with those who can use it."
- Andrew Carnegie