It is Spring and officially in three days summer, so this is the time to open up and bring up topics like Emotional Banking. Several influencers have covered this topic – Chris Skinner, Brett King, Ron Shevlin – and Duena Blomstrom has been focused 100% on Emotional banking in her work and with her book `Emotional Banking : Fixing Culture, Leveraging FinTech, and Transforming Retail Banks into Brands`.
The core issue underpinning Emotional banking is the relationship we humans have with money. Undoubtedly not a simple one and clearly an emotional one.
When was the last time any of the three financial institutions you have relationships with, checked in with you as a person? The reality is that we each engage with at least three financial institutions but often with seven (consumer banking, business banking, wealth management, insurance, broker, etc) and the touch point is ONLY when and if we are ready to transact.
Sadly, most neobanks or challenger banks or Fintechs with banking services, are no different than the traditional financial institutions in that respect. And I am not referring to the fact that Revolut does remember my birthday whereas UBS doesn’t. I am referring to the fact that neither Revolut nor UBS, have any idea of what makes my heart beat, what would make me feel more secure, how I dream about the future, why I trained as a Kundalini Yoga teacher etc.
HOW Emotional banking looks like
Here is a concrete example of HOW Emotional banking can look like. Frost Bank is a 150-year-old Texas-based bank that started off as a small mercantile store and is now one of the 50 largest banks in the US. Frost bank has also been receiving the Greenwich Excellence award in the middle market and small banking category.
What caught my attention is their Optimism campaign called Opt for Optimism. They chose to link Optimism with financial health.
First, Frost Bank embarked on a research study about the link between Optimism and financial health. Here are some of their findings:
Optimists experience 145 fewer days of financial stress per year
Optimists are 7x more likely to experience better financial health
They published their research in Mind over Money showing how attitude and mindset toward money impact financial health.
At the same time, they launched a campaign about Optimism through a 30 day challenge during which people can join in performing 30 acts of optimism. They also created a community sharing portal to inspire each other, explore the financial habits of optimists, watch inspiring films the bank produced for the campaign and find out why Frost Bank cares about something like optimism in the first place.
Share in the comments other examples of HOW Emotional Banking looks like.
I have no positions or commercial relationships with the companies or people mentioned. I am not receiving compensation for this post.
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