3 Ways Banks Can Help You Plan for Major Life Events
Written by
J. Arky
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Are you getting ready for a huge change in your life? Perhaps you are looking to buy a home or start a family or make a big investment in your future by going back to school. No matter what your major life event is, there is one teammate you need to have in your corner: your bank.
While it might not seem obvious on the surface how a bank could help you achieve these goals, many financial institutions are equipped with the tools and services to set up their customers for success in the future. James White, the general manager of banking at Total Expert, said that “many customer financial needs correlate directly to key milestones and by anticipating the intent signals, banks can be successful at showing up in moments that matter with the right products and services.”
“Banks and other financial institutions are pivotal in helping consumers plan for key life milestones,” agreed Joe Welu, the founder and CEO at Total Expert. They are increasingly using purpose-built technology and intelligence to engage with customer’s specific needs.
Here are three common life milestones and how banks can help you with your financial planning when you reach them.
Graduation
The grades have been marked. The diplomas passed out. And the next step from school is about to begin. Just make sure your bank is by your side for whatever the future has in store during your new chapter.
“Recent high school or college graduates are just at the start of their financial journey. This is a great time to find a bank that can become a trusted advisor and partner,” White explained.
“High school graduates or those continuing their education may seek new student loans, while others who have finished their education may consider refinancing their student loan debt,” White said. “On the other hand, for customers entering the workforce, career development loans for trade school and financing for other costly exams or certifications could be valuable. This time is also common to open a first credit card or embark on a new auto loan.”
Marriage
Ready to tie the knot? Make sure you have invited all your friends and family to the celebration, as well as looped in your bank about what your plans are after the ceremony and party are over.
“A newly married couple might be looking to open joint savings and checking accounts, or new credit cards. This also marks the time when newly married couples are more likely to open joint accounts,” White continued. “Not to mention, they’re more likely to be in the market for a first-time home or new auto loan. They also might be exploring long-term investment products like CDs, retirement and 529 accounts for future planning together.”
Retirement
If you are getting set to clock out for the last time and start retirement, bring your bank into the conversation to find out the best way to make sure your finances are in order for a post-work life.
“When customers approach retirement, their financial needs change significantly,” remarked White. “This is typically a popular time to purchase their dream vacation home or update to the kitchen they’ve always wanted – in which they might be interested in a new mortgage or HELOCs to fund this. Retirement also brings a new perspective on income and spending – making products like annuities, high-yield CDs and even reverse mortgages more attractive.”
Methods of Banking for Success
Whether getting married, raising a family or retiring, customers’ financial needs will change as life milestones evolve, according to Welu.
“Financial institutions need to go beyond merely using existing customer data and auto-filling names on marketing materials,” Welu said. “It’s about constantly enriching interactions and providing tailored marketing communication to each customer’s unique journey.”
In Welu’s experience, banks and financial institutions that use digital tools equipped with AI, machine learning, advanced analytics and automation are better equipped to recognize the intent signals behind these major milestones.
“They allow them to combine systems of data and action together to create hyper-personalized guidance that goes beyond transactions,” explained Welu. “By integrating technological advancements, banks and financial institutions can use intent signals to anticipate customer needs and offer more personalized, timely support that aligns with customers’ evolving financial landscapes.”
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