Loan Education: Not Ready for the Mobile-First Era

Although financial institutions provide a wealth of loan-related education on their public websites, a Javelin analysis of seven top banks and credit unions shows they integrate little of the content in digital banking for easy access once customers log in. This effectively treats customers like strangers and nudges them one step closer to searching elsewhere for loans. The generic nature of such educational content also reinforces an outdated do-it-yourself approach that misses opportunities to point customers to relevant and timely content, provide insights that improve their borrowing power, and guide them to suitable loans.

Going forward, FIs must better serve existing customers where they already are—inside digital banking. Rethink lending education with an eye on financially inexperienced, mobile-first Gen Z customers to help them build borrowing power, and augment generic content with proactive insight and guidance.

This report evaluates the benefits and shortcomings of educational content that FIs currently present on their public websites; proposes ways to use secure channels—in particular mobile banking; identifies ways that FIs could personalize education knitted into everyday engagement; and spotlights best practices from banks and third-party websites.

Key questions discussed in this report:

• Why do banks have to rethink how they educate consumers in digital channels about loans and borrowing power?
• What are the current educational tools banks are using, and where are they falling short?
• How can banks use secure channels to better tailor education to the needs of their customers?

Companies Mentioned:

Bank of America, Bankrate, Chase, Chime, Credit Karma, Navy Federal Credit Union, NerdWallet, Petal, Regions Bank, Sable, Tomo, Truist, U.S. Bank, Wells Fargo