Financial wellness forcing big banks to go head-to-head with neobanks

A new study has dubbed embracing financial wellness tools the new ‘digital battleground’ between traditional banks and neobanks.

New data revealed that the banking sector is moving towards a focus on financial wellness as a means of gaining and retaining customers.

The study, commissioned by Backbase and conducted by Forrester Consulting, involved 450 senior business decision-makers and influencers within financial services organisations in the Asia-Pacific Region completing an online survey.

The results showed that banks are embracing the new financial wellness focus to ensure that they remain ingrained in the everyday financial decisions of their consumers.

Neobanks once held the monopoly over financial wellness apps, but the mainstream banking sector is now seeing a high demand for these tools, according to the survey.

This is leading banks to make financial wellness tools a major part of their digital offerings.

Iman Ghodosi, Regional Vice President for Backbase in Asia Pacific, said banks were caught off guard by the buy now, pay later boom and don’t want to repeat their mistakes with neobanks and their helpful financial management tools.

“Digital money management and financial wellness is no longer a gimmick and we’re not far from this being the primary interface between banks and their customers across the sector,” Mr Ghodosi said.

“Legacy institutions are now striving to build consumer trust, and assist with services such as spending analysis, budgeting, creating saving goals, and improving credit scores through these tools.”

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Source: Financial wellness forcing big banks to go head-to-head with neobanks | Savings.com.au