PPB November 2019

Getting In On The Ground Floor To remain competitive in the financial services market, companies must focus on providing an exceptional client experience. This doesn’t mean offering more digital tools or more robust apps. Companies must strive to make banking personal again. Here’s how promotional products can help. Add an element of delight . While the role of the brick-and-mortar branch is evolving, a physical branch is still an important part of the banking experience for many consumers. When consumers visit a bank or credit union, employees can take their experience to the next level by offering a personalized thank-you note and a promotional gift. It’s a small gesture but it goes a long way in terms of customer retention. Create a VIP program . Credit unions can inspire members to keep using their services by offering a VIP program, complete with a thoughtfully selected promotional product upon signing up. Like a loyalty program, members receive benefits such as fee refunds or certificate dividend bonuses. Keep members engaged in the program by offering different levels of promotional gifts. Customize the conversation . When financial services firms take the time to understand customers’ needs, preferences and behaviors, they can become a true partner for the customer. Whether individuals meet with their bank about mortgage loans or college savings, the bank could follow up with detailed information along with a relevant promotional product. Rewards And Recognition Matter Executives at top-performing financial services firms are more likely than those at average firms to: • Regard their reward and recognition programs as a competitive advantage (52 percent more likely) • Believe that rewards and recognition are a critical tool in managing company performance (27 percent more likely) • Strongly agree that their reward and recognition programs are effective retention tools (36 percent more likely) Source: Incentive Research Foundation A Non-Banking Population • Roughly 14.1 million adults don’t have a bank account. The top reasons include not having money and not trusting banks. • The FDIC considers about 19 percent of American households to be underbanked, which means they have a primary bank account but use financial services such as pawn shops, check cashers and money transfer services. • One in five Americans is “credit invisible,” which means they don’t have any kind of mainstream credit file. Source: U.S. News & World Report A Closer Look At Accounting • About 50% of all tax filers work with an accounting professional to file their tax returns. • 83% of accountants say clients demand more today than they did five years ago. • 67% of accountants feel that the profession is more competitive than ever. • The global market for accounting software will reach $11.8 billion by 2026. Sources: CBS News; Accounting Today; Sage The Latest Data On Debt The average American has $38,000 in personal debt, excluding home mortgages. Credit cards and mortgages are tied as the leading source of debt, followed by student loans and car loans. The average debt by age: Gen Z and younger Millennials (ages 18-24) $22,000 Older Millennials (ages 25-34) $42,000 Gen X (ages 35-49) $39,000 Baby Boomers (age 50+) $36,000 23 percent of Americans have tapped into their retirement savings early in order to pay off debt. Sources: The Urban Institute; Northwestern Mutual; Magnify Money In the United States, 71 million adults have debt in collections. Most of these people live in the South. The states with the highest share of residents with debt in collections are: Louisiana – 46% Texas – 44% South Carolina – 43% West Virginia – 42% Audrey Sellers is a Dallas, Texas- area writer and former associate editor of PPB . F i nanc i a l Se r v i ces | NOVEMBER 2019 | 63 GROW