Financial wellness coaching – how to personalise your digital banking services

7 min read|Published July 19, 2023
A woman holding up a mobile phone, looking at it and smiling

One third of UK consumers are willing to switch banks to get access to more tailored financial services. As the cost of living rises, so does the public’s need for financial services that help them overcome day-to-day challenges. Here’s how open banking helps your financial services meet this demand.

TL;DR – Quick summary
  • A third of UK bank customers would switch banks for tailored financial wellness support, according to Tink’s latest research.

  • Banks have an opportunity to coach customers with spending and budgeting tools that pull everything into one place, based on real-time data. 

  • Tink’s Data Enrichment and Money Manager products use open banking to help banks improve their customer experience and build loyalty.

TL;DR – Quick summary
  • A third of UK bank customers would switch banks for tailored financial wellness support, according to Tink’s latest research.

  • Banks have an opportunity to coach customers with spending and budgeting tools that pull everything into one place, based on real-time data. 

  • Tink’s Data Enrichment and Money Manager products use open banking to help banks improve their customer experience and build loyalty.

First of all, what does ‘financial services’ entail? Digital tools provided through banking apps that help consumers save more, spend smarter and gain more control of their finances. These tools are essential in helping people achieve financial wellness. In other words, tools that support budgeting, setting and managing savings goals, calculating what is left to spend each month, as well as a complete overview of one’s financial situation. 

These tools have existed digitally in the industry for quite some time, but are increasingly in demand due to the increased cost of living. Using their own data, many banks can introduce these tools to provide digital financial support for their customers, through banking apps. This is successful in many cases and helps their customers achieve healthier financial circumstances. However, when based solely on a bank’s first-party data, it will only provide support to a certain point.

Enter open banking

Here’s where open banking saves the day – and saves your customers money. How? An elegant solution: open banking empowers banks to coach the individual across their accounts, rather than their main bank account in isolation.

When digital financial tools are based only on a financial provider’s own data, they can’t provide their customers with an complete, accurate view of their entire financial situation as people often open accounts with more than one bank. They may receive their salary with one bank, hold an investment account with another and possibly use a third provider for their credit card, none of which are collectively accessible without open banking. And without the ability to easily keep track of all their finances in one app, consumers most likely have to manually track their spending instead.

Tink’s research shows that the most common ways of tracking finances are either manual (47% of UK consumers track their spending manually) or by using basic online banking tools. The amount of people still relying on manual records indicates a significant consumer need for support in obtaining an up-to-date overview of their spending habits.

Coaching an individual – not just their main account

Open banking enables banks to offer a holistic financial coaching experience for their customers, regardless of accounts they hold with different providers. Once a user consents, Tink fetches, processes and synthesises their account information across different providers before displaying it back to them. Everything presents through the main bank’s digital channel, neatly bundling all the customer’s expenses and income in one place. 

More importantly, the digital tools and features generate more value as they work across all of the user’s accounts. For example, integrating open banking into your app enables bank customers to view all their transactions by category – regardless of the payment method used or provider it was drawn from. Another use case is creating budgets managed across different accounts, setting savings goals that also take credit card spending habits into consideration and calculating how much money is left to spend based on all expenses and income. 

A mobile phone screen demonstrating how an all-in-one account overview might look to an app user

Cheat sheet: open banking benefits for banking apps

  • Get to know your users better through deeper financial data
    Learn where customers have other accounts, credit cards and spend the most with deeper insight to their spending behaviour across all their accounts.

  • Increase the time spent in your app
    Make your app the main hub for all your customer’s accounts and financial overview.

  • Convert users to other products
    By understanding customer spending habits, you can also learn which of your other products may be relevant for them.

  • Open up to more users
    A banking app that’s available to everyone, even where a customer holds their main account with another bank, can provide opportunities to be strategic. Use open banking as a way to convert new customers – banks have seen great success in offering financial coaching services to non customers

  • Better financial coaching for your users
    A holistic financial overview helps people stay on top of all their expenses. Supporting them to achieve financial wellness is a differentiator when times are tougher and the cost of living is rising. 

  • A bird’s-eye view of household finances
    By connecting separate accounts into one complete overview, it becomes easier to align customer financial goals, spending and saving together as a unit. 

Ready to get started?

Whether you’re looking to power your existing app with open banking and additional features or in need of an entire PFM setup to plug and play, we have you covered.

Tink Data Enrichment is the ultimate data processing engine that provides you with refined and enriched data, enabling you to build more valuable features for your customers. We do all the backend heavy lifting, giving you a quicker route to innovation.

Tink Money Manager is everything you need when it comes to digital financial coaching. A pre-packaged intelligent toolbox, it contains everything from the backend processing to the user-facing features. Including tools like setting and managing savings goals, showing the amount left to spend each month and a complete overview of your customer’s financial situation, it also includes an advanced budgeting feature. Not only does Money Manager budgeting allow users to set, manage and personalise budgets on all aggregated accounts and categories, it provides automated budget recommendations, based on users top category spending, for an elevated financial coaching experience.

Both products are perfect to use on your own first-party data – cleaned, processed and enriched by Tink, enabling you to offer digital financial support for your customers. For that next level of personalisation that consumers increasingly demand, add open banking to enable them to leverage financial coaching across all their different accounts. Get in touch to see how your business can get ahead.

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