How banks can help customers achieve financial wellness in the new year

Each New Year, prioritizing one’s health ranks among the most popular resolutions. As we enter 2025, many are expanding their focus beyond physical fitness. This year, boosting financial fitness is becoming equally as important, with more people aiming to improve their financial well-being alongside their health goals.

Financial wellness, or the journey to achieve good financial health, has become a trending topic in banking. That’s because more people say finances are the biggest stressor in their lives, negatively impacting their sleep, personal relationships, and mental and physical health, according to a PwC Employee Financial Wellness Survey.

Consumers need more support to tackle their financial stress. Banks can provide this support through a range of products and services that build financial literacy and put their customers on the path to improved financial wellness in the New Year.

Why financial wellness matters now more than ever

Achieving financial wellness feels elusive for many people today for several reasons.

Bank of America research indicates about 50% of consumers have used a credit card to cover an emergency expense they otherwise couldn’t afford, while 3 in 5 consumers have less than $10,000 in liquid savings.

Current generations also may be falling behind. Gen Z, the oldest of whom are in their late 20s, focuses more on paying for current experiences than saving for the future. Today, only half of all children will earn more than their parents did. In 1940, 90% of children surpassed the economic success of their parents.

These trends indicate people may require more help throughout their financial journey. Consumers need trusted sources who empower them with knowledge to make more informed financial decisions. Many people’s financial journey often starts when they open a bank account or get their first debit card, so banks are well-positioned to offer guidance that improves their financial well-being.

Prioritizing customers’ financial wellness also benefits banks. Offering tools that address financial well-being can help build loyalty, reduce churn and boost lifetime value. Customers will be more likely to entrust the same bank to meet their future financial needs, such as getting a home or business loan or opening a college savings plan.

By providing tailored financial solutions, banks can reduce barriers to financial wellness for their customers today and generate long-term value that pays dividends for their business in the coming years.

Empowering customers with better financial wellness tools

Banks can offer a range of financial tools that address customers’ financial stress, including:

Digital tools

Mobile technology has become deeply embedded in daily life across all generations. Banks can provide integrated tools in their mobile banking apps that deliver personalized budgeting and investment advice based on a customer’s transaction history, profile and long-term financial goals. These digital tools can incorporate real-time insights and built-in tracking mechanisms that help customers chart their progress and make informed financial decisions that move them closer to achieving financial wellness. 

For younger generations, mobile platforms can provide learning resources and gamified savings programs, while older generations can benefit from user-friendly apps that help simplify banking, bill payments and investment or expense tracking. This accessibility helps bridge gaps in financial literacy, offering tailored solutions for individuals at every stage of life.

Financial literacy programs

Mobile technology has revolutionized financial literacy programs by making them more accessible and interactive. Through apps, online courses and digital tools, individuals can learn about budgeting, saving, investing and managing debt at their own pace, anytime and anywhere. Banks can use these digital tools to help consumers navigate challenging financial situations by offering on-demand webinars, newsletters and personalized emails. They can also partner with accredited organizations to offer financial counseling sessions.

These resources can help customers learn about different financial topics, such as understanding their credit score, managing debt, or the difference between an individual retirement account (IRA) and 401(k). Banks can also offer education on savings plans such as tiered matching programs, where the percentage of matched contributions increases as customers save more consistently, or automated roundups that help customers save with little effort and gradually build their emergency fund or savings account for a future purchase, such as buying their first home. 

The path to better financial health

Achieving financial wellness is both a journey and a destination. Many people struggle because they don’t have the right tools, resources or guidance to navigate this journey effectively. However, banks can step in to help fill this gap and provide financial education, digital tools, relevant products and services, and meaningful insights to help consumers attain financial peace that contributes to a healthier mind, body and spirit.

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