By: Daryl Tolliver
When Americans are having financial difficulties and working to improve their current standing, many turn to their banks and credit unions for guidance on more affordable products, financial planning and accounts that offer value. This may become more of a trend in the future as consumers continue to seek out new ways to make ends meet and get on the right financial track.
For example, the results of the latest Allstate Life Tracks Poll found that a higher number of Americans are concerned about their ability to pay their bills, save money and eliminate debt. Only 50 percent of respondents polled said they have money left over each month after paying their bills, and 41 percent said they are living paycheck-to-paycheck. Of those living paycheck-to-paycheck, 32 percent include college graduates and another 48 percent of non-graduates gave the same response. Another 8 percent said they don't bring home enough income each month to cover their essential bills, such as mortgages, car payments and home utilities.�
"This second Allstate Life Tracks Poll takes the pulse of Americans to measure the health of their personal financial situations," said Don Civgin, president and chief executive officer of Allstate Financial. "Too many Americans are faced with financial challenges today that lead to an unstable future.
Assisting customers in improving their financial condition
The research sends an important message to banks and credit unions that their customers are struggling, and its the responsibility of financial institutions to provide products and services to help their customers. For example, many consumers may not be aware of the services institutions provide, such as financial planning and advising services. Working with a bank professional may help customers obtain products that fit well within their unique needs and allow them to improve their financial condition.�
In addition, many community bank and credit union programs offer valued products that reward�members for everyday spending. Cash back reward programs and rewards checking can help struggling families obtain more cash for purchasing groceries or paying bills via a checking account. Low fee structures and competitive interest rates may also be of interest to consumers who are currently paying excessive fees at larger institutions. Finally, banks and credit unions should more strongly promote mobile banking as a strategy for monitoring transactions, avoiding overdrafts and transferring funds between accounts when necessary. Studies show that consumers feel more confident in their finances when they believe their bank is on their side, so these strategies may enable financial institutions to build stronger relationships with their customers.