How Companies Can Capitalize on the Emotions of Money

How Companies Can Capitalize on the Emotions of Money

The process of paying bills and accessing short-term money has become nearly frictionless. More complex financial matters, such as managing pensions and investments, still leave many consumers feeling anxious and frustrated, according to a survey of 3,000 people in the U.S. and the UK, conducted by ReD Associates.

Join our Future of Money webinar on 30th of Nov to learn from some exciting ongoing projects where the human aspect blend with AI and automation to create new customer experiences. 

For financial institutions (FIs), the paradox is unsettling: The least digital progress has been made for the types of money that require the most assistance — and that represent the industry’s most lucrative untapped revenue opportunities.

In the report How Financial Institutions Can Capitalize on the Emotions of Money, we’ve devised a set of recommendations to begin the process of better understanding — and capitalizing on — the intersection of money and emotions. These recommendations are also applicable beyond FIs:

  • Know your customers and their relationships with money. One size no longer fits all in financial services. To personalize products and services, FIs need to consolidate data from multiple sources to fully understand customer needs, preferences and emotions.
  • Build analytical models based on moments that matter. Improved algorithms help identify and predict individual customers’ needs, and shape personalized promotional campaigns and innovative digital offerings.
  • Go to school on digital education. Cultivating customers’ financial fluency offers them the continual guidance they need and expect.
  • Make it radically simple and frictionless. By applying design thinking and analytics, FIs can enable online actions that boost engagement, encourage loyalty and attract the next generation of customers.
  • Create a digital-first culture. Integrated customer experiences require FIs to break down siloes and reshape their business and corporate culture around customers, not products and services.

We believe that companies can address consumers’ emotional connection with money by deploying digital in ways that meet the full range of their financial needs. What are you waiting for?