27 Apr The Quandary of Financial Advisors and Bankers
Can Banks Make Bigger Profits by Coaching Customers to Use Their Line of Credit Wisely?
You asked the question, ‘Won’t a bank lose money if they taught consumers how to use a line of credit to get out of debt, save thousands of dollars and build wealth?
Let’s take a closer look. Let’s start by reviewing our current environment.
Why Does a Company Exist?
I’ll state the obvious. No company survives unless it makes money. To make the largest profits, companies work to minimize their expenses. We understand the importance of focusing on the bottom line. Focusing on the bottom line comes after delivering a special experience to the customer.
A company will thrive when it provides services that customers value. Who doesn’t like to feel special? When a company focuses on giving the customer a memorable experience they value, the money will follow. Let’s review a few challenges facing consumers and the financial services industry.
American’s Don’t Have Money
According to an article published by the Huffington Post, 75 percent of Americans don’t have enough saved to cover 6 months of living expenses.
Are we willing to pay finance professionals to educate us? For many people, the answer is no. In my first post in my Taking the Pain Out of Budgeting series, I highlighted the importance that our attitude has on our decisions. Unfortunately, many of us don’t understand that education pays off many times over.
Usually, banks and financial advisors focus on helping people who have already started saved money.
In my next post, I’ll touch on another challenge consumers and financial institutions face, then answer the question presented here.
I’d love to hear from you with your financial questions and concerns. Email me your questions or suggested topics to firstname.lastname@example.org. Learn more about CashMap at www.cashmapapp.com , and follow me on Twitter (@Cash_Map).