Silo Busting 63: Personalized Financial Literacy with Theodora Lau and Alex Jimenez

“Do consumers know how to make the most effective use of the money they have, and do they have a healthy relationship with that money?” That’s the question Theodora Lau, Founder of Unconventional Ventures, poses to EPAM’s Alex Jimenez, Managing Principal, Financial Services Consulting, at the outset of this episode of Silo Busting.

Retail banking customers are increasingly expressing demand for personalized financial guidance, the kind that translates to genuine financial literacy. And with the data that banks have on hand – not to mention the high level of trust consumers place in financial institutions in general – today’s retail banks are favorably positioned to deliver on this unmet need.

Instead, far too many banks seem eager to design online resource centers containing generalized information around the products and services they want to sell to consumers so they can check that box saying “Yes, we offer financial guidance.” Banks can – and should – be doing more. As Jimenez notes: “My credit card sends me an alert every time every time I use it. I love that. But every once in a while, I get an alert and I want it to say more than just, ‘You spent $100 on Amazon.’ Give me some contextual advice very specific to that transaction! That’s the sort of thing we in the industry can do if we had the wherewithal to do it! We’re in danger as an industry if we move away from being the trusted provider and don’t engage consumers better.”