How can banks offer their customers greater financial well-being?
Incentivizing the importance of financial well-being can motivate customers to improve their financial behavior.
Changing behavior is never easy. Often, people require compelling incentives to adjust their lifestyle choices for the better.
Today, technology has enabled people to make essential lifestyle changes faster and in a highly personalized manner. Digital tools that allow people to track their fitness levels, dietary habits, sleeping patterns, and more, have increased individual’s awareness of how good habits can positively influence their overall well-being.
Alongside improved lifestyle routines, financial well-being is a vital component of people’s happiness, productivity and social engagement levels.
However, most people lack the kind of financial literacy they need to make confident, well-informed money-related decisions. They may know that it’s sensible to save, but not how to make the most of their savings to maximize their financial security for both the short- and long-term.
South Africa-based insurance organization, Discovery Group, recognized this challenge. Much as insurance can save a lot of stress and money in the long run by providing a safety net, so too can better financial management. This is part of the reason why Discovery decided to place customer behavior at the center of its new bank’s operating model.