Student Loan Debt Is a Big Blind Spot in Financial Fitness

Banks and credit unions can play a crucial role in the financial lives of student loan accountholders, regardless of whether the institutions themselves issue student loans. And for FIs to advance along Javelin Strategy & Research’s Digital Maturity Path, it’s in their best interests to build stronger borrowers and serve upwardly mobile customers, as those who are bearing student loan debt tend to be.

However, student loans are a boulder blocking the path to financial security. FIs that use digital banking to coach customers on how to get around that boulder will be well-positioned to serve their needs for deposit accounts, auto loans, mortgages, investments, and more. Doing so will require a shift in thinking from selling products to dispensing advice, and that can be difficult for some FIs. It's worth the effort, though. These banking customers generally are young, earn more than those who don’t have college degrees or trade school credentials, own more financial products, and have brighter outlooks for long-term prosperity. They’re the customers banks and credit unions want.

Companies Mentioned:

Array, M&T Bank, MX, QCash Financial, Regions Bank, SavvyMoney