5 Ways Banks Can Help Consumers Cope With Inflation

In today’s world, consumers struggle in the domain of financial awareness and financial readiness. This is just made worse by inflation looming large all over the planet. In this situation, clients welcome practical and goal oriented advice from banks and financial companies to assist them in curbing the bane of inflation. From the area of sound financial planning to saving and budgeting, consumers would like to know how to decrease financial burdens quickly. There are five key ways that banks can work to mitigate the effects of inflation for customers.

Getting a Financial Education

Most customers expect that their banks will provide solutions to their financial problems. Nonetheless, in reality, this rarely happens. A recent study reported that almost 60% of retail banking clients expect financial firms and banks to get them to improve their fiscal health. When such guidance is required, banks should provide it. In fact, a few savvy banks provide this information and related services without customers actively seeking help. Educating clients is a financial professional’s job and the prerogative of valuable customers. Content that is straightforward on how to save money and make a budget is helpful in more ways than one.

Monetary Management

A key way to curb inflation is the correct handling of money. For most people, money flows out of purses as easily as blood flows through veins. Additionally, the use of credit has made it more difficult for people to manage money effectively. Plastic can make life easy, but it also makes going into debt easy. With the rise in prices, rational budgeting is crucial. People’s priorities have seen a change from how to pay for a child’s higher education to how to meet daily expenses. Banks that help to solve both problems through giving wise investment advice can retain customers well. Certain tools that are available at most banks to manage cash are never used and these can be used effectively to help customers.

Automated Fixed Savings

As a result of stimulus packages and decreased spending during the lockdown, consumers saved a fair amount of money. Nonetheless, most are now raiding their balances to deal with inflation. In case customers are salary earners, banks can provide them with facilities to save fixed amounts of money from every salary earned. This can be done through an automated request to a bank or via an app that the bank provides. In turn, these savings can be invested to grow wealth as banks may advise through an asset management division.

Card Rate Reduction

The rates of interest are only rising as consumers attempt to curb expenses with growing inflation. Interest rates on credit cards are high, and banks can decrease these to help customers. While big banks like Citibank and American Express do not give 0% balance transfers anymore, other smaller banks may use this chance to offer this. This way, inflation is lessened for new customers that smaller banks wish to attract.

Unique Solutions

Every customer is distinctive with unique issues concerning money. Banks that offer personal advice and solutions are the ones that are ahead in customer satisfaction. By monitoring any client’s spending behavior and saving pattern, banks can help to lower the effects of inflation by advising clients how to make effective use of their capital.

The article was authored by Bahaa Abdul Hussein and has been published by the editorial board of the Fintekdiary. For more information please visit www.fintekdiary.com

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