3 ways banks can seize autumn opportunities for customer engagement

When students go back to school, busy parents have enough to worry about without having to stress over their finances. In quick order, the calendar year will end, and adults face important milestones that require them to make financial planning a priority. That’s where banks and credit unions can help.

The need to reevaluate finances is more relevant than ever. Four in five U.S. consumers say they’re anxious about their financial situation, and Fed rate reductions (the first cut in four years was announced in September and more are predicted) are adding both excitement and uncertainty to consumers’ minds. We’re seeing a bump in new loans and a surge in refinancing of mortgages and other lending. We’re also seeing consumers questioning their savings and investments—wondering if they can get a better return by moving their money.

As 2024 comes to a close, banks and credit unions have a huge opportunity to win new borrowers and deepen loyalty with existing customers by showing up in the moments that matter—providing personalized, relevant financial education and helpful guidance centered on common milestones in consumers’ lives. Here are three financial concerns that will likely be top of customers’ and members’ minds this season actions FIs can take:

Getting ahead of end-of-year financial planning

The last few months of the year see an increased focus on general financial planning. Banks and credit unions should be delivering proactive engagement and educational content around these common year-end priorities, including:

• Reaching out to all customers about year-end tax considerations, helping them make decisions around charitable donations, investment contributions (401(k)s or IRAs), and other ways to optimize their tax returns
• Navigating healthcare open enrollment, including considering HSAs and FSAs, and evaluating other employer-sponsored benefits. In particular, financial institutions should be able to use data signals to home in on individuals who have recently switched jobs, providing more tailored and expansive guidance for this critical audience.
• Offering tips and guidance around the broadly salient top of budgeting for year-end spending (gifts, travel, celebrations, etc.)
• Engaging those with credit card or other debt about strategies to manage, consolidate, or reduce debt and reassess their overall financial health

Planning for seasonal home maintenance

Fall is also when many begin (or come back to) home repair or renovation projects that they’d prefer to avoid during their sunny summer weekends. This sparks a surge of interest in home equity products, which will be even more in demand this year, with rates falling. A recent survey estimates that 62% of U.S. homeowners will start a home improvement project in the next 12 months.

Banks and credit unions should have a solid engagement campaign built around seasonal home maintenance. Moreover, they should be able to use first-party data and other signals to target homeowners—particularly newer ones and others with tappable equity —by providing resources like:

• Tips and checklists for fall home maintenance and winterization in colder climates
• Resources to help them find and evaluate contractors
• Guidance in understanding whether a home equity loan or HELOC is a better fit for their project

Helping parents navigate college financing

Fall is when many high school students begin the arduous college application process. It’s also when parents (or teenagers) begin the even more daunting process of figuring out college financing. A 2023 study by Discover showed that 70% of U.S. parents are concerned about paying for their children’s college (part of a gradual upward trend). And 98% of respondents to a 2024 Princeton Review survey said they will rely on financial aid to bridge gaps.

Financial institutions should find ways to recognize customers and members who are approaching this major milestone—and proactively reach out with helpful education on topics like:

• How to determine if a student might qualify for financial aid—as well as how to navigate FAFSA and apply for other forms of financial assistance
• Estimating total financial responsibility year by year—including both tuition and other living expenses
• Making a plan to cover these costs—including determining whether to take out additional loans (which type, whether to take the loan in the parent or student’s name, etc.)
• Ensuring parents can claim the full tax benefits of any college expenses

Meanwhile, the soon-to-be college students are preparing to begin their economic independence. They’re looking for simple, straightforward guidance to achieving financial success and stability well in advance of arriving on campus. This is a huge opportunity for financial institutions to make an early and powerful impression to begin a lifelong relationship.

To win loyalty, give consumers what they want: trusted guidance

As rates will likely continue to fall through the next year, banks and credit unions recognize the urgency in both the opportunity and risk of these shifting market conditions. They have a chance to win new customers and business. But they also know their competitors will try to use those same opportunities to steal customers.

Fortunately, while market conditions may be changing, the essential engagement strategy doesn’t change: give consumers what they want.

Survey after survey shows people think they need to improve their financial literacy and work on their financial planning. A summer 2024 report from J.D. Power emphasized that “financial advice is resonating more than ever with retail bank customers.” Yet that same report found that less than half of consumers recall receiving financial guidance or education from their financial institutions.

By building a seasonal engagement strategy around common fall and year-end milestones, banks and credit unions can quickly stand out from their competition—bringing consumers the hyper-relevant, helpful guidance they crave, and earning the loyalty that wins customers for life.

James White is General Manager of Banking at Total Expert.