Financial education should be an important part of our children’s education. Unfortunately, it is not emphasized at a consistent level. Despite this failure, banks have an ethical and practical responsibility to be sensitive to those who lack the experience, knowledge or means to make good financial choices. We must do our part to teach all consumers and businesses about our tools and how they can be used to their benefit.
Having a bank account and knowing how to use it properly is often the first step toward financial stability and the ability to access credit, build wealth and plan for the future. A basic foundation can give someone a head start toward financial independence, preparing them to avoid costly mistakes and obtain useful skills to build a career.
The impact of financial education is not something I discuss as a matter of theory or take lightly. I apply my own experience being raised in an urban setting where we had limited resources and were not exposed to this type of information through the general curriculum. I had to seek out advice to advance my financial knowledge, but not everyone has the opportunity or confidence to take that step. Becoming comfortable interacting with a banker or similar figure is as important to building competency as academic lessons, especially for someone who is coming from an unbanked or underbanked background.
When I started my career in banking, I made a point of teaching financial literacy in Pittsburgh’s inner-city schools. I organized a group of my peers, and we voluntarily taught classes about banking fundamentals and important concepts like balancing a checkbook, using credit responsibly and what attributes a bank evaluates for credit approval. It was a great satisfaction for me to watch it click for students who were hearing, perhaps for the first time, that many aspects of financial success were within their own control and reach.
My own personal experience drove me to put financial literacy front and center at F.N.B. Our goal is to serve as a resource and advisor, but customers need to know we understand and care about them before they will come to us for support. We continually strive to break down ingrained misconceptions and politically motivated distortions about banks and our intentions. Our employees truly care about our clients and the communities they serve.
We have found that the best way to build trust is through transparency and by providing a clear path for customers to grasp the fundamentals of their banking relationship, which is itself a critical form of practical education. Whether a consumer is on our website or reading their account agreement, answers to basic questions — What are the account features? How do I avoid service fees? What are the first steps? — should be readily available, not buried under banker-speak or legal jargon that is written for us, not them.
Focusing on transparency enables us to protect consumers and our company. Customers make better decisions when they have access to suitable products and understand how to use them appropriately. Their success translates to success in our communities and creates opportunities for new business. The connection between financial literacy and economic health is clear, sustaining and an integral part of our collective success.
We also have seen value in meeting customers where they are. People are more likely to use what is easy and familiar. Whether clients want to access services or information digitally in the comfort of their own homes, in a branch, online or at an ATM, the experience should be consistent and convenient.
To this end, we deployed a proprietary financial education program that integrates multiple delivery channels. In addition to community outreach and resources in our physical network, we offer financial education programming digitally through our mobile eStore. Customers experience educational content at the same level of importance as the transactional and service elements in their relationship.
Our approach allows for greater reach, particularly in underserved neighborhoods or areas where we do not have branches. By giving consumers the choice to interact with us and our content in the way that works best for them, we have been able to increase our opportunities for beneficial engagement. I have seen a profound change in how customers are engaging with our bankers, products and services. Our teams have shared that new and long-term clients alike are coming to the table with better-informed questions and are more aware of the outcomes of their banking behaviors.
We all know that financial education works. With increasing concerns regarding the levels of financial proficiency and economic disparity in our country, and without a standardized approach to address this challenge, it is incumbent upon banks to bridge the knowledge gap with empathy, products that prioritize customer success and transparent education about how to use them. The industry should expand outreach and think about its responsibility both in terms of doing the right thing and in relation to its very real financial impact for our companies, customers and communities.
