Positive Messaging: Recasting How Banks Communicate with Customers

Banks and credit unions struggle to conduct conversations in digital channels, but the problem is especially acute when the topic is bad news like an overdraft or a late payment. Most financial institutions are largely stuck in the first phase of Javelin’s Positive Messaging Maturity Path, where the focus is on do-it-yourself alerts that leave customers to set alerts that remain largely retrospective, sparse, and generic—and drive neither loyalty nor engagement. 

The next step is to take a positive, help-me-do-it approach by reaching out proactively, offering guidance on existing problems, and providing actionable road maps to address future issues. Progressing along the maturity path to ongoing, nurturing conversations will be grounded in three psychological principles—SMART Goals, positive reinforcement, and the COM-B Behavior Change Model—that are explored in four case studies centering on common financial problems and goals.

Key questions discussed in this report: 

• Why is current bank messaging falling short? 
• How can financial institutions evolve along Javelin’s Positive Messaging Maturity Path? 
• What psychological behavior principles should guide FIs as they seek to deliver messages that are more positive, motivational, and actionable? 
• What real-life financial situations lend themselves to positive messaging?

Companies Mentioned: 

Monzo, Regions Bank