The monitoring of credit caught fire during the pandemic, bringing about a leading test case for proactive financial fitness features in digital banking. The good news for financial institutions: Consumers are more likely to track their scores through their banks and credit unions than through the many third-party apps on the market. However, as younger generations build and use their credit, they’re looking for more from their digital banking apps.

In this Javelin Strategy & Research report, we look at the opportunities for FIs to create more robust relationships with consumers through an emphasis on features that promote credit building rather than just credit monitoring. We also examine six nonbank rivals competing with FIs for share of wallet and share of mind, the areas where they threaten FIs’ standing with consumers, and how their approaches and tactics are instructive for FIs looking to fortify those customer relationships.

Key questions discussed in this report:

• How has the habit of monitoring of credit evolved, especially since the onset of the pandemic?
• How can financial institutions stand out in helping consumers monitor their credit, build their creditworthiness, and use credit effectively?
• How are the credit-related products of nonbank rivals threatening FIs and what can FIs learn from them?
   

Companies Mentioned:

Chime, Credit Karma, Nerd Wallet, Petal, Sable, Tomo