Banks play a pivotal role in many major milestones in a customer’s journey—first jobs, saving for big goals, taking charge of their future—but how do you move from being a transactional partner to building a true relationship, grounded in loyalty? That’s the goal for many financial institutions. Here at Bumped, we’ve been designing a new loyalty platform that helps build deeper connections, drive the customer behaviors that matter most, and introduce a bank’s customers to the right products at key moments, in the most compelling way.
At Money20/20 this month, we’ll be discussing bank loyalty with some of the most innovative minds in the industry. As we prepare for Vegas, we’ll be sharing one phase of the customer journey each week, with a deep dive into how stock rewards can help give customers a head start with investing—every step of the way.
“Change is the only constant in life”– a common idiom expressed throughout all stages of one’s personal development, across diverse backgrounds and experiences. Major milestones along the way, such as education, family and career growth, oftentimes are followed by the unknown. Folks can become more prepared to handle anything that crosses their way by partnering with organizations that are equipped to illuminate the way today and down the road.
Banks are in unique positions to offer anchoring support for customers long-term, beginning early. As we explored in, Bank Loyalty: First Financial Foray, young adults typically initiate relationships with a bank by opening their first checking accounts. Chances are, if they grow to love their bank, the two develop a lifelong partnership from then on.
Students rely on their banks to help manage their finances, especially in the midst of tuition, loans and new expenses. At the same time, growing adults are developing their passions and allegiances. Exhibited in What Students are Learning About Investing, “84 percent of Gen Z plan to invest in organizations they believe in. Nearly one in three Gen Z investors (31 percent) said they would be willing to allocate 50 percent or more of their investment portfolio to socially responsible or impact investments.” All this considered, with rising student debt and minimal public education about finances, banks are poised to support new investors in achieving these goals.
As illustrated in Moving into Adulthood, Empowered and Growing Together, millennials and Gen Xers generally feel financially unprepared for the future. According to data from the U.S. Census Bureau, only 32 percent of Americans are saving for retirement with a 401(k). This leaves millions vulnerable to not having enough saved for retirement. Regardless of their individual financial decisions, the sooner that folks otherwise begin investing in the stock market, the more likely they will be able to secure a safe, healthy, and comfortable future ahead.
By introducing customers to the stock market early, banks can closely support their long-term financial aspirations and develop truly loyal relationships overtime.
By introducing customers to stock market early, banks can closely support their long-term financial aspirations and develop truly loyal relationships overtime. Bumped partners with banks to leverage this opportunity through its technology platform, which rewards consumers in fractional shares of stock with every purchase they make at the stores they love.
Imagine: your customer swipes their card to purchase coffee, and immediately after they receive a notification that they have been rewarded fractional shares from their favorite café. Not only are they rewarded for loyal spending, but they are simultaneously quelling financial anxieties by easily growing their stock portfolios– all while satisfying their caffeine fix.
When less than 50% of Americans today have any money invested in the stock market, banks have a unique opportunity to lead a secure way forward. By empowering customers with a simple way to “invest early and often,” banks can gain the hard-earned trust and enthusiasm of their customers. Partnering with customers by supporting them every step of the way can establish authentic, lifelong relationships truly grounded in loyalty.
Learn how the Bumped platform can strengthen your relationships by helping consumers prepare for the future at BumpedforBrands.com, or make a meeting at Money2020 in Las Vegas Oct. 27-30.
You can find the Bumped team in the Expo Hall at Money2020. We’ll be at the Bumped Mocktail Bar in the Garden — yep, smack dab in the entrance to the Hall. Email [email protected] to set up a meeting.