27 Apr The Quandary of Financial Advisors and Bankers Part 2
Can Banks Make Bigger Profits by Coaching Customers to Use Their Line of Credit Wisely?
I’ll answer this question in this post.
American’s are Financially Illiterate
On June 4, Today’s Money featured an article by Kelly Holland, ‘America’s grade for financial literacy: F’. I encourage you to read the article and take their quiz. The URL link is: http://www.today.com/money/americas-grade-financial-literacy-f-6C10193794. The article’s an eye opener. Congratulations if you scored well!
Another challenge facing consumers is we don’t trust the financial services industry.
Few of us trust professionals in the financial services industry. According to a survey conducted by StrategyOne and published by Financial Brand, consumers trust the financial services industry the least. You’ll find the article interesting. The URL address is: http://thefinancialbrand.com/22896/edelman-banking-financial-services-consumer-trust-study/
By creating a whole new experience for their customers, for a few companies with vision, these challenges present wonderful opportunities to stand out from the crowd.
Even if you’re already saving and you have the right attitude. Has anyone shown you how to keep your dollars working for you 24/7? Has anyone shown you how might double what you save without losing liquidity? Too often, a financial professional’s focus is on completing a transaction that will be counted as a sale.
Imagine a Bank Coaching You How to Use Your Line of Credit Wisely
Imagine a bank providing financial coaching enabling you save and achieve your dreams. To keep costs affordable, what if the bank provided free on-line educational services via webinars, YouTube videos, blogs and customer forums? Would you refer a friend? Would you use other services that they offer? Would you switch to their competitor?
When I’ve asked friends and associate this question, I get the same answer. For the bank that educates them and offers products that help them to achieve their dreams, they would enthusiastically enroll in other products and services. They will also refer their friends and family. They won’t move switch to their competitor.
If you enroll in more of the bank’s products, deposit more money and refer your friends, this means the bank will earn significantly more money! For the customers who don’t want to take small consistent steps to improve their situation, the bank will continue to charge and collect interest and penalties from their poor financial habits. The bank won’t be giving up a thing!
To answer your 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? My answer is an emphatic NO!
There’s just one question left to be answered, ‘What kind of customer will you be?’
I’d love to hear from you. E-mail me your questions or suggested topics to email@example.com. Learn more about CashMap at www.cashmapapp.com. Thanks for following me. My twitter address is Dennis Williams Jr @ Cash_Map.